Principle of Organizing

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Principle of Organizing

Authority
Authority is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes. A manager's authority is defined in his or her job description.

Organizational authority has three important underlying principles:


Authority is based on the organizational position, and anyone in the same position has the same authority. Authority is accepted by subordinates. Authority flows down the vertical hierarchy.

Authority Comes In Three Types


Line authority Staff authority
Advisory role Service role Control role

Functional authority

Responsibility & Accountability


Responsibility: The duty to perform task and activity an employee has been assigned Accountability: The fact that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain to command.

Delegation
Delegation (or deputation) is the assignment of authority and responsibility to another person (normally from a manager to a subordinate) to carry out specific activities

Steps in Delegation
Definition Selection Communication Consideration Motivation Questions Progress

Barriers to Delegation & their Elimination

1. I can do it better myself 2. My people are just not capable enough 3. It takes too much time to explain what I want done 4. If it goes wrong Ill still be accountable 5. Delegation reduces my own authority 6. Ill be shown up if they do too good a job 7. My people prefer that I make the decisions 8. Team members want to avoid responsibility (at least at work)

Centralization Vs Decentralization

Centralization is the process where the authority and power of an organization is in the hands of only a few.
This power includes activities such as planning, decision-making and delegating authority. The top management takes all the important decisions if an organization is centralized. These decisions are then enforced on the lower tiers of the organization.

Decentralization
The delegation of authority at all levels of an organization. A lot of the decision-making is delegated to the lower levels of the organizational structure. The chances of being able to make improvements increases.

Advantages of Decentralization over Centralization


Relieves the top management from dealing with ordinary issues Employees get chance to display their decision-making skills, & also gives the experience they would have missed in a centralized organization. The increased responsibilities of the lower level managers, increases their enthusiasm for work and acts as a motivator.

Makes an organization flexible to minor changes.


The lower level managers have a more in-depth knowledge of the situation, and can hence handle it better.

Advantages of Centralization over Decentralization


Singular point of control The implementation of an idea, process or policies is easier Due to a single vision of the head of the organization can work towards a single goal the company,

Centralization allows corporate decision makers respond better and faster in urgent situations which require quick decisions

Factors for Effective Decentralization


Size of Organization History of organization Management philosophy Availability of mangers Costliness of decision Rate of change in organization Nature of activities

Thank You

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