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Power - Authority

POWER: The ability of individualsor groups to induce or influencethe beliefs or actions of otherpersons or groups.AUTHORI TY: The right in a position(the right of the person occupyingthe position) to exercise discretionin making decisions affectingothers.

{Legitimate Power}

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Line & Staff Concepts

" Line refers to those positions and elements of the Organisation, which have theresponsibility and authority and areaccountable for accomplishment of primary objectives. Staff elements are those which

have responsibility and authority for providingadvice and service to the line in attainment of objectives " . Louis Allen

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N ature of Line & Staff Relationship

Line authority gives a superior a line of authority over a subordinate.

SCALAR P rinciple : T he clearer the line of authority from the ultimate management position in an enterpriseto every subordinate position, the clearer will be theresponsibility for decision making and the more effective

will be organization communication.N ature of Staff relationship is advisory (investigate, research and give advice to linemanagers).

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Example

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Activity

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F unctional Authority

The right which is delegated to anindividual or a department tocontrol specified processes,practices, policies, or other mattersrelating to activities undertaken bypersons in other departments.

Delegation of FunctionalAuthority.(small slice of authority of a line authority)

Restricting Functional authority.

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B enefits

O perating Managers are now faced withmaking decisions that require expertknowledge in various areas (economics,technical, political, legal, social )Specialists may be allowed the time to think,

to gather data, and to analyze, where as busymanagers cannot do so.W hen Complexity increases.

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Limitations

Danger of Undermining LineAuthority.Lack of Staff responsibility.Thinking in a Vacuum.

Manegerial P roblems.

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Line or Staff? W hats your Career Goal?

Having real authority for executingdecisions can be exciting, but noteveryone can make the transition.Aspiring managers should carefullyanalyze their strengths, weaknessesand motivations before choosingtheir career paths.W hat do you think you are cut outfor ?

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DELEGATION

Act of assigning formal authority &responsibility for completion of specificactivities to a subordinate.

Necessary for the efficient functioning of

any organization.

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ADVANTAGESFunction with maximum effectivenessImproves self-confidence & willingness to take initiativeEffective & Fast Decision-making

DISADVANTAGESM anager-Disorganized or inflexibleInsecurity & confusion about responsibility (manager or

employee)Fear of self-authorityAvoid responsibility & risk

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PREREQUISITESFreedom to choose different methods & solutions for

employeesOpen communication between managers & employeesM anagers ability to analyze factors such as organizations

goals, tasks requirements & employees capabilities

TASKS FOR EFFECTIVE DELEGATIONDecide which tasks can be delegated

Decide who should get the assignmentProvide sufficient resources for carrying out the delegated task Delegate the assignmentBe prepared to run interferenceEstablish a feedback system

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Decision authority is located at thetop of the organization hierarchy.

Allows management to coordinatethe various parts of the organization ina consistent manner.

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Decision authority is pushed to lower levelsin the organization.

Greater flexibility to respond to changeSpurs innovation, risk taking & engage in

experimentationC ommon in organization

Greater utilization of the talents & abilities

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PROSUnburdening of top managersBetter decision makingBetter training, morale & initiative at lower levelsM ore flexibility & faster decision making

Decentralization as GOOD & C entralization as BAD

CONSRequires more thorough manager trainingAdditional staff

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It helps organization members achieve their objectives.

Factors usually considered:i. Environmental influencesii. Organizations size & growth rateiii. Other characteristics : costliness of given

decisions, top management preferences,organizations culture & abilities of lower-level managers

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THANK YOU!!