1. Unity of Command

There is unity of command. Each subordinate receives orders from his boss only.

Unity of command is observed to a great extent. The staff officials cannot give orders to the people in the chain of command.

Unity of command is not followed as each subordinate gets instructions from his line boss and the functional bosses.

2. Discipline

There is strict discipline.

More or less, there is strict discipline.

There is loose discipline because of multiplicity of command by various functional experts.

3. Economy

It is economical because a few line executives as required.

It is a little costlier because of use of staff specialists along with line executives.

It is very costly because of placement of functional experts as heads of various departments.

4. Suitability

It is suitable for small scale operations.

It is suitable for medium-scale operation.

It is suitable for large scale operations where expert knowledge in certain fields is essential.

5. Type of Authority

Only one form of authority (viz. line authority) exists.

Two forms of authority (viz. line authority and advisory or staff authority) co-exist.

Three forms of authority (viz. line authority, staff authority and functional authority) exist together.

6. Departmentalisation

Departments are created only for basic activities.

Departments are created both for basic and specialised activities.

Departments are created both for basic and specialised activities.

7. Specialisation

There is low degree of specialisation since the specialised activities are not specifically recognized.

There is moderate degree of specialisation since the specialised activities are specifically recognised.

There is high degree of specialisation since specialists in addition to their advisory authority are also entrusted with a limited line authority.