Autority power centralization1

Purvish Shah - NAVIGATORPurvish Shah - NAVIGATOR

Line / Staff Authority ,Line / Staff Authority ,Empowerment Empowerment

& & DecentralizationDecentralization


POWERPOWER

The ability of an individuals or groups to The ability of an individuals or groups to induced or influence the beliefs or actions induced or influence the beliefs or actions of other persons or groupsof other persons or groups


AUTHORITYAUTHORITY

The right in a position to exercise discretion The right in a position to exercise discretion in making decisions affecting others.in making decisions affecting others.

or or

Its an Power in An Organization.Its an Power in An Organization.


TYPES OF POWERTYPES OF POWER

LEGIMATE POWER:-LEGIMATE POWER:-Arises from the position .Arises from the position .

EXPERTNESS POWER:-EXPERTNESS POWER:-Power of knowledge.Power of knowledge.

REFRENT POWER”-REFRENT POWER”-Influence , people believe in them and in their Influence , people believe in them and in their

ideas.ideas.


TYPES OF POWERTYPES OF POWER

REWARD POWER:-REWARD POWER:-Power arises from the ability of some people to Power arises from the ability of some people to

grant rewards.grant rewards.

COERCIEVE POWER:-COERCIEVE POWER:-Closely related to reward power and normally Closely related to reward power and normally

arising from legitimate power , it’s the power to arising from legitimate power , it’s the power to punish, whether firing a sub ordinate or else.punish, whether firing a sub ordinate or else.


EMPOWERMENTEMPOWERMENT

Employees at all the levels in the Employees at all the levels in the organization are given the power to make organization are given the power to make the decisions without asking their the decisions without asking their superiors for permission. ( accept superiors for permission. ( accept responsiblities for their actions and tasks)responsiblities for their actions and tasks)


EmpowermentEmpowerment Power should be equal to ResponsiblitiesPower should be equal to Responsiblities

i.e. P=R.i.e. P=R. If P , is greater than ResponsiblitiesIf P , is greater than Responsiblities .( my .( my

way superiority/ can be misuse or abuse of way superiority/ can be misuse or abuse of power).power).

If R, is greater than the PowerIf R, is greater than the Power, results in , results in frustration bcos the person has not the frustration bcos the person has not the necessary power to carryout their required necessary power to carryout their required tasks.tasks.


SCALAR PRINCIPLESCALAR PRINCIPLE

The clearer the line of authority from the The clearer the line of authority from the ultimate management position in an ultimate management position in an enterprise to every subordinate position, enterprise to every subordinate position, the clearer will be the responsibility for the clearer will be the responsibility for decision making and more effective will be decision making and more effective will be organization communication.organization communication.


FORMS OF AUTHORITYFORMS OF AUTHORITY

LINE AUTHORITYLINE AUTHORITY

STAFF AUTHORITYSTAFF AUTHORITY

FUNCTIONAL AUTHORITYFUNCTIONAL AUTHORITY


LINE AUTHORITY LINE AUTHORITY (KEY POINTS)(KEY POINTS)

Line AuthorityLine Authority is direct supervisory is direct supervisory authority from superior to subordinateauthority from superior to subordinate

It flows in a direct It flows in a direct chain of commandchain of command from the top of the company to thefrom the top of the company to the bottom bottom



It exists in all organizations as anIt exists in all organizations as an

uninterrupted scale or series of stepsuninterrupted scale or series of steps

SupervisorsSupervisors -- in line departments, -- in line departments,

such as marketing and production – such as marketing and production – give direct orders, evaluate give direct orders, evaluate performance, and reward or punish performance, and reward or punish those employees who work for themthose employees who work for them



It creates a It creates a unity of commandunity of command thatthat

helps employees know to whom theyhelps employees know to whom they

are accountable, and whom to go to withare accountable, and whom to go to with

a problema problem


LINE FUNCTIONLINE FUNCTION Are those that have the direct impact on Are those that have the direct impact on

accomplishment of the objectives of the accomplishment of the objectives of the enterprise .enterprise .

Decision makingDecision making areas of an areas of an organizationorganization associatedassociated with its with its dailydaily operationsoperations such such as as purchasingpurchasing, , manufacturingmanufacturing, and , and sellingselling. .


STAFF FUNCTIONSTAFF FUNCTION Are those that help the line persons work Are those that help the line persons work

most effectively in accomplishing the most effectively in accomplishing the objectives.objectives.

AdvisoryAdvisory, , analysisanalysis, and support functions , and support functions such as accounting, planning, such as accounting, planning, transportation provided to production (line) transportation provided to production (line) employees.employees.


STAFF AUTHORITYSTAFF AUTHORITY(KEY POINTS)(KEY POINTS)

Staff AuthorityStaff Authority is more limited authority is more limited authority to adviseto advise

Staff Supervisors help line departmentsStaff Supervisors help line departments decide what to do and how to do it butdecide what to do and how to do it but do not have the authority to make finaldo not have the authority to make final decisionsdecisions


STAFF AUTHORITYSTAFF AUTHORITY(KEY POINTS)(KEY POINTS)

They coordinate and provide They coordinate and provide technical assistance or advice to all technical assistance or advice to all advisors, such as accounting, human advisors, such as accounting, human resources, information technology, resources, information technology, research, advertising, public research, advertising, public relations, and legal services etcrelations, and legal services etc


FUNCTIONAL AUTHORITYFUNCTIONAL AUTHORITY

F.A is the right that is delegated to an F.A is the right that is delegated to an individual or a department to control individual or a department to control specified processes, practices, policies, or specified processes, practices, policies, or other matters relating to activities other matters relating to activities undertaken by persons in other undertaken by persons in other department.department.


DECENTRALIZATIONDECENTRALIZATION

The tendency to despair decision making The tendency to despair decision making authority in an organized structure.authority in an organized structure.


THE NATURE OF THE NATURE OF DECENTRALIZATIONDECENTRALIZATION

DecentralizationDecentralization is the extent to which is the extent to which decision-making authority is pushed decision-making authority is pushed down the organization structure and down the organization structure and shared with many lower-level shared with many lower-level employeesemployees


KINDS OF KINDS OF CENTRALIZATIONCENTRALIZATION

Centralization Of Performance:-Centralization Of Performance:- geographically characterised , company geographically characterised , company opertaing in single location.opertaing in single location.

Departmental CentralizationDepartmental Centralization:-:- refers to concetration of specialised refers to concetration of specialised activities , maintenance for a whole plant activities , maintenance for a whole plant may be carried out by single deparment.may be carried out by single deparment.


KINDS OF KINDS OF CENTRALIZATIONCENTRALIZATION

Centralization as an aspect ofCentralization as an aspect of management:-management:- is the tendency ot restrict is the tendency ot restrict delegation of decision making . A high delegation of decision making . A high degree of authority is held at or near the degree of authority is held at or near the top by managers in organizational top by managers in organizational hierarchy.hierarchy.


STEPS IN DELEGATINGSTEPS IN DELEGATING


How Authority is DelegatedHow Authority is Delegated

Authority is delegatedAuthority is delegated when a supervisors give when a supervisors give subordinates discretion to make decisions. The subordinates discretion to make decisions. The process of delegation involves :-process of delegation involves :-

Determining the resultsDetermining the results expected from the position. expected from the position.

Assigning taskAssigning task to the position. to the position.

Delegating authorityDelegating authority for accomplishing these task. for accomplishing these task.

Holding the personHolding the person responsible for the responsible for the accomplishment of the tasks.accomplishment of the tasks.


How Authority is DelegatedHow Authority is Delegated

In practice it is impossible to split this In practice it is impossible to split this process since expecting a person to process since expecting a person to accomplish goals without giving authority accomplish goals without giving authority to achieve them is unfair, as is delegating to achieve them is unfair, as is delegating authority without knowing the end results authority without knowing the end results for which its been used . Moreover , since for which its been used . Moreover , since the superior’s responsiblities cannot be the superior’s responsiblities cannot be delegated. delegated.


Art of DelegationArt of Delegation

Personal attitude towards delegation.Personal attitude towards delegation. ReceptivenessReceptiveness Willingness to let go.Willingness to let go. Willingness to let others make mistakes.Willingness to let others make mistakes. Willingness to trust subordinates.Willingness to trust subordinates. Willingness to establish and use broad Willingness to establish and use broad

controls. controls.


PERSONAL ATTITUDES PERSONAL ATTITUDES TOWARD DELEGATIONTOWARD DELEGATION

Receptiveness:Receptiveness: Delegation is most effective when Manager is Delegation is most effective when Manager is

receptive of ideas of the subordinatesreceptive of ideas of the subordinates NIH (Not Invented here) – The idea belongs to NIH (Not Invented here) – The idea belongs to

someone else, not the managersomeone else, not the manager Willingness to Let Go:Willingness to Let Go:

People who have moved up the ladder must People who have moved up the ladder must not interfere in decisions of the subordinates. not interfere in decisions of the subordinates.

Ex: Hiring secretary.Ex: Hiring secretary.


PERSONAL ATTITUDES PERSONAL ATTITUDES TOWARD DELEGATIONTOWARD DELEGATION

Willingness to Allow Mistakes by Willingness to Allow Mistakes by SubordinatesSubordinates

Willingness to TRUST SubordinatesWillingness to TRUST Subordinates

Willingness to Establish & Use broad Willingness to Establish & Use broad ControlsControls


Advantages of Advantages of DecentralizationDecentralization

Relieves top management burden.Relieves top management burden. Encourages decision making and knowing the Encourages decision making and knowing the

authority and responsiblities.authority and responsiblities. Gives managers more freedom and Gives managers more freedom and

independence in decision making.independence in decision making. Promotes broad control .Promotes broad control . Promotes development of general managers.Promotes development of general managers. Aids in adaptation in fast-changing environment. Aids in adaptation in fast-changing environment.


Limitations of Limitations of DecentralizationDecentralization

Makes difficult to have a uniform policy.Makes difficult to have a uniform policy. Increase complexity of co-ordination .Increase complexity of co-ordination . May results in loss of some control by upper May results in loss of some control by upper

level managers.level managers. Can be limited by the availability for qualified Can be limited by the availability for qualified

Managers.Managers. Involves considerable expenses for training Involves considerable expenses for training

managers.managers. May not be favored by economical scale of May not be favored by economical scale of

organization.organization.

Autority power centralization1

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