pom (1st internal matter)
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Taylor
Frederick Winslow Taylor, widely known as F. W. Taylor, was an American mechanical
engineer who sought to improve industrial efficiency. He is regarded as the father of
scientific management, and was one of the first management consultants.
Principles of Scientific Management
F irst. They develop a science for each element of a mans work, which replaces theold rule-of thumb method .
Second. They scientifically select and then train, teach, and develop the workman,
whereas in the past he chose his own work and trained himself as best he could.
Third. They heartily cooperate with the men so as to insure all of the work being
done in accordance with the principles of the science which has been developed.
F ourt h. There is an almost equal division of the work and the responsibility between the management and the workmen. The management take over all work
for which they are better fitted than the workmen, while in the past almost all of the
work and the greater part of the responsibility were thrown upon the men.
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Gantt
Harvey Bernard Gantt is an architect and politician.
A Gantt chart is a type of bar chart that illustrates a project schedule. Gantt charts
illustrate the start and finish dates of the terminal elements and summary
elements of a project. Terminal elements and summary elements comprise the
work breakdown structure of the project. Some Gantt charts also show the
dependency (i.e, precedence network) relationships between activities. Gantt
charts can be used to show current schedule status using percent-complete
shadings and a vertical "Today" line.
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Gilbreth
Lillian Moller Gilbreth, was one of the first working female engineers holding a PhD.
She is arguably the first true industrial/organizational psychologist. She and her
husband Frank BunkerGilbreth, Sr. were pioneers in the field of industrial
engineering. Their interest in time and motion study may have had something to
do with the fact that they had an extremely large family.
A time and motion study would be used to reduce the number of motions in
performing a task in order to increase productivity. The best known experiment
involved bricklaying. Through carefully scrutinising a bricklayer's job, Frank Gilbreth
reduced the number of motions in laying a brick from 18 to about 5. Hence the
bricklayer both increased productivity and decreased fatigue.
TheG
ilbreths developed what they called therbligs ("therblig" being "G
ilbreth"spelled backwards, with a slight variation), a classification scheme comprising 18
basic hand motions. 1920 Frank B. and Lillian Gilbreth develop their time and
motion studies. the Gilbreths showed the importance of the total working
environment by reducing unnecessary motions.
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Fayol
Henri Fayol was a French mining engineer, director of mines and management
theorist, who developed independent of the Scientific Management a general
theory of business administration, also known as Fayolism. He was one of the most
influential contributors to modern concepts of management .
Fayolism is one of the first comprehensive statement of a general theory of
management, developed by the Fayol. He has proposed that there are five
primary functions of management:
1. planning,
2. organizing,
3. commanding,
4. coordinating, and
5. controlling.
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FayolFayol also presented with 14 principles of management.1. Division of work. produces better work with the same effort.
2. Authority and Responsibility. authority is sought after where as responsibility is feared.
3. Discipline. obedience to authority, observance of the rules of service and norms of performance, respect for agreements, respect for superiors etc.
4. Unity of Command. one superior only.
5. Unity of Direction. complete identity with individual and organizational goals.6. Subordination of Individual interest to general interest. personal gratification to be given
back seat and general interest to be given priority.
7. Remuneration. should be fair, that fosters high morale and increases efficiency.
8. Centralization. balanced degree of centralization and decentralization for optimumutilization of resources.
9. Scalar Chain. orders should pass through proper channels of authority. In case of emergency authority may be short circuited for swift action. (gang plank)
10. Order. The principle of right place for everything and for every man.
11. Equity. fair treatment to all.
12. Stability of tenure of personnel. job security.
13. Initiative. freedom to think out and execute a plan. Innovation.
14. Esprit de Corps. implies team spirit (union is strength) harmony & unity
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In the 1930s Max Weber, a German sociologist, wrote a rationale that described thebureaucratic form as being the ideal way of organizing government agencies.
Max Weber's principles spread throughout both public and private sectors. Even thoughWeber's writings have been widely discredited, the bureaucratic form lives on.
Weber noted six major principles.
1. A formal hierarchical structure
Each level controls the level below and is controlled by the level above. A formal hierarchy isthe basis of central planning and centralized decision making.
2. Management by rules
Controlling by rules allows decisions made at high levels to be executed consistently by all
lower levels.3. Organization by functional specialty
Work is to be done by specialists, and people are organized into units based on the type of work they do or skills they have.
4. An "up-focused" or "in-focused" mission
If the mission is described as "up-focused," then the organization's purpose is to serve thestockholders, the board, or whatever agency empowered it. If the mission is to serve theorganization itself, and those within it, e.g., to produce high profits, to gain market share,or to produce a cash stream, then the mission is described as "in-focused."
5. Purposely impersonal
The idea is to treat all employees equally and customers equally, and not be influenced byindividual differences.
6. Employment based on technical qualifications
(There may also be protection from arbitrary dismissal.)
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Barnard
Chester Irving Barnard was an American business executive, public administrator, and
the author of pioneering work in management theory and organizational studies.
His landmark 1938 book, Functions of the Executive, sets out a theory of
organization and of the functions of executives in organizations.
Barnard's classic 1938 book Functions of the Executive discusses, as the title suggests,
the functions of the executive, but not from a merely intuitive point of view, but
instead deriving them from his conception of cooperative systems.
Barnard summarized the functions of the executive as follows:
Establishing and maintaining a system of communication;
Securing essential services from other members;
Formulating organizational purposes and objectives.
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BarnardAuthority and incentives
Barnard formulated two interesting theories: one of authority and the other of incentives. Both are seen in the context of a communication system grounded inseven essential rules:
The channels of communication should be definite;
Everyone should know of the channels of communication;
Everyone should have access to the formal channels of communication; Lines of communication should be as short and as direct as possible;
Competence of persons serving as communication centers should be adequate;
The line of communication should not be interrupted when the organization isfunctioning;
Every communication should be authenticated.
He described four general and four specific incentives. The specific incentives were: Money and other material inducements;
Personal non-material opportunities for distinction;
Desirable physical conditions of work;
Ideal benefactions, such as pride of workmanship etc
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Maslow
Abraham Harold Maslow was an American psychologist. He is noted for his
conceptualization of a "hierarchy of human needs", and is considered the
founder of humanistic psychology.
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Herzberg
Frederick Irving Herzberg (19232000) was a psychologist who became one of the most
influential names in business management. He is most famous for introducing job
enrichment and the Motivator-Hygiene theory.
Herzberg proposed the Motivation-Hygiene Theory, also known as the Two-factor theory of
job satisfaction. According to his theory, people are influenced by two sets of factors:
Motivator Factors Hygiene Factors
y Achievement
y Recognition
y Work Itself
y Responsibility
y Promotion
y Growth
y Pay and Benefits
y Company Policy and Administration
y Relationships with co-workers
y Physical Environment
y Supervision
y Job Security
y Salary
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Herzberg
He proposed several key findings as a result of this identification.
1. People are made dissatisfied by a bad environment, but they are seldom made
satisfied by a good environment.
2. The prevention of dissatisfaction is just as important as encouragement of motivator satisfaction.
3. Hygiene factors operate independently of motivation factors. An individual can be
highly motivated in his work and be dissatisfied with his work environment.
4. All hygiene factors are equally important, although their frequency of occurrence
differs considerably.
5. Hygiene improvements have short-term effects. Any improvements result in ashort-term removal of, or prevention of, dissatisfaction.
6. Hygiene needs are cyclical in nature and come back to a starting point. This leads
to the "What have you done for me lately?" syndrome.
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Likert
American educator and organizational psychologist Rensis Likert is best known for his
research on management styles.
Exploitive authoritative system (I)
In this type of management system the job of employees/subordinates is to abide
by the decisions made by managers and those with a higher status than them in
the organisation. The subordinates do not participate in the decision making. The
organisation is concerned simply about completing the work. The organisation will
use fear and threats to make sure employees complete the work set. There is no
teamwork involved.
Benevolent authoritative system (II)
Just as in an exploitive authoritative system, decisions are made by those at thetop of the organisation and management. However employees are motivated
through rewards (for their contribution) rather than fear and threats. Information
may flow from subordinates to managers but it is restricted to what
management want to hear.
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Likert
Consultative system (III)
In this type of management system, subordinates are motivated by rewards and adegree of involvement in the decision making process. M anagement will constructively use their subordinates ideas and opinions. However involvement isincomplete and major decisions are still made by senior management. There is agreater flow of information (than in a benevolent authoritative system) from
subordinates to management. Although the information from subordinate tomanager is incomplete and euphemistic.
Participative (group) system (IV)
Management have complete confidence in their subordinates/employees. There islots of communication and subordinates are fully involved in the decision makingprocess. Subordinates comfortably express opinions and there is lots of teamwork .
Teams are linked together by people, who are members of more than one team.Likert calls people in more than one group linking pins. Employees throughoutthe organisation feel responsible for achieving the organisations objectives. Thisresponsibility is motivational especially as subordinates are offered economic rewards for achieving organisational goals which they have participated insetting.
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McGregor
Douglas M cGregor was a Management professor at the MIT Sloan School of
Management. His book The Human Side of Enterprise had a profound influence
on education practices. In the book he identified an approach of creating an
environment within which employees are motivated via authoritative, direction
and control or integration and self-control, which he called theory X and theory Y,
respectively.
Theory x ('authoritarian management' style)
The average person dislikes work and will avoid it he/she can.
Therefore most people must be forced with the threat of punishment to work
towards organizational objectives.
The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.
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McGregor
Theory y ('participative management' style)
E ffort in work is as natural as work and play.
People will apply self-control and self-direction in the pursuit of organisational
objectives, without external control or the threat of punishment.
Commitment to objectives is a function of rewards associated with theirachievement.
People usually accept and often seek responsibility .
The capacity to use a high degree of imagination, ingenuity and creativity in
solving organisational problems is widely , not narrowly, distributed in the
population.
In industry the intellectual potential of the average person is only partly utilised .
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Making the Right Decision
How is a manager operating in an organization to know what is the right
decision when faced with questionable or unfamiliar circumstances of
doing business? Here is a suggested sequence:
± Consult the laws of both the home and the host countries
± Consult the International Codes of Conduct for MNEs ± Consult the companys code of ethics
± Consult your superiors
± Use your own moral code of ethics
± Follow your own conscience
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Social Responsibility
Includes the expectation that corporations
concern themselves with the social and
economic effects of their decisions
The only responsibility
of a business is to
make a profit
Business should anticipate
and try to solve problems
in society
The two extreme opinions related to social
responsibility ± Domestic firms
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Decision making is the selection of only one
alternative out of various possible alternatives.
Decision-making is such a function which managers
decide to accomplish in a specific situation.
DECISION MAKING
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Decision-making may be defined as an authority
consciously performs a task with the application of
his:
Intellect and wisdom
Power of judgement
Ideas and thoughts and power of anticipation
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Types of Decision Making
1. According top Importance
Major or Primary
Minor or Secondary
2. According to Purpose
Routine
Strategic
3. According to Nature And Objective Policy
Administrative
Operational
4. According to Methods
Programmed (repeating nature) Non-Programmed.
5. Matters relating to Process
Individual decision making
Group decision making.
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Decision Making Process
DECISION
IMPLEMENTATION
SELECTING
ALTERNATIVE
PROBLEM
AWARENESS
FEED BACK
EVALUATING
ALTERNATIVE
GENERATINGALTERNATIVE
DEVELOPING
OBJECTIVE
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Rational Decision Making
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Decision Making Process:
Identifying the problem
Analyzing the problem
Developing alternative solutions
Comparing the alternative solutions
Choosing the best solution
Implementing and verifying the decision.
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Basis for Decision Making:
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Programmed decisions
Decisions which are routine and repetitive, are called
programmed decision.
A programmed decision can be one in which decisions
are taken as a habit, as a clerical routine in terms of standard operating procedures
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Non- Programmed Decisions
The moderns way of handling non-programmed
decisions is through operations research, which includes
mathematical analysis, Models, computer simulation and
electronic data processing.
In the traditional way of decision- making, there is use
of judgement, intuition and creativity. There is also rulesof thumb and selection and training of executives
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Group-aided Decision Making
Analysis of the situation for decision making:
1. Nature of problem.
2. Time availability
3. Quality of Decision.
4. Climate of Decision making.5. Legal requirement.
Techniques for improving Group Decision Making:
1. Brainstorming is a technique to stimulate idea generation for decision making.
2. Nominal Group Technique is a structured group meeting which restricts verbal
communication among members during decision making process.
3. Delphi Technique members do not have face to face interaction for group
decisions.
4. Consensus Mapping technique of group decision making tries to pool the ideas
generated by several task groups to arrive at a decision.
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Decision under Uncertainity
Decision Criteria:
1. Maximax Criterion Maximising the maximum possible payoff (optimistic)
2. Maximin Criterion Maximising the minimum possible payoff (pessimistic)
3. Minimax Criterion minimising the maximum possible regret (regret)
4. Insufficient reason Criterion Assuming equal likely probabilities for occurrence of each possible state of nature.
Situation: Demand for Product
Lo Mid Hi
Centralised
Distribution
30 15 20
Decentralised
Distribution10 15 35
Situation: Demand for Product (Regret)
Lo Mid Hi
Centralised
Distribution 0 0 15
Decentralised
Distribution20 0 0
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Approaches to Problem Solving
1. Routine Approach by traditional way of referring to SOPs (repeated)
2. Scientific Approach orderly system of processing information, a system in which
certain steps follow others in fixed order.
3. Quantitative Approach emphasis is on mathematical modeling of systems.
4. Creative Approach should not be viewed as a logical action, i.e. the problemneed not be defined and strictly rational steps need not be taken to decide what to
do.
Creative thinking is a process of bringing a problem before ones mind clearly, by
imagining, visualizing, supposing, musing, contemplating or the like, and then
originating an idea, concept, picture or realization along new or unconventional
lines. It involves study and reflection rather than action.Stages of Creative Process: 1) Saturation, 2) Preparation, 3) Incubation, 4) Illumination,
and 5) Verification.
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INFORMAL ORANIZATION
The informal organization grows out of the personal
needs and group needs of the organizational members.
Informal organization refers to the personal
relationship developing spontaneously as people work
together out-side the formal organizational structurelike friendship etc., which are unconsciously
coordinated.
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In this case, a subordinate may offer an advice, to his superior
as his friend. This, however is not possible in a formal
organization.
A manager can establish or cancel any of the formal
organization. However he can neither create nor cancel an
informal organization.
Basis for such organizations may be provided by affinities of age, sex, religion, caste, place, occupation, personal interests or
any other special issues etc,.
INFORMAL ORANIZATION
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The major difference between formal and informal organizations
The formal organization is created and established by some higher authority,but informal organization arises spontaneously.
The size of the formal organization are stable in nature whereas the informal
organizations are dynamic in nature.
Formal organizations is based upon Authority and regulations. Informal
organization is based upon needs and attitudes.
Formal organization specifies the freedom of action for each subordinate.
Informal organization has strong group attitudes and a manager can increase
his effectiveness by winning the confidence of the informal group.
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Line Organization
Line organization is the most oldest form of organization.
According to this theory only one man in the top-level will be all in
all.
Overall, the authority flows in the form of a straight line from
top-level executive to the lowest level. That is why, it is known as
line organization.
Each individual is the boss of his subordinates and the
subordinates would remain accountable to his immediate boss.
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Line and Staff Organization
Line and staff organization refers to such type of organization where staff
personnel render advice to the line managers to perform their duties.
When the volume of activities increases much, the managers need the help of experts to perform their function.
The staff members render such type of advice to the line managers since the
former are each one a specialist in their respective fields.
They have the power to give advice or suggestion but have no right to execute
in orders.
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Line and Staff Conflict
Factors leading to line-staff conflict can be grouped into 3 categories, view point of
line, view point of staff and nature of line-staff relationship.
View Point of Line Managers
1. Lack of responsibility
2. Encroachment of line authority
3. Dilution of authority
4. Theoretical basis
Viewpoint of staff managers
1. Lack of proper use of staff
2. Resistance of new ideas
3. Lack of proper authority
Nature of line-staff relationship
1. Different backgrounds
2. Lack of demarcation between line and staff
3. Lack of proper understanding of authority.
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Line and Staff Conflict
Overcoming line staff conflict
1. Understanding authority relationships. - line people should have ultimate authority
for making operating decisions. Functional authority for staff people so that their
recommendations are considered. Staff people should rely on authority of
knowledge and competence rather than position.
2. Proper use of the staff line people should be encouraged to use the expertise of
staff people. Staff people to be allotted critical work in their specialty. Staff people
should be involved from the initial stages of planning. Line people should keep
staff people informed.
3. Completed staff work Recommendations are presented in as complete form as
possible. Line manger has to just give his consent or disapproval for the
recommendation.
4. Setting congenial organizational culture Is a concept of mutual trust and respect,
self restraint and control.
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Functional organization
In case of such an organization, an individual receives instructions from a few
functional head ; such as, the foreman of production department receives instruction
not only from his line boss, superintendent but also from personnel manager,
marketing manager and financial manager.
Another form of functional organization is found which is complete in all respects and
is constituted with some branches in each of which there is staff specialist .
This organization will be functional when these staff experts would remain partly
responsible to the head office.
With this, there is also a central line organization where a specialist of the branch
gives report to higher level line office of that branch. As such, an individual would
remain responsible to report to two persons.
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Departmentation
Departamentation consists of jobs, the combining of jobs into effective work
groups and the combining of groups into divisions are often called as
departments .
The important methods of grouping activities may be,
a. By function
b. By product
c. By customer
d. By geographical
e. By process
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Process Departmentation
Whenever work that would other wise be done in several different
locations in an organization is done in one place because of the
special equipment, used, then departmentations that would result
is known as Process Departmentation.
Heavy specialized equipment such as assembling process, Painting
process, quality control process may be the various forms provide
the basis for Process Departmentation.
Each process may be headed by a senior officer, who will take
entire responsibility of that particular operation of the process
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FunctionalDepartmentation
Functional departmentation occurs when organization, units are defined by the nature of
the work. Although different terminology may be use, most organisations have four major
functions- Production, sales, finance and personnel.
Each of the above functions may be further sub divided as production department may
be departmentalized into maintenance, quality control, engineering, manufacturing and
so on.
The personnel wing may be further departmentalized such as manpower planning,
training and development, wage and salaries, industrial relationships and so on.
The primary advantage of functional Departmentation is that it allows for specialization
within function. It also provides for efficient use of equipment and resources. This kind of
departmentation has some negative effects also.
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Product Departmentation
Multi product organizations with wider
markets prefer to group their activities on the
basis of products or product Classes.
All functions related to particular products are
brought to gather under the roof of a product
manager, who is delegated with operatingauthority by the top management.
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Departmentation by Customer
An enterprise may be divided into number of units on the basis of the
customers .A better example of this type is an organization which has one
department to handle government sector and one to handle the private
sector.
Thus a marketing or sales department may be sub divided into number of
units on the basis of customer.
The sub-divisions can be on any one of the following basis: large and smallcustomers, Rich and Poor customers, government and private customers,
child, adult, sex, income taste etc.
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Departmentation by Geography
Departmentation by territories is not likely to occur
in organization which maintain number of
autonomous operating or offices.
Sales operations are spread throughout the country,
the geographical departmentation provides
opportunities for zonal managers senior branch
managers, branch managers, sales executives,
salesman etc.
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Decentralization
Decentralization refers to such a state of organization structure
where topmost authority in management allocates the power of
planning and decision making, organizational and
administrative power and responsibility to the lower-level
employees.
In short decentralization refers that when higher authority
delegates power to lower level employees, it is called
decentralization.
Decentralization is established in the organization as result of
delegation of authority relating to managerial functions.
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Principles of Decentralization
True delegation of authority Successful decentralization needs full and real delegation of
authority. Reporting or checking of details are allowed to be taken by the subordinates.
Based on knowledge and understanding All decisions of decentralization must be based
on theoretical understanding and practical knowledge of its effects.
Confidence in Subordinates Superiors must place full confidence in the abilities of the
subordinates to take correct decisions at the right time. They should not interfere in their
day to day functioning. They must be encouraged to exercise their discretion and use their
initiative.
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Consultation between line and staff Staff, with their expertise, must advice and
encourage the practical and experienced like operators to take correct decisions
by themselves.
Full understanding of the enterprise Policies of decentralization must confirm
with the objectives organizational structure and the policies of the business.
Responsibility to be commensurate with authority For successful,
decentralization, the person must accept responsibility commensurate with the
authority which is exercised by him
Principles of Decentralization
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Decentralization
Reasons of decentralization. (Contingency View)
1. Size of the organization
2. History and age of the organization
3. Philosophy of the top management
4. Ability of lower level managers
5. Strategy and organization's environment
6. Nature of management function
7. Costliness and significance of decisions
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Authority
Authority" refers to a claim of legitimacy, the justification and right to
exercise power (influence to act)
Types of Authority
Formal: Delegated within an organization for e.g. superior-subordinate
authorityFunctional: Authority based on specialized knowledge like staff authority or
the authority delegated to assist line managers
Personal: Authority based on seniority and relationship
Authority is different from power, which is ability to influence or to cause aperson to perform an act.
There are 5 types of power- reward, coercive, reference, expertise &
legitimacy.
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Authority Vs Power
Authority Power
It is the institutional right of a superior to
command and compel this subordinates
to perform a certain act
It is the ability of a person to influence
another person to perform an act
It rests in the chair or position It rests in the individual
It can be delegated to subordinate by his
superiorIt cannot be delegated
It is mostly well defined, conspicuous and
finite
It is undefined, inconspicuous and non-
finite
It is what exists in the eye of the law. It is
de jure conceptit is what is in fact. It is de facto concept
it serves as a basis for formal organisation it serves as a basis for informal organization
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Delegation of Authority
Process off assigning work from a top
organizational level to a lower one or from
superior to subordinate and giving that person
the authority to accomplish them
A downward flow of authority from HIGHER
level in the organization to LOWER level
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Delegation
A manager in an enterprise cannot himself do all the tasks necessary for the
accomplishment of organizational goals. Clearly, his capacity to do work
and take decision is limited. He therefore assigns work to his subordinates
and also gives them necessary authority to take those decisions. This
downward pushing of authority to make decisions is called delegation.
Advantages of Delegation.
1. It relieves the manager of his workload.
2. It leads to better decisions
3. It speeds up decision-making.4. It helps train subordinates and builds moral.
5. It helps create a formal organization structure.
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Elements of Delegation
Authority: It is a right to take a final decisionand command others. It moves in a downwarddirection
Responsibility: It is an obligation to perform aduty. It cannot be delegated.
Accountability: subordinates must be heldanswerable to their carried out duties
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Barriers to Delegation
Reluctance to delegation may be due to following reasons. (managers part)
1. Fear of loss of power.
2. The I can do it better myself fallacy
3. Lack of confidence in subordinates
4. Fear of being exposed.
5. Difficulty in briefing.
6. Inability to establish and exercise proper controls.
On part of subordinates the reasons could be:
1. Fear of criticism if they commit mistakes.
2. Lack of authority or resources to carry out their duties
3. Lack in self confidence and initiative.
4. No gains for assuming extra responsibility.
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Guidelines for effective delegation
1. Before delegation authority, make the nature and scope of the task clear.
2. Assign authority proportionate to the task.
3. Make the subordinate clearly understand the limits of his authority.
4. Give the subordinate some positive incentives for accepting responsibility.
5. Train the subordinate properly.
6. Create a climate of mutual trust and goodwill. The subordinate will work
much better if he has the freedom to commit honest mistakes.
7. Do not make the subordinates accountable to more than one superiors.
8. Let there be no splits or overlaps in delegation of authority.
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Span of Control
Number of subordinates that can be
adequately supervised by one supervisor
Span of control consists of two dimensions
± Narrow Span of control
± Wide span of control
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Narrow span of control
The Manager supervises a small number of
people or subordinates
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Advantages of Narrow Span of control
Close supervision
Close control
Fast communication between subordinatesand superiors.
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Disadvantages of Narrow span of
control
Superiors tend to get too involved in
subordinates work
Many levels of management
High costs due to many levels
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Wide span of control
The Manager supervises a large number of
people
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Advantages of Wide span of control
Superiors are forced to delegate
Clear policies must be made
Subordinates must be carefully selected
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Factors determining span of control
The competence of both the supervisor andthe subordinate
The degree of interaction between the units
or personnel being supervised Other duties of the top manager
Lower-level managers have a wider range of
span than top-level manager The similarity or dissimilarity of activities
being supervised
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Factors governing Span of Management
Appropriate SOM must be determined by the specifics of the managers
particular situation:
Ability of the manager ability to handle number of people.
Ability of the employee- if they are competent and possess the required skills
they require less supervision.
Type of Work Complexity and similarity of work done by individuals.
Well defined authority and responsibility- they need not frequently call up
superiors for role clarity.
Geographic Location whether are all located in same room or locations in
different regions.
Sophisticated information and communication system this factor may help
control larger group of people.
Level of management higher the level lower the span of control.
Economic Consideration smaller spans means more managers and larger
span implies inefficiencies both incurs cost, a balance is sought.