Thursday, April 17, 2014

Unit 3 (P 28): Organizational Structure and Design: Delegation and Decentralization of Authority

Delegation of authority:
  • Delegation of authority is assigning work to subordinates and giving them necessary authority to do the assigned work effectively.
  • Delegation means assigning of certain responsibilities along with the necessary authority by a superior to his subordinate managers.
  • Characteristics or Features of delegation of Authority.
    • Delegation is the authorization to a manager to act in a certain way independently.
    • Delegation has a dual characteristic. A superior delegates authority to subordinates, however a superior at the same time still retains authority
    • Delegation can be done for organizational purposes only.
    • Authority once delegated can be enhanced, reduced or withdrawn depending upon the requirement. The changes in organization structure, organization climate, policy, procedure, and method require modifications in delegation of authority
    • A manager cannot delegate authority which he/she does not possess. 
    • The person delegating authority has to bear responsibility for the activities of the person to whom the authority has be delegated.
  • Advantage of delegation of authority:
    • Reduce workload of manager.
    • Quicker and better decisions.
    • Seek and accept challenge of new responsibility.
    • Motivation and moral.
  • Problem or Barriers to delegation of Authority:
    • Avoidance to accept additional responsibilities.
    • Lack of confidence and trust.
    • Reluctant to delegate.
    • Lack of motivation.
    • Loss of control.
    • Fear of competition.
    • Mutual distrust

Decentralization of authority:
  • Decentralization is the systematic and scientific delegation of managerial authority to middle and lower level management according to their weight-age of responsibility.
  • It is giving out the considerable autonomy in decision making for middle and lower level manger.
  • Advantage of decentralization:
    • Relief to the top management.
    • Facilitates diversified managers’ development.
    • Greater employee enthusiasm and coordination.
    • Effective control of the work.
    • High moral and motivation.
    • More adaptation to the environment.
  • Disadvantage of decentralization:
    • Increase in expenditure and time consuming.
    • Increase in risk of bad decisions.
    • Difficulty in communication.
    • Can create conflict.
Emerging concept in organizing and design

  1. Re-engineering process: it is concerned with radical design of business processes to improve in critical area such as const, quality, service and speed. In this process we constructively destruct the old process.
  2. Team work: the team concept breaks the departmental barriers and decentralizes the decision making to the level of the work team. This environment enhances performances, reduces stress, and promotes the climate of creativity and innovation in the organization.
  3. Network organization structure: the main objective network structure is to eliminate the departments and to perform specialized works through outside experts. It is also known as virtual organization structure, where the main task of management is to focus on strategies and to maintain coordination among experts for uniform progress.
  4. Downsizing organization: It is process or restructuring the organizational design by reducing unnecessary levels, jobs, units, and employees. Right size is the purpose of downsizing. It focuses on minimizing the vertical size and maximizes the horizontal size. The main purpose is to reduce the cost of operation.
  5. Boundary-less organization: this organization have no barriers in information flow. There is no rigid structure and eliminates all chain of command, have limitless span of control, and replace departments with empowered teams. Usually they are functional experts who form an alliance within an organization to fulfill their contractual obligations.



16 comments:

  1. feature of deleganation of authority are
    -no delegation of total authority..
    -delegation of only that a manager has
    -representation of the superior
    -delegatation of organizatiogn purpose
    -restoration of delegatate authority
    -baalance of responsibility and authority

    ReplyDelete
  2. Meaning of delegation of authority

    All activities are not performed by one person. Authority should be provided to the subordinates too. Process of transferring authority and creation of responsibility between superior and subordinates to accomplish a certain task is called delegation of authority. It can take place without decentralization. It can be withdrawn by delegator at any time. It minimizes the burden of managers of unit, departments or plant. Relationship is between superior and immediate subordinates are indicated. It is technique of management used to get the things done through others. It is confined to manager and subordinates. Authority is only delegated, not responsibilities. Very important to management process Control remains in hand of superior who supervise the activities of subordinates. It is an art of management science. When authority is not given to subordinates there is no performance. Delegation is the process of sharing power and work (deliver the power from one to another).

    According to McFarland, delegation of authority is attended by following features:

    1. Delegation involves taking decision about the logical and meaningful units of work into which the overall duties of the delegator can be broken up.

    2. It also involves deciding by the delegator as to who are the subordinates capable of handing different parts of the sub-divided job. By implication, delegation includes the features of division of labour and specialisation.

    3. Since delegation of authority is done to subordinates, it involves a correct assessment of the span of supervision which the delegator would be able to effectively control.

    4. Delegation of authority is also attended by the feature of connecting more than one level of organizational hierarchy. The delegator must decide how many levels would be appropriately liked up through delegation.

    5. Delegation of authority to handle a job is also accompanied by authorisation of the delegate to call for and use resources necessary for executing his part of the task.

    6. Delegation of authority is always accompanied by the feature of 'Accountability' Accountability signifies the obligation or answerability of the delegate to the delegator for the proper accomplishment of responsibility cast upon him through delegation of authority.

    Delegation of authority is attended by the feature of detailed and exhaustive records of performance of each of the delegate's. This feature ensures proper enforcement of accountability.


    1. Superior related advantages:

    The essence of delegation process is empowering someone to act for the manager. The manager shares his burden of work with his subordinates through delegation. Thus the manager is allowed to concentrate on other works.

    2. Subordinate related advantages:

    Delegation allows freedom and expands the wisdom of subordinates. It enhances the position and status of the subordinates as they are given powers to exercise.

    3. Advantages to organisation:

    Organisation grows and expands out of delegation. Delegation speeds up decision making as power is shared at all levels.

    4. Improves behavioural climate:

    The behaviour pattern of every individual is improved by delegation. Granting of freedom to act by the superior shows the confidence of the superior over tile subordinates.

    5. Provides continuity:

    When a manager is on leave the work is taken by subordinates and provides continuity in functions.

    6. Provides motivation:

    It motivates the subordinates to do better and perform well.

    ReplyDelete
  3. Delegation of authority means assigning work to subordinates and giving them authority to to do that work properly. Delegation is the assignment of responsibility or authority to another person (normally from a manager to a subordinate) to carry out specific activities. It is one of the core concepts of management leadership. However, the person who delegated the work remains accountable for the outcome of the delegated work.

    Decentralization is the process of redistributing or dispersing functions, powers, people or things away from a central location or authority.

    Emerging concept in organizing and design are team structures, virtual organizations, boundaryless organizations , organizational downsizing and process reengineering.

    ReplyDelete
  4. Delegation of Authority

    Delegation of authority is one vital organizational process. It is inevitable along with the expansion and growth of a business enterprise. Delegation means assigning of certain responsibilities along with the necessary authority by a superior to his subordinate managers. Delegation does not mean surrender of authority by the higher level manager. It only means transfer of certain responsibilities to subordinates and giving them the necessary authority, which is necessary to discharge the responsibility properly. Delegation is quite common in all aspects of life including business. Even in the college, the principal delegates some of his authority to the vice-principal.

    In delegation, an attempt is being made to have meaningful participation and cooperation from the subordinates for achieving certain well-defined results. Due to delegation, the routine responsibilities of the superior are reduced. As a result, he concentrates on more urgent and important matters. Secondly, due to delegation, subordinate becomes responsible for certain functions transferred to him. Delegation is a tool, which a superior manager uses for sharing his work with the subordinates and thereby raising his efficiency.

    Delegation is not a process of abdication. The person who delegates does not divorce himself from the responsibility and authority with which he is entrusted. He remains accountable for the overall performance and also for the performance of his subordinates. Delegation is needed when the volume of work to be done is in excess of an individual's physical and mental capacity.

    Delegation involves the following three basic elements:
    Assignment of duties to subordinates,
    Granting of authority to enable the subordinates to perform the duties assigned, and
    Creation of obligation on the part of subordinate to perform duties in an orderly manner.

    ReplyDelete
  5. Decentralization of Authority

    Decentralization of authority means dispersal of decision – making power to the lower levels of the organisation. According to Allen, decentralization refers to the systematic effort to delegate to the lowest level all authority except that which can only be exercised at central points. Thus decentralization means reservation of same authority (power to plan, organize, direct and control) at the top level and delegation of authority to make decision at points as near as possible to where action takes place.

    Decentralization is not same thing as delegation. Delegation means entrustment of responsibility and authority from one individual to another. But decentralization means scattering of authority through the organization. It is the diffusion of authority with in the enterprise. Delegation can take place from one person to another and be a complete process. But decentralization is complete only when the fullest possible delegation is made to all or most of the people.
    Decentralization is distinct from dispersion

    Dispersion occurs when plants and offices are located at different place with physical distance between them. Performance of work in dispersed plants and offices does not necessarily lead to decentralization. A company may be highly centralized although its physical facilities and employees are widely dispersed and company may be highly decentralized even through all physical facilities and employees are located in a single building.

    ReplyDelete
  6. Delegation of authority is one vital organizational process. It is inevitable along with the expansion and growth of a business enterprise. Delegation means assigning of certain responsibilities along with the necessary authority by a superior to his subordinate managers. Delegation does not mean surrender of authority by the higher level manager. It only means transfer of certain responsibilities to subordinates and giving them the necessary authority, which is necessary to discharge the responsibility properly. Delegation is quite common in all aspects of life including business. Even in the college, the principal delegates some of his authority to the vice-principal.

    ReplyDelete
  7. Decentralization of Authority:

    Decentralization of authority means dispersal of decision – making power to the lower levels of the organisation. According to Allen, decentralization refers to the systematic effort to delegate to the lowest level all authority except that which can only be exercised at central points. Thus decentralization means reservation of same authority (power to plan, organize, direct and control) at the top level and delegation of authority to make decision at points as near as possible to where action takes place.

    Decentralization is not same thing as delegation. Delegation means entrustment of responsibility and authority from one individual to another. But decentralization means scattering of authority through the organization. It is the diffusion of authority with in the enterprise. Delegation can take place from one person to another and be a complete process. But decentralization is complete only when the fullest possible delegation is made to all or most of the people.
    Decentralization is distinct from dispersion

    Dispersion occurs when plants and offices are located at different place with physical distance between them. Performance of work in dispersed plants and offices does not necessarily lead to decentralization. A company may be highly centralized although its physical facilities and employees are widely dispersed and company may be highly decentralized even through all physical facilities and employees are located in a single building.

    ReplyDelete
  8. Delegation of authority:
    It is a process of giving the task to the employees and also providing them the necessary authority in that particular task.

    Advantages:
    It helps save time and effort.
    It reduces workload.
    Employees can learn leadership skills.
    They also accept challenges and responsibility.

    Decentralization of authority:
    It is the systematic and scientific delegation of managerial authority to middle and lower level management according to their weight-age of responsibility.

    ReplyDelete
  9. Delegation of authority:-
    Delegation of authority means assigning work to subordinates and giving them authority to to do that work properly. Delegation is the assignment of responsibility or authority to another person (normally from a manager to a subordinate) to carry out specific activities. It is one of the core concepts of management leadership. However, the person who delegated the work remains accountable for the outcome of the delegated work.

    Decentralization of authority:
    It is the systematic and scientific delegation of managerial authority to middle and lower level management according to their weight-age of responsibility.

    Emerging concept in organizing and design are team structures, virtual organizations, boundaryless organizations , organizational downsizing and process reengineering.

    ReplyDelete
  10. Meaning of delegation of authority

    All activities are not performed by one person. Authority should be provided to the subordinates too. Process of transferring authority and creation of responsibility between superior and subordinates to accomplish a certain task is called delegation of authority. It can take place without decentralization. It can be withdrawn by delegator at any time. It minimizes the burden of managers of unit, departments or plant. Relationship is between superior and immediate subordinates are indicated. It is technique of management used to get the things done through others. It is confined to manager and subordinates. Authority is only delegated, not responsibilities. Very important to management process Control remains in hand of superior who supervise the activities of subordinates. It is an art of management science. When authority is not given to subordinates there is no performance. Delegation is the process of sharing power and work (deliver the power from one to another).

    According to McFarland, delegation of authority is attended by following features:

    1. Delegation involves taking decision about the logical and meaningful units of work into which the overall duties of the delegator can be broken up.

    2. It also involves deciding by the delegator as to who are the subordinates capable of handing different parts of the sub-divided job. By implication, delegation includes the features of division of labour and specialisation.

    3. Since delegation of authority is done to subordinates, it involves a correct assessment of the span of supervision which the delegator would be able to effectively control.

    4. Delegation of authority is also attended by the feature of connecting more than one level of organizational hierarchy. The delegator must decide how many levels would be appropriately liked up through delegation.

    5. Delegation of authority to handle a job is also accompanied by authorisation of the delegate to call for and use resources necessary for executing his part of the task.

    6. Delegation of authority is always accompanied by the feature of 'Accountability' Accountability signifies the obligation or answerability of the delegate to the delegator for the proper accomplishment of responsibility cast upon him through delegation of authority.

    Delegation of authority is attended by the feature of detailed and exhaustive records of performance of each of the delegate's. This feature ensures proper enforcement of accountability.


    1. Superior related advantages:

    The essence of delegation process is empowering someone to act for the manager. The manager shares his burden of work with his subordinates through delegation. Thus the manager is allowed to concentrate on other works.

    2. Subordinate related advantages:

    Delegation allows freedom and expands the wisdom of subordinates. It enhances the position and status of the subordinates as they are given powers to exercise.

    3. Advantages to organisation:

    Organisation grows and expands out of delegation. Delegation speeds up decision making as power is shared at all levels.

    4. Improves behavioural climate:

    The behaviour pattern of every individual is improved by delegation. Granting of freedom to act by the superior shows the confidence of the superior over tile subordinates.

    5. Provides continuity:

    When a manager is on leave the work is taken by subordinates and provides continuity in functions.

    6. Provides motivation:

    It motivates the subordinates to do better and perform well.

    ReplyDelete
  11. Process of transferring authority and creation of responsibility between superior and subordinates is called delegation. It can take place without decentralization

    Decentralization is delegation of and dispersion of authority. It is not possible without delegation of authority

    ReplyDelete
  12. •Delegation of authority:
    Delegation of authority is assigning work to subordinates and giving them necessary authority to do the given works effectively. It is most significant concept and practice which affect to managerial functions and overall work of the organization. Management is the art of getting things done through others and delegation is the means to get result done by the subordinates. The expansion of business volume and diversification of line of business makes impracticable to handle all the business by a single manager. Thus, the concept of delegation of some of managerial authority to subordinates comes into practice in present day business organization. Here, manager delegates some of his authority to subordinates along with responsibility that develops the feeling of dedication to work among the subordinates. The top level management plays only the role of supervisor and visits them to provide guidance, suggestions and instruction. This concept, in one sense, minimizes the work load of a manager and in another sense, develops overall working efficiency of the organization.

    •Decentralization of authority:
    Decentralization is the systematic delegation of authority to the level where the actual work is done. It is the philosophy of systematic delegation of managerial authority to the middle and lower level management in accordance with their responsibility. In practical field, it is not possible to delegate absolute authority to lower level management. The top level management can only delegate substantial power of management to the lower level authority. Thus, every organization has to decide how much should be distributed to the lower level managers. Generally, it depends upon the nature and size of the organization and responsibility vested to lower level. The top level management has to delegate such degree of authority to the lower level so that quick decision and implementation becom

    ReplyDelete
  13. Delegation means assigning of certain responsibilities along with the necessary authority by a superior to his subordinate managers.

    Decentralization is the process of redistributing or dispersing functions, powers, people or things away from a central location or authority.

    Emerging concept in organizing and design are team structures, virtual organizations, boundaryless organizations , organizational downsizing and process reengineering.

    ReplyDelete
  14. Authority is the right to do something; responsibility is an obligation to do something; accountability is inseparability to superior; power is the ability to do something; and autonomy is the freedom, independence and discretion in what one does.
    Delegation of Authority:
    Concept of Authority:

    Since authority is the crux in distribution of authority. It would be necessary to understand what the authority is. Authority is the right to do something. Authority is the power legitimised by organisation which empowers a manager to make decisions, to use organisational resources, and to monitor and regulate the behaviour of subordinates for the efficient performance of assigned work responsibilities. Authority (right do something) is different from power (ability to do something).

    Authority is positional, but power may not be positional. Authority has the legal power, but power is because of personal influence and resource fullness. Authority always moves downward, but power can move in any direction. Authority can be delegated, but not power. Authority commands fear but power commands respect.
    Characteristics of Authority:

    (i) It is the right given to the managers.

    (ii) The right is vested in position and the manger gets it when he occupies the position.

    (iii) Authority originates at the top and moves downward.

    (iv) Authority can be delegated by a superior to his subordinate.

    (v) Authority creates superior – subordinate relationship.

    (vi) Manager exercises authority to influence subordinates’ behaviour so as to get the things done.
    Types of Authority:

    1. Line, staff and functional Authorities:

    Line authority contributes directly to attain the goals of an organisation. Staff authority does not form part of the chain of command and is advisory in nature. Functional authority is the right to give orders within specific task areas and is operational only for designated amount of time.

    2. Shared Authority and wholesome Authority:

    When authority is delegated to two or more persons to solve a common problem, it is called shared authority. Wholesome authority means giving authority to one person only to solve the problem.

    3. General and specific Authority:

    When the authority to perform all the functions in this department or division subject to overall guidance and control of the superior (like chief Marketing officer in the Marketing department), it is known as general authority.

    Under a specific authority, a person is given authority regarding specific function or functions. Specific delegation is functional in nature and is precise.

    4. Formal and informal:

    When the authority is delegated according to organisation structure, it is known as formal delegation. A salesman being granted authority to give cash discount of 5% on sales by the sales manager is formal authority. Informal authority is given to short circuit the formal procedure to perform the task quickly.

    5. Charismatic Authority and Positional Authority:

    When the rights and power come through the charm and influence of one’s personality (like Mahatma Gandhi, Napoleon Bonaparte, et al) it is known as charismatic authority. When the authority is acquired because one is appointed as a manager, it is positional authority.

    6. Written and oral Authority:

    When the authority is granted in writing it may be called legal or written authority. Oral authority is known as traditional authority guided by traditions and customs.

    7. Downward and sideward Authority:

    When authority is granted to immediate subordinate it is referred to as downward delegation. If the authority is given to another official of the same rank, it is known as sidewalk authority or delegation of authority.

    ReplyDelete
  15. Delegation of authority means assigning work to subordinates and giving them authority to to do that work properly. Delegation is the assignment of responsibility or authority to another person (normally from a manager to a subordinate) to carry out specific activities. It is one of the core concepts of management leadership. However, the person who delegated the work remains accountable for the outcome of the delegated work.

    According to McFarland, delegation of authority is attended by following features:

    1. Delegation involves taking decision about the logical and meaningful units of work into which the overall duties of the delegator can be broken up.

    2. It also involves deciding by the delegator as to who are the subordinates capable of handing different parts of the sub-divided job. By implication, delegation includes the features of division of labour and specialisation.

    3. Since delegation of authority is done to subordinates, it involves a correct assessment of the span of supervision which the delegator would be able to effectively control.

    4. Delegation of authority is also attended by the feature of connecting more than one level of organizational hierarchy. The delegator must decide how many levels would be appropriately liked up through delegation.

    5. Delegation of authority to handle a job is also accompanied by authorisation of the delegate to call for and use resources necessary for executing his part of the task.

    6. Delegation of authority is always accompanied by the feature of 'Accountability' Accountability signifies the obligation or answerability of the delegate to the delegator for the proper accomplishment of responsibility cast upon him through delegation of authority.

    ReplyDelete
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    ReplyDelete