ABSTRACT

In the systems approach, we have discussed how inputs are taken and transformed into outputs through the use of raw materials, equipment, and people. Managing people is the key to successfully creating an efficient and effective organization. Within a firm, there are line and staff personnel. Line personnel are those who are directly involved with producing the product or service, whereas staff personnel provide support for the line managers and employees. Examples of staff departments include human resources (HR), accounting, finance, and legal. The responsibility for effectively managing human resources belongs primarily to line managers. In most firms, line managers have more power than staff.