Combination of the salient features of both line and functional types.

Managers are of two types: Line Managers and Staff managers

execute the function of decision making, issuing orders and controlling while the staff managers execute the functions of advising

execute the functions of advising, assisting and providing expert specialized services

Work is divided into specialized functions.

The superior specialist commands an authority and therefore gives orders relative to his specific functions throughout the lines

The responsibilities are mainly discharged by other managers

• Flat-topped organizationlarge number in terms of supervision

• Is historically the oldest type.

There is a direct flow of authority from one top position to immediate subordinate levels.

There is unity of command.

• There is limit on the number of subordinates

• Very appropriate and ideal for small business