Administration and Management

JAMES BOYD 29.1-STAFF-AND-LINE ORGANIZATION Industrial organizations are established primarily to coordinate the activities of many individuals working toward a specific goal. In mining, the goals can vary widely, and the skills necessary to reach them likewise will vary from operation to operation. It is essential to keep in mind the principal point that an organization embodies the necessary skills which supplement each other and achieve a given objective. Those who direct such an organization are grouped together as "management" and accept the responsibilities for the regulation, administration, supervision and guidance of the enterprise. Those who comprise the "administration" and have supervisory authority are referred to as the "executives." In the early days of mining it was common for one executive to exercise virtually complete control over the entire organization, and direct its operation from a central office. However, the science of management has advanced significantly since then. Mining organization administration now allocates increased authority and flexibility to those in direct-line responsibility, and organizes competent people in specialized fields to provide supervisors with guidance where it is needed in day-to-day operations. Few mining companies today are confined to one operation. Therefore, highly developed skills can be provided in the staff which assists management. This is known as staff-and-line organization, illustrated, in general, in Fig. 29-1. Each operation requires diverse skills for the carrying out of specific functions. The acquisition and training of those with such skills is an important operation in assembling organizations. An organization normally is modified to accommodate individuals rather than being a "hard and fast" mold into which people are fitted. The modern manager is inclined to organize to minimize central direction, with delegation to line executives, providing staff whose day-to-day operations, in cooperation with line executives, coordinate a continuing drive toward the organization's objectives. The staff officers, therefore, tend to become what could be described as parts of the president's brain, dealing with specific areas requiring certain skills. They do not necessarily direct operations, but watch them to be sure that the skills which they have themselves developed can be transmitted to line operations by persuasion rather than by direct authority. The elements of management requiring staff assignments are: 1. Planning, which, at staff level, is only a coordinating activity. Planning is done at all levels in the organization. 2. Engineering. 3. Finance. 4. Control. 5. Personnel and industrial relations, which set personnel policies, including salary plans and the means of handling relations with the unions. 6. Research, which, in a modern organization, is essential to progress and needs to be overseen at the top. 7. Legal staff to see that all operations of the company are provided with sound legal advice, and that the company's policies stay within the law.