P. 1
Chapter 14

Chapter 14

|Views: 21|Likes:
Published by denish gandhi

More info:

Published by: denish gandhi on Nov 13, 2009
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PPTX, PDF, TXT or read online from Scribd
See more
See less





Chapter 14

Power and Authority

Features« Delegation of Authority
‡ Prescribes the limits ‡ Dual characteristics ‡ Delegated authority can be enhanced, reduced or withdrawn ‡ Recovered fully when individual moves from position ‡ Specific or general

Steps in Delegation
‡ ‡ ‡ ‡ Determination of Results Expected Assignment of Duties Authorisation for Action Creation of Obligation

Factors determining degree of Decentralisation
‡ ‡ ‡ ‡ ‡ ‡ Size of Organisation History of the Organisation Management Philosophy Availability of Managers Pattern of planning Control Techniques

Factors determining degree of Decentralisation
‡ Decentralised activities ‡ Rate of Change in organisation ‡ Environmental influence

Rationale of Centralisation
‡ ‡ ‡ ‡ ‡ ‡ Personal leadership Integration of efforts Quick decision Communication and control easier Avoiding duplication Uniformity in action

Rationale of Decentralisation
‡ Reduces burden of the top management ‡ Facilitates growth and diversification ‡ Good philosophy to Motivate managers ‡ More responsibility

Rationale of Decentralisation
‡ Horizontal growth of the organisation by reducing the number of management levels and increasing the span of management ‡ More accurately on the results to be achieved

Problems of Decentralisation
‡ Create chaos in the absence of proper control ‡ Increase costs by making most units autonomous for facilities ‡ Requires high degree of selfmotivation and self-control to managers

Making Decentralisation Effective
‡ Centralised Top Policy and Control ‡ Appreciation of Concept of Decentralisation ‡ Development of Managers ‡ Competition among Units

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->