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Premium member Presentation Transcript Decentralization, Delegation & Decentralization : Decentralization, Delegation & Decentralization Essentials of Management Koontz & Weihrich Objectives : Organizing Nature of Authority & Power Line Authority & Staff role Functional Authority Centralization-Decentralization-Delegation Objectives Organizing : Managerial function: Identification & Classification of required activities Grouping of activities necessary to attain objectives Assignment of each grouping to a manager with the authority (delegation) to supervise it The provision for coordinating horizontally & vertically Departmentation, Line/ Staff Authority, Decentralization Organizing Power : Ability of an individual/group to induce/INFLUENCE the beliefs/actions of other person/group Legitimate/positional powers Expert power Referent power : influence which people exercise because people believe in them & their Idea Reward power Coercive power Power Authority : in an organization is the Right in a position (person occupying position) to exercise DISCRETION in making decisions affecting others Authority Line Authority & Staff relationship : Line authority is that relationship in which superior exercises direct supervision over subordinates Staff relationship consists of giving advice & counsel NRHM- PMU/CONSULTANT/Advisor: planning commission/ Advisory Committees Benefits of Staff: ever growing complexities, Critical advice, Expert Knowledge, Time to think & analyze, OD Limitations of Staff: danger of undermining Line authority, friction, thinking in a vacuum Line Authority & Staff relationship Functional Authority : is the Right which is delegated to an individual to control specified processes, practices, policies or other matters relating to activities undertaken by persons in other departments NRHM- DPM/ACM - Line authority Functional Authority Decentralization : Tendency to disperse decision making authority in organized structure Centralization: tendency to Concentrate decision making authority in organized structure Tendency to restrict delegation of decision making Geographical Departmental concentration of activities In an organization there could be no absolute decentralization/centralization Decentralization as a Philosophy & Policy: Decentralization implies more than delegation: It requires careful selection of which decisions to be pushed down & which to be hold near the top specific policy making to guide decision making proper selection & training of people adequate controls & feedback Decentralization Delegation : Process of delegation involves: determining the results/outcomes from a position assigning tasks delegating authority for accomplishing tasks Holding the person responsible for accomplishment of task**** BUT RESPONSIBILTY AS A WHOLE IS NOT TO BE MISUNDERSTOOD AS DELEGATED Splintered Authority: Pooling the delegation of two or more managers. Recurring use of splintered authority may be suggestive of problem areas in process of delegation Delegation THE ART OF DELEGATION : Most failures in effective delegation occur not because managers do not understand the nature & principles of delegation but because they are unable/unwilling to apply them. Much of the reasons lies in personal attitudes towards delegation Personal Attitudes towards delegation: Receptiveness Willingness to let go Willingness to let others make mistakes Willingness to trust subordinates Willingness to establish & use BROAD controls THE ART OF DELEGATION THE ART OF DELEGATION : Guide for overcoming weak delegation Define assignments & delegate in the light of results expected Select the person in light of job to be done Maintain open lines of communication Establish proper controls Reward effective delegation THE ART OF DELEGATION Advantages of Decentralization: : Relieves top management of some decision making Encourages assumption of authority & responsibility Give managers more autonomy Promotes establishment of broad controls Make comparisons of different units possible Facilitates setting up of profit centres Facilitates product diversification Promotes development of managers & Organization Advantages of Decentralization: Limitations of Decentralization: : Makes it difficult to have a uniform policy Increases complexity Results in some loss of control by top managers May be constrained by inadequate planning May be constrained by inadequate qualified managers Involves considerable EXPENSES Limitations of Decentralization: Balance : Fine balance Preferably centralization for financing, budgeting, profit goals, capital items, new products, major marketing strategies, personnel policy etc. Balance THANK YOU : THANK YOU You do not have the permission to view this presentation. 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