Staff authority is advisory only. There is no authority to take action (except when someone is a
manager of a staff function, e.g., human resources), and there is no responsibility for revenue
generation. Someone with staff authority assists those with line authority as well as others who
have staff authority. Examples of staff authority are human resources, legal, and accounting,
each of which is relevant to a small business. Staff personnel can be extremely helpful in
improving the effectiveness of line personnel. Unfortunately, staff personnel are often the first to
go when cutbacks occur. As a small business grows, a decision may be made to add staff
personnel because the most significant factor in determining whether or not to add personnel is
the size of a business. The larger the organization, the greater the need and the ability to hire
staff personnel to provide specialized expertise. Small businesses, however, may prefer to
hire outside service providers for staff functions such as legal and accounting services because it
would be difficult to keep such people busy full time. Remember, cash flow is king.
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