IMPORTANCE OF ORGANISINGI

i)Benetits oF Specialisation

)0rqanising leads to systematic allocalion ofjobs

am bngst +he uoak fore educng fhe noKloadd and

nhaindng he pvduchvihy
bRepetitive pesfoxmanne of a task makes ulokex
ore expertiene and leads fo Specialisation

ii) Clanthy in hloaking relationshups

a) he process ot 0sganising clariies the authonty of

he manaqess of diferent depaztments
J

and fos tohich

bEach manaqex Knows whom Ccan he bsdex
tasks This minj mises he (onftict and Confusion about the
authonts to be exexcisecd by an Individual.

ti) Opthmum uhiugation of esouxes :

aDrganjsing leads to the popez usage of all matenal,

nancial and human esouxtes
avoicls Oveslapplng of woak
b)Proper assignment oE |obs id
and avoidanie 'bf dupuaation of wosk helps
he dastoge of
revenhng confuSion and minimisinq
DOSousCEs and effodts
ive) Adaphion to change

yOsganiging heps the entexpaise to adjust itsetf as pe

changinsumstantes by suiteably mõdifuing he
0qanisahonal stoucture ike duties, ights nd
Tesponsibiuhy of employee-

b Ttpaovldes stability to the enteapalse as it can then

Continue to Suovine

Effective administration
a) Osgoanising p30vicdes a cleas descaipton of jobs and
metated duties. caaity in working veationships enables
Paoper execuho Of woak
b) Management OF entepaise becomes eas4 and. baings
ebjecvenes In administration

vi) Development of Pevsonnel

a)Manaqedal pexsonnel ave tained to acquise wide

experience In div exse activrties
thsough dlelegatton
Of authomts
peleqation all0ws the managexs To veduce heir workload
by ossigning Toutine johs to lheis subosatinates

b) t gives them time fo Concentsate on

explose hew aveas por gso wth
strategic isses nd

Deleqaion also develops in he Suborclinate he abiuts to deal

effectively wrth challenqes and helps themto vealuse
heix full potential
 Dale

Vii) expansion and qsowth

a) Drganisinq helps in the qtowth and diversification of
an
entespaise by enabling t to deviate foom
existing
nosns and take up hew
challenqes
Tt allous a business entespaise to add moxe
job posiHons,
depasments and even divexsilutheix produc ines

C) New geoqsaphical tesntdaies can be added to cusrent

Aeas OE Opesahon which wil1 help to inccease Customex
base, sales and psDfit

Decen tralisoation
Ttefess to the Systematic deleqahon
03 dispeasal Df
Outfhoity at all levels of manaqement and in all depaatments
Df the oxqunisation

Impostance of Decentsalisation

i)Develops initiative among subbadinates

a) Decentralisation helps to podmote self-reianue
Ond ton Hdence among st he
Suborclinates his is
when lower
managerial Levels learn to depend on
thes own judgement

b) It also helps in
developing solutions fox he vamous
p blems fhey Come acDSS nd have potenhal to
beCome dynamc Lecadess
 Develops manaqerdal talent fox the frture -

a) Decentoalisation gives sulbovdinates a dhance to pwve

Hheia abilities and creates a vesesvoir df qualifie.d
PeBsonnel.

b) It aso hetps to iclent fy those who may hot be suctessful

in
assuminq qveatex responsibiuhy
t is an oppotunity for tsained pesonnel fo use i s
talent in mal efe situationsS

i). Ruick decision- Makung

aTn Centsalised organisation,every decision is laken by tp
management,tne tlow Of Infonmation is slow as it has to
go through vaaious levels This educesthe Speed. 0f
decision making

b Tn a decentsalised 08ganisaion, decsions aae taken

at evels which are nearest to the points 0t action andd
there is no requlre ment fox appoD val Faom many levels
me psoCess is much fastes

Relief *o top- manaqement:

iv)
a)Decentralisation is. vequuved to veduce the busden
Df top execufives when it ncnecSes due td ihcvease
In h e sige and Con plex1hy of the OaganisatHon

b I n a decentralused o xganisation,top ezecuti ves have

enough time to plan ahead,develop new shsategies
and conentsate on (ooxctination and contro
v) faciutates qrowth
a) Decenwalisahion awavds qveater autonomy to the lowex
Levels of manaqement as well as divistonal 07 depastmenta|
heads

b)This allows hem to funcfion îna manner best Suitecl

to theix olepaxtment and fostess a sense Of Competiion
amongsbE he depasnerts

vi) Better Consol

a) Decentoalusation makes it possible to evaluate pexfovmarce

at each level and he deposments can be individually
held cac.countable ho heis desults.

b). feedbaclk from all levels helps to anayse vaziantes

and impoDve opesations

c) In decentoalisation,one of the challenge sthe

accountab1uhs
of pesfbo mance In vesponse fo his
challenqe, bette
Contsol Systems ave beinq evolvecd like bnlance ScO ve Casd
Delegahon
Lmpor tance ot
Delegatton
i) Effective manaqemen
a Reteqa hon of authonhy pemils a managey to share his
wLOokLoadl uitm his Suboudinates

b B passinq Some uloak to Hhe Suboxdinales he managexs

aveable to function moe ekji centtu as hey get more Hime
fo Concentsate on mpoatant mattess
i) Employee Development
a)Deeqahion helps to develop those skils which uil
enabe them to perform Complex tasks and asSume
Hhose yesponsibiuies which uill impDve theis
Cavee pwspec

b) It helps employees by pxovidin them hante to use

then skils, qain expeience and. develop-themselves
to higher poslHions

Motivation of Employees

a). Deleqation helps in devetoping h e talents of h e

employees It also has psyy ehd oqical benefits-

b)when a superiox entousts a suboxdiate uith

a task, its
b not meely the shaaing of wotk but Involves taust on the
ioos p a t dF bulds the sei f-esteem Dt an employee

and împzoves hls Contidente.

 iv) failitahon of qrowth'-

Deleqation helps in he expansion 8f an oxqanisa1oOn

a) to take up eadunq
oy prDviding a veady employees
vemtures.
positiOns in new

oA0e able td jay

b) Tained and expeTiened employees
Of neuw projecs by
Siqnificant voles in h e launch
Tecevedd tom
Showcasing the expesiene Lehat hey
previous pvjects

V) Basis Of Manaqement hiercocny

a). Deleqation Of authomhy eStabluishes supeaior-Suboxdinate

Of manaqement
velationships which a e the basis of hiezaschy

b) I t Ís the deqree and flow ot aufthoiy which detemines

who has fo vepoat to Lahom.

vi) Bettes Coorclination

a) 6lemens of deleqation help to defime the pouers, duties

andans iwesa blluhy to the vasious positions in an oxaanisation

b) This helps to avoid over lapping of duties and dupliccation oF

effoxts as it qives a cleax pictuve of the woak benq
done at vadious levels

c) Such elaihy help in developing and mauntauning

effective coosclination amonq depaotmenBs, leveLs and .
Punctions Of manaqement
 ELEMENTS OF DELEGATION-

i)Authoaity
aAuthont vefess to the Of a n
iqht inclividual
to
Commoncl his Subosdinates andtake action uuthin
h e scOpe of is postion

b I n the fomal O8ganisation the extent of authoity is

hianes at the top manaqement levels and vecduces
S we go doun h e co posatë ladder

C).Authozity flows foom topto bottom It helps to maintai

Oxder i he oxqanisation by aivinaq the managex h e
igh to qive dnections to-the ulooKfoste undes then

o) Authony detezmines the superlox Subordunate

elationshup Where supeaiox Communicares hü decisioh
tothe Suboxdinctte,

li) Res ponSibiuts-

a) Responsibiuny is the 0bligation of a suboxdinate to
pooperly pertorm he assigned cluty

b)
b) Res ponsibi uhy flows upwards i.e, a subovcinate uuu
always be. besponsible to bis.supeaiox

C)When an empoyee is given es ponsi biit for a job he

musE also be qiven -he degxee df authothy nece ssay
tD Casry it out.

d) fo effective he authoity granted must be

delegation
Complemented uUth he aSsiqned vesponsilbiuty.
 No

e).TE authoils qvanted is more than responsibiluty,it ma

Jead to misuse of authoaifs and. if vesponsibitty asslqned
IS move h a n authoaihy it may make a person Ineftecive

Accountabiuls
a) Accountalbiuhy implies being answexable fosx the tinal
butromne
b)Onte authomty has oeen deleqated and responsibiüly
aCcepted, One cannot dey accountabitity It cannot be
deleqated andHous upwards
C The manaqex has Ho ensuxe the poper dischavqe Oft duties
by his suboxdinates I t s qenevally entoYCed thaough
equlas feedbatk On he extent Of woak accomplished

d) In Concusion, it can be stated that while

authoaity is
delegated, vesponsibllihy is assunmed, accountabili is
Imposed.