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AN INSIGHT
Line/staff authority, Empowerment and Decentralization
CONCEIVED BY:
Ronak B. Bhatt
Niraj Chandra
Karun Kapoor
overview
Issues concerning the governance of an organization
- Niraj Chandra
Concept of organization structure- Karun Kapoor
Delegation of Authority-Ronak B. Bhatt
Issues concerning the governance of an organization
Power
Authority
Empowerment
Power“Power is the ability of individuals or groups to induce or influence the belief or action of other people or group.”
Types of POWER:
Legitimate Power: Position in Society/Organization
Power of Knowledge: Expertness of Person
Referent Power: Belief of Someone
Reward Power: Grant/Hold high grade
Coercive Power: Power of Punishment
Authority
“Authority in an organization is the right in a position to exercise discretion in making decisions affecting others.”
Empowerment
“Empowerment means that employees ,manager, or all levels in the organization have the power to make decision without asking their superior for permission.
Illustration as follows:
Power = responsibility (P=R)
If P>R, then results in autocratic behaviour of superior.
if P<R, it results in frustration of subordinate.
Dispersion of Authority in OrganizationDecentralization of power:
Systematic delegation of authority at the lower level with operation authority for decision. In complete decentralization - no organizational structure
Centralization of power:
Concentration of authority to higher level of management is centralization. There is no organizational structure( complete centralization)
Fayol said” Increase in subordinates role is decentralization, and everything which goes to decrease it is centralization.”
Decentralization
Advantages:
Relieve top management of some burden of making decision.
Make comparison of performance of different organizations unit possible.
Facilitate product diversification.
Aid in adaptation to fast-changing environment.
Limitations:
Makes uniform policy difficult.
Increase complexity of coordination of organization .
May be limited by inadequate planning and control system.
Involve expenses for training manager.
Concept of Organization Structure
Line organization
Line and Staff organization
Line OrganizationIn a Line Organization all managers have direct authority over their respective subordinates, through Scalar chain of command.
Sca
lar
chain
of
com
mand
Managing Director
Production Manager
Production Superintendent
Foreman
A direct relationship between superior and subordinate works as:
As a chain of command
As a channel of communication
As a carrier of responsibility
Line and staff OrganizationThe line and staff organization refers to an organization in which two types of authority relationships co-exists. They are Direct or Line authority and Advisory Authority.
Staff managers advice ,support and serve line managers.
Line & Staff Organization Structure
Chief Executive
Asst. to Chief Executive
Personnel Manager
R&D Manager
Mfg. Manager Mktg. Manager
Qty. Ctrl. Manager
Plant Manager
Plant Manager
Industrial Relations Manager
Training manager
Employ service manager
Industrial. Product manager
Consumer Product manager
Marketing Research manager
Line & Staff Conflict
View point of Line Managers:
Lack of Responsibility
Encroachment of Line Authority
Dilution of Authority
Theoretical Authority
Line & Staff Conflict
View point of Staff Managers:
Lack of Proper use of staff
Resistance to New Ideas
Lack of Proper Authority
Functional Authority
“Functional Authority is the power which an individual or department may have delegated over specific processes, practices, policies or other matters relating to activities undertaken by personnel in departments other than its own.”
Functional Authority
Advantages:
Specialization
Mass Production
Efficiency
Flexibility
Disadvantages:
Conflict among Superiors
Lack of Co-ordination
Lack of Speed
Expensive
Summary of Line/Staff/Functional Organization
Sr. No.
Feature Line Organizatio
n
Line and Staff Organization
Functional Organization
1. Simplicity High Not So High Low
2. Suitability For small enterprises
For medium and large
enterprises
For large enterprises
3. Specialization
Low Moderate High
4. Work load of
managers
High Moderate Uneven
5. Unity of Command
Strictly observed
Observed to great extent
Not observed in general
6. Economy High Moderate Low
Delegation of Authority
Process of Delegation:
Determining the results expected from position
Assigning task to the position
Delegating authority for accomplishing these tasks
Holding the person in that position responsible for the accomplishment of the task.
Splintered AuthoritySplintered authority exists wherever a problem cannot be solved or a decision made without pooling the authority of two or more managers.
Splintered Authority V/S Superior Authority
Recovery of Delegated Authority
Art of DelegationPersonal Attitudes towards Delegation
Receptiveness
Willing to let go
Willingness to let others make mistakes
Willingness to trust subordinates
Willingness to establish and use Broad Controls
Guidelines for overcoming Weak Delegation1.Define Assignments and Delegate Authority in light of Results Expected.
2.Select the person in light of the job to be done
3.Maintain open Lines of Communication
4.Establish Proper Controls
5.Reward Effective Delegation and Successful Assumption of Authority
Synopsis
We have discussed following topics in the presentation above:
Power and its bases
Authority
Empowerment
Line & Staff concept
Centralization/Decentralization/Recentralization
The process of Delegation of Authority
The Art of Delegation
Thank You