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    Q1. Discus between delegation and decentralization. Cite some

    of the important obstacles to effective delegation?

    Answer:

    Delegation is the process by which authority passes frommanager to his subordinate. Delegation is the only solution to

    cope with the increasing work load of managers as the

    organisation grows. Because of the constraints of time and

    ability, a manager cannot perform all the tasks himself. So he

    delegates certain of the tasks to the subordinate and gets them

    done.

    Delegation and decentralization of authority are closely related.

    Decentralization is an expansion of delegation of authority.

    While in delegation authority is transferred on one to one basis

    from the superior to subordinate, decentralization of authority is

    broader in scope and involves the transfer of authority in the

    organisation context from top to lower levels of management in

    the hierarchy. Thus the greater amount of authority delegated

    throughout the organisation, the more decentralized the

    organisation is.

    Basic points of difference are as below:

    Basis of

    Difference

    Delegation of

    Authority

    Decentralization

    1. Nature Delegation of authority

    is

    inevitable for every

    organization becausemanagers have to

    delegate authority to

    their subordinates in

    order to get the work

    done. Thus work

    cannot

    proceed in its absence.

    It is not necessary to be

    found in every

    organization because it

    is not essential thatsenior officers

    distribute

    their authority

    throughout the

    organization. Thus,

    work

    can proceed in its

    absence.

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    2. Freedom in action Less Freedom

    Under this even afterdelegatingauthority,delegator has

    full control on hissubordinate.

    More freedom.

    Under this most often,the delegator looses thecontrol on his

    subordinate.

    3. Status This is a process doneas a result of divisionof work.

    This is a result of thepolicies framed byhigher officials.

    4. Scope Delegation ofAuthority depictslimited distribution ofauthority that is why itsscope is limited.

    This depicts broaderdistribution ofauthority that is why itsscope is broad.

    5. Purpose The purpose isreduction of theworkload of an officer.

    The purpose isexpansion of theauthority in anorganization.

    The advantages of decentralization are similar to the advantages ofdelegation.Unburdening of top management, improved decision making

    because decisions are made closer to the scene of action, better training,morale and initiative at lower levels and more flexibility and fasterdecision making are some advantages of decentralization.

    Importance of delegation

    1)Effective Management: Effectiveness means successful

    accomplishment of an objective. Delegation of authority reduces theworkload of a manager. Managers who practice delegation of authority aredefinitely better decision makers than those managers who do not delegateauthority. The former ones get the benefit of the skills of theirsubordinates. This situation eases the attainment of objective.

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    As a result, the effectiveness of managers is improved.

    objective. As a result, the effectiveness of managers is

    improved.

    2)Employee Development: The mental growth of a persontakes place only when he has authority to take decisions.

    The process of delegation of authority provides the

    authority to take decisions to subordinates. With the given

    authority, managers take decisions contingent to the

    situations. As a result, in future they become more able to

    take extra responsibility.

    3)Motivation of Employee: In the process of delegation ofauthority, both authority and responsibility are delegatedto the subordinates. This situation provides liberty to workand take on part of subordinates. Gaining through this,they exhibit their talent and skill. With better performance

    the subordinates create a niche for themselves in theorganization. Consequently, they get job satisfaction andfeel motivated to perform ever better.

    4)Facilities of Growth: Delegation of authority does not onlydevelop only one person or division but facilitates thedevelopment or organization as a whole. As adequatenumber of able employees is available in an organizationto take decisions Expansion, Modernization andDiversification of a business can be done with fullconfidence.

    5)Basics of Management Hierarchy: Management hierarchy

    is inevitable to run a business organization successfully.Only because of this hierarchy, the superiors andsubordinates they come in contact with each other and getan opportunity to understand one another. This hierarchy is

    established through the process of delegation of authority.Under this, authority flows from top level to the bottomlevel. As a result,

    senior and subordinate links are established from top to bottom.

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    Better Coordination: Delegation of authority is a process to establishrelation among responsibility and accountability. Through this, employeesget clarification with regard to their powers, duties and accountability forwork performance. Thus, a clear picture is delineated for all the jobs

    performed at various levels, which automatically establishes bettercoordination, the advantage of this is that neither duplicity nor overlappingof work takes place

    Importance of Decentralization

    1)Develops Initiative among Subordinates: Under decentralization,authorities are delegated in large amount. Authority is a kind ofpower which compels a person to think/contemplate or to do

    something new. This inculcates in him the ability to take initiative.

    2)Develops Managerial Talent for Future: Under decentralization,decision making authority is given even to the lower level managers.In this way, by getting opportunities to take decisions. Knowledgeand experience of all levels of managers increases. This developstalent in the managers to bear extra responsibility in the future.

    3)Quick Decision Making: The burden of all managerial decision is nomore confined to some limited people but is distributed among many

    people. This not only leads to quick decision making but also resultsin better decision making. All the people are well awared of theproblems faced by their unit or division and for this reason they arecapable of taking the best possible and quick decisions.

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    4) Relief to Top Management: Under decentralization authority related totake monotonous decisions is delegated to the subordinates. As a result,top management relieves itself from trivial affairs and consequently theworkload is quite reduced. This saves their valuable time which is then

    utilized to brighten the future of the organization and to establishcoordination.5) Facilitates Growth: Under decentralization, full liberty is given to the

    subordinates to take decisions. This situation inculcates a sense ofresponsibility among the subordinates. Thus, they make effort toachieve/show better results. This thinking gives origin to departmentcompetitiveness. In such a situation, everybody tries to perform betterthan the others. As a result, development of an organization is made

    possible.

    6) Better Control: Decentralization helps to decisively evaluate the workperformance at all levels and even makes possible to fix accountability.Contribution of every department for the attainment of an objective can

    be ascertained. This situation is just like a challenge for everydepartment. Management adopts a good controlling policy to face thischallenge

    Factors influencing decentralization are as below:

    1) The cost and impact of the decisions: The greater the cost involved &greater its impact on the organisation, the more likely that the decisionwill be made at the upper levels.

    2) Company Size and rate of growth: As company size increases, need fordecentralization increases.

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    3) Philosophy of top management: Some firms are highly centralizedwhereas others are highly decentralized depending on the character and

    philosophy of the management. The attitude, leadership style and beliefof the top management have a bearing on the degree of decentralization.

    4) Philosophy of the subordinate manager: The desire by the subordinatemanagers for independence and their willingness and initiative to assumeincreased responsibility can make the higher level think ofdecentralization.

    5) Organisation Environment: The type of technological developments,market competition, socio cultural and political factors plays a dominant

    role in deciding the structure. In fast changing environments as of today,companies are easily choosing decentralised structures that facilitatequick responses to the environment.

    Obstacles in effective delegation are as follows:

    A) Superiors resistance to delegationi) The I can do it myself fallacy: some managers always suffer from

    a feeling that they alone can do the job better. Consequently twothings happen. First spending time on a task that his subordinatecould perform means the manager may not have enough time forother duties like policy formulation & supervision. Secondly unlessthe manger allows subordinates to attempt new tasks, they will not

    be able to develop their skills. Thus by insisting on doing thingsthemselves managers often fail to meet their responsibility fortraining and growing subordinates for promotions for higher levels.

    ii)Lack of ability to direct: some managers become so involved inday to day operations that they neglect the broader picture. Unable

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    to understand the long term perspective of the work flow, they donot fully realise the importance of distributing work amongsubordinates. Some managers deliberately do this due to their lackof confidence in their supervisory abilities.

    iii) Lack of confidence in subordinates: lack of trust and confidence onsubordinates abilities and skills make the manger reluctant todelegate. As a result, subordinates lose initiative and frequentlyseek the guidance of the bosses to know whether they are doing thethings correctly.

    iv) Aversion to risk: Superiors fear that his subordinates may outsmarthim and eventually the latter may become a potential threat to his

    position.

    v) Absence of selective controls: when certain duties are delegated tosubordinates, the superior has to ensure proper controls in the formof feedback about performance. It gives the superior the securityof knowing the problem before much damage takes place. Ifcontrols are not adequate and efficient, manager has good reason toavoid authority delegation.

    vi) Lack of time: Delegation is time consuming. In particularsignificant time may be sent in:

    Identifying what is to be delegated Establishing appropriate control/selective procedures Briefing and training the subordinates

    Delegation is like a capital investment; time spent setting it up mayachieve substantial dividends-only in future. If the managers dont

    carefully think through the pattern of delegation, it may backfireand discourage them from further attempts.

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    vii) The indispensable employee: Sometimes managers want todeliberately seek to make themselves Indispensable. This may be ameans of managers dealing with their fear of job security. Theeffective manager should have developed systems and staff

    abilities so that people can cope in his absence. A poor managermay be even glad that things did not go well in his absence andmay even publish that fact.

    B)Subordinates Resistance to delegationi) The subordinates find it easier to ask the boss what to do rather

    than taking the initiative themselves

    ii) The subordinate fears criticism for mistakes. Since greaterresponsibilities increase the chance of making mistakes, thesubordinates for the sake of security avoid additionalresponsibilities.

    iii) The subordinate may lack the information and resources needed todo the job successfully .So they end up being in confusion.Sometimes subordinates are given responsibility without authority.

    iv) The subordinate believes he or she has more work than he or shecan do. For fear of over burdening himself he may not show anyinterest to accept new responsibilities.

    v) The subordinate lacks self confidence. Added to that the fear thatthey will get into trouble in the event of failures puts them in a stillworse situation

    vi) The subordinate is not offered any incentives or benefits in theterns of pay rises, importance and status for assuming additionalresponsibilities.

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    Q3. Construct a diagram depicting the formal organisation of an enterprise oractivity with which you are familiar. How does this organisation chart help orhinder the establishment of an environment for performance?

    Answer:

    Attached is an organisation chart of a company XYZ Ltd. which is a distributorof Audiovisual and Hospitality Systems.

    Responsibilities of each are as follows:

    Management

    A. Chairman:_

    a) Determine the company's vision and mission_ to guide and set the pacefor its current operations and future development.

    b) Determine the values to be promoted throughout the company.c) Determine and review company goals.d) Determine company policies

    B. Director:

    a) Review and evaluate present and future opportunities, threats and risks inthe external environment and current and future strengths, weaknessesand risks relating to the company.

    b) Determine strategic options, select those to be pursued, and decide themeans to implement and support them.

    c) Determine the business strategies and plans that underpin the corporatestrategy.

    d) Ensure that the company's organisational structure and capability areappropriate for implementing the chosen strategies

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    Marketing Department:

    Marketing Manager:

    a) Market & promote company products & services through directmarketing & meeting potential clients.b) Establish Marketing Plan with budgets on yearly basisc) Participate in achieving Company sales targetd) Responsible for developing and maintaining marketing strategies to meet

    organizational objectives

    e) Oversees all marketing, advertising and promotional activitiesBring the company closer to people and raise public awareness of its

    products & services.

    f) Supervise website, brochures, pamphlets company profile.Proactively establish and maintain effective working team relationshipswith all departments

    Marketing coordinator:

    Back Office support for Marketing Manager.Managing submittals and correspondence with customers

    Accounts Department:

    Finance Manager:

    Manages the organizations financial administrationDeveloping complex finance models and forecasting;Responsible for the accounting team

    Assessing the financial implications of new or existing ventures;Preparing accounts and reconciling balance sheets;

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    Overseeing budgetary control;Ensure proper and healthy cash flow;

    Negotiation and relation with banks and other financial institutions to arrangefinance requirements and ensure timely settlements;

    Take measures to reduce overall outstanding with customers by improvingcollectionsManaging the cash centrally and supplying the needs of various departmentswithout keeping idle cash at many points.Investment of funds available

    B. Chief Accountant:

    Responsible for day to day finance and accounts operation.Preparation of monthly management accounts, including profit and loss and

    balance sheets.Responsible for timely monthly consolidated financial statements, payments,cash-flow management reporting.Review & approve payment vouchers & journal entriesPerform cash flow forecasting, budgeting and working closely with theoperations and project teams in analyzing margins, variances and cost analysis.Issue project cost reports for review and approval.Develop and maintain internal control and effective accounting system and

    policies.

    C. Accountant

    Maintain the Financial Accounts of the company and to present the true P&LStatementMaintain the Accounts Payable & ReceivablesArrange finance for various projectsFinancial software data administration and entry

    Follow up of payment collectionPreparing salary sheetsImplement company quality systemPrepare reports (monthly, annual etc.)

    Procurement Department

    Procurement Manager

    Place orders with suppliers for all required products/ services.

    Prepare material status reports.

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    Prepare projects requirements & secure the needs for each project.Establishing foreign and domestic suppliers.

    Negotiating the lowest pricesReview and check on inventory levels and maintain minimum needed stock

    Prepare projects drawings/submittals/correspondenceCoordination with freight forwarders, courier agents etc in ensuring economicaland speedy shipment.

    Procurement Asst. will assist the procurement manager to accomplish all theabove

    Customer Relations Department

    Receive customer complaints and co-ordinate with theconcerned staff to resolve the problem.Contact clients after every service provided to measure satisfaction.Arrange meetings with unsatisfied clients and coordinate suitable remediesPrepare and carryout customer satisfaction surveys and statistics accordingly.Implement Company Quality Management System.

    Operations Department:

    A. The Operations Manager:

    Follow-up & Supervision of administrative operations.Follow-up of logistics and warehouse operations.Follow-up of HR activities.Internal auditing of company accounts.Follow-up of the Quality Management System.Administer the Company ERP software

    B. HR Coordinator

    Employment(Induction& Orientation, placement, recruitment & selection )Internal Mobility (Transfers, promotions, demotions).Compensation (job evaluation, wage and salary administration, incentives,

    bonus, fringe benefits).Social security measures (compensation to those employees who involve inaccidents, retirement benefits, medical benefits).Provide training and developmental programmes

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    Asst. HR coordinator will assist the HR coordinator in accomplishing the abovetasks.

    C. Admin HR coordinator

    Responsible for Employees affairsTo maintain the timesheet for the employeesMonitor the attendance system and update the databaseFollow up staff problems and propose remediesManage deliveriesArrange medical/health insurance for staffArrange Duty mission for external trainingImplement Company Quality Management System

    D. Secretary

    Responsible for company correspondence.All travel arrangements, booking of tickets, hotels and cars for staff & directorsAnswering of telephone callsDialing of international calls for staffPreparation of meeting agenda, timing and minutes.

    E. Warehouse Supervisor:

    Ensure accurate coding, labelling and recording of materials and equipment andtheir movements.Proper arrangement of stocks.Security arrangements to ensure stock safety against damage.Only accept and store materials inside the warehouse that have conformed withthe correct specifications from the Purchase Order and are in good condition.Supervise all warehouse employees.

    Identify items no longer useful and arrange it to be segregated in one area andthey must be visibly marked o (i.e. Non-InventoryDefective, Damaged,Obsolete etc.)Coordinate with Project Engineers about the reserved materials that need to bedelivered.Ensure that materials are being received by authorized representative of thecustomer through evidence of duly signed delivery notes.Verify the warehouse stock ledgers by performing periodic cycle countsthroughout the year or as instructed by the Inventory Controller.

    F. Inventory controller/Asst. Inventory Controller

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    Supervises, instructs, and trains clerical office and field employees in the use ofa computerized inventory system.Maintain a well-kept warehouse inventory stock ledger on ERP system and

    organize well-kept and duly authorized inventory-related documents. Thespecific duties in ERP system involve but not limited to the following:

    Enter and post purchase receipt of materials.Enter and post delivery of materials for projects.Enter and post stock transfers between internal locations.Enter and post items requested for demo.Enter and post inventory adjustments for missing, obsolete, damaged or stolenitems.

    Coordinate & follow up the item discrepancies with the Procurement Manager,Payable Accountant and Senior Project Coordinator until all issues are closed orresolved.Coordinate with the Warehouse Supervisor about the physical inspection forquantities, models, and condition of the ordered materials being received.Send to Accounts Department all copies of duly signed Purchase Receipt alongwith suppliers invoice and other shipping documents of received materials forvalue entry on ERP system.Send to Accounts Department all supported and duly signed delivery notes for

    verification and billing purposes.Review and reconcile warehouse stock ledgers by performing samplingtechniques through periodic cycle counts or also known as test counts, in

    assistance of the Warehouse Supervisor, throughout the year rather than by acomplete annual stock count of the entire inventory.

    Hospitality Department

    A. Manager, Hospitality systems

    Manage all aspects of the projects done by the Hospitality Division.Supervise if necessary some installations to ensure the smooth running of the

    project.Plan along with clients resources required by each project.Train the division staff on selected topics.Promote and encourage team work within the division.Coordinate all Projects executions, material ordering, project scheduling,internal/external resource booking, co-ordination with clients and maintain all

    projects documentation.

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    Receive and direct all support calls and maintain Job Card Recordsfor smallproblems, carry out first-line support over the phone.Ensure invoicing and payment collection with Accounts

    Review all quotes related to Hospitality systems

    B. Sales Manager:Sell and Marketing of Hospitality products.Supervisory responsibility of the Sales Executives.Specify company product and services in projects with clients and consultantsBring in new types of low current business to the companyEnsure proper and adequate market segment coverage by employing the rightnumber of Sales Executives.Prepare sales figures and statistics

    C. Sales Executive

    Sell and Marketing of Hospitality products.Follow up with major account activities between clients on the quotation given.

    D. Head of support

    Manage all aspects of the service done by the Support team.Supervise if necessary some installations to ensure the smooth running of the

    project.Set-up maintenance plans, strategies and routine visitsEstablish service contracts with clientsEnsures availability of spare parts & place request for order.Manage support calls & issuesSupervise support technicians & Support EngineersManage workshop and toolsTrain clients representatives on installed systems.

    E. Sr. Support Engineer

    Installation and support of hospitality software and hardware EngineerAttend to clients support calls and resolve system faultsTrain clients on the usage of product.Train other staff members on selected topicsImplement company Quality Management System

    F. Support Eng/ Asst. Support Engineers

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    Set-up maintenance plans, strategies and routine visits.Establish service contracts with clients.Ensures availability of spare parts & order themManage support calls and issues

    Manage workshop and toolsInstall & program systemsTrain clients representatives on installed systems.

    G. Technicians

    Troubleshooting of electronic equipment (software/hardware).Installation & Maintenance of Hospitality products.Keeping stock of all different product spareAttending to customer service call within 24 hours.

    Audio Visual Department

    A. Manager, Audio Visual Systems:

    Manage a team of sales & technical staff of Audio Visual systems.Sell & promote company products & services through direct marketing,specifying the products in various projects and meeting potential clients.Build a strong team of Sales and Design Engineers.

    Ensure payment collection if a problem exists.Propose new activities & products.Implement Company quality system.Train Company staff on selected topics.

    B. Sr. Design Engineer/ Design Engineer:

    Prepare designs, quotes, and proposals of AV systems.Prepare projects BOQ and cost calculationsPrepare submittals and systems bindersPrepare projects documentation, manuals & drawings

    C. Sales Manager:Sell and Marketing of Audiovisual products.Guide the Sales Team to prepare quotes, designs, proposals, and submittalsdepending on the type of project/client., in-line with the company formats &

    professionally.

    Specify company product and services in projects with clients and consultants

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    Bring in new types of low current business to the companyGuide Sales Team to follow up quotes with clients.Ensure proper and adequate market segment coverage by employing the rightnumber of Sales Executives.

    D. Sales Executive

    Sell and Marketing of Audiovisual products.Follow up with major account activities between clients on the quotation given.

    E. Sr. Project Coordinator:

    Follow up and monitor the progress of all company projects from start tocompletion & ensures optimized projects implementation.Maintain & file complete documentation for every project including drawings &software programs.Confirm projects progress through site visits.Prepares project requirements and planning.Implement Company Quality System.Prepare reports (monthly, annually etc).Train Company staff on selected topics.

    F. Project Engineer

    Site supervision and co-ordination before, during, and after installation.Request to order required equipment/systems for projects.Program and commission installed systems.Supervise Technicians.Prepares project requirements and planning.Train clients representatives on installed systems.Implement Company quality system.Train Company staff on selected topics.

    Prepare projects documentation, manuals & drawings

    G. Site Technicians:

    Installation & Maintenance of Audiovisual, Security & Control Systems.Troubleshooting of electronic equipment (software/hardware).Implement Company quality systems.Prepare reports (monthly, annual etc).

    This organisation chart enables the employees to understand:

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    Chain of Command: As organisations activities are divided into departments,coordination becomes necessary for integrating individual and group efforts soas to achieve the goals. Such coordination is achieved through systematic

    placement of position and duties. This type of arrangement of various positions

    in an orderly way is called chain of command. It defines the authority of thepeople. It also suggests the routes through which information flows in theorganisation.Unity of Command: The organisation chart clearly indicated who should reportto whom and who should give orders to whom.Span of control: Span of control refers to the number of subordinates that reportdirectly to a manager.Organization chart provide both employees and individuals outside theorganization with a "snapshot" picture of it's reporting relationships, divisionsof work, and levels of management.

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    Self Declaration

    I declare that this assignment submitted by me is not a verbatim / photo staticcopy from the website/books/journals/manuscripts

    Signature of the student:

    Countersigned :

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    2.

    Freedomin

    Action

    Less Freedom

    Under this even afterdelegating

    authority,delegator has

    full control on his

    subordinate.

    More freedom.

    Under this most often,

    the delegator looses the

    control on his

    subordinate.

    3. Status

    This is a process done as

    a result of division of

    work.

    This is a result of the

    policies framed by

    higher officials.

    4. ScopeDelegation of Authority

    depicts limited

    distribution of authority

    that is why its scope is

    limited.

    This depicts broader

    distribution of authority

    that is why its scope is

    broad.5. Purpose The purpose is reduction

    of the workload of an

    officer.

    The purpose is

    expansion of the

    authority in an

    organization.

    The advantages of decentralization are similar to theadvantages of delegation. Unburdening of top management,

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    improved decision making because decisions are made closer to

    the scene of action, better training, morale and initiative at lower

    levels and more flexibility and faster decision making are some

    advantages of decentralization.

    Importance of delegation1)Effective Management: Effectiveness means successfulaccomplishment of an objective. Delegation of authority

    reduces the workload of a manager. Managers who

    practice delegation of authority are definitely better

    decision makers than those managers who do not delegate

    authority. The former ones get the benefit of the skills of

    their subordinates. This situation eases the attainment of

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    objective. As a result, the effectiveness of managers is

    improved

    a.Sell and Marketing of Audiovisual products.b. Follow up with major account activities between clients on

    the quotation given.

    E. Sr. Project Coordinator:

    a. Follow up and monitor the progress of all company

    projects from start to completion & ensures optimized

    projects implementation.b. Maintain & file complete documentation for every project

    including drawings & software programs.

    c. Confirm projects progress through site visits.

    d. Prepares project requirements and planning.

    e. Implement Company Quality System.

    f. Prepare reports (monthly, annually etc).

    g. Train Company staff on selected topics.

    F. Project Engineer

    a. Site supervision and co-ordination before, during, and afterinstallation.

    b. Request to order required equipment/systems for projects.

    c. Program and commission installed systems.

    d. Supervise Technicians.

    e. Prepares project requirements and planning.

    f. Train clients representatives on installed systems.

    g. Implement Company quality system.

    h. Train Company staff on selected topics.

    i. Prepare projects documentation, manuals & drawings

    G. Site Technicians:

    a) Installation & Maintenance of Audiovisual, Security

    & Control Systems.

    b) Troubleshooting of electronic equipment

    (software/hardware).

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    c) Implement Company quality systems.

    d) Prepare reports (monthly, annual etc).

    This organisation chart enables the employees to understand:

    Chain of Command: As organisations activities are dividedinto departments, coordination becomes necessary for

    integrating individual and group efforts so as to achieve

    the goals. Such coordination is achieved through

    systematic placement of position and duties. This type of

    arrangement of various positions in an orderly way is

    called chain of command. It defines the authority of the

    people. It also suggests the routes through which

    information flows in the organisation.

    Unity of Command: The organisation chart clearlyindicated who should report to whom and who should give

    orders to whom. Span of control: Span of control refers to the number of

    subordinates that report directly to a manager.

    Organization chart provide both employees and

    individuals outside the organization with a "snapshot"

    picture of it's reporting relationships, divisions of work,

    and levels of management.

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    Self DeclarationI declare that this assignment submitted by me is not a

    verbatim

    /

    photostatic

    copy

    from

    the

    website/books/journals/manuscripts

    Signature of the student:

    Countersigned :

    Signature of the faculty concerned:

    Q1. Discus between delegation and decentralization. Cite some

    of the important obstacles to effective delegation?

    Answer:

    Delegation is the process by which authority passes from

    manager to his subordinate. Delegation is the only solution to

    cope with the increasing work load of managers as the

    organisation grows. Because of the constraints of time and

    ability, a manager cannot perform all the tasks himself. So he

    delegates certain of the tasks to the subordinate and gets them

    done.

    Delegation and decentralization of authority are closely related.Decentralization is an expansion of delegation of authority.

    While in delegation authority is transferred on one to one basis

    from the superior to subordinate, decentralization of authority is

    broader in scope and involves the transfer of authority in the

    organisation context from top to lower levels of management in

    the hierarchy. Thus the greater amount of authority delegated

    throughout the organisation, the more decentralized the

    organisation is.

    Basic points of difference are as below:

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    Basis of

    Difference

    Delegation of Authority Decentralization

    1. Nature Delegation of authority is

    inevitable for everyorganization because

    managers have to

    delegate authority to

    their subordinates in

    order to get the work

    done. Thus work cannot

    proceed in its absence.

    It is not necessary to be

    found in every

    organization because it

    is not essential that

    senior officers distribute

    their authority

    throughout the

    organization. Thus, work

    can proceed in its

    absence.