What are the advantages and disadvantages of high versus low administrative intensity?

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Michael Ugulini | (Level 3) Educator

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An advantage of high administrative intensity is that their is considerable staff support for line positions within an organization. Therefore, there is enough staff positions to oversee line functions and consequently problems, such as process bottlenecks can be addressed with quickly. A disadvantage of high administrative intensity is that an organization does tie up significant resources (salary & wages, benefits, and such) by having many staff positions. Some duties overlap and there can be redundancy in too many staff positions.

An advantage of low administrative intensity is that an organization has more line positions. As a result, more people are contributing to the core goals of the organization. They're directly, not indirectly contributing to the production of products, or to the selling of products, as well as the delivery of services, for example. High administrative intensity means there are a group of individuals who are not directly giving of their skills to the basic goals of the company. A disadvantage of low administrative intensity is that their may not be enough experienced and expert oversight of the line functions of line staff. Therefore, this can result in quality issues.


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