Line & Staff Authority, Decentralization
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Line & Staff Authority, Decentralization

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Line & Staff Authority, Decentralization Line & Staff Authority, Decentralization Presentation Transcript

  • LINE /STAFF AUTHORITY
    • Authority: The right in the position and hence the right in the person occupying the position to exercise discretion in making decisions affecting others and the performance of individuals and others.
    • Power: The ability of individuals or groups to induce or influence the beliefs or actions of other individuals or groups.
    • - The presidential Authority.
    • - The PM’s Authority.
    • - The power of a leader (ex. Mr. Vajpayee, Mrs. Sonia Gandhi)
  • LINE /STAFF AUTHORITY
    • Bases of Power:
    • Legitimate power: Arising from position and derived from the cultural system of rights and duties / obligations.
    • Position accepted as legitimate by the public.
    • Royal positions – kings
    • Ministerial positions……..
    • Railways TTEs
    • Traffic Police,…..
  • LINE /STAFF AUTHORITY
    • Bases of Power:
    • Referent Power – Is that influence which persons exercise to influence others owing to one’s / their commanding respect among the public.
    • Ex: Sports persons, Cine stars
    • Reward Power: Power in granting rewards.
    • Ex: CEOs, Professors, …
    • Coercive Power: Power to punish.
    • Ex: Police authorities, Intelligence,…..
  • LINE /STAFF AUTHORITY
    • Empowerment: The act of giving authority and power to exercise decision making without seeking powers from one’s superiors.
    • Parameters to be considered:
    • Competencies, Mutual Trust, Sincerity, Degree of acceptance by the subordinates, Integrity, Loyalty, ….
    • Power being “P” and Responsibility being “R”
    • P = R symbolizes Balanced situation,
    • P > R symbolizes Autocratic Behavior
    • P< R symbolizes Frustration leading to inefficiency.
  • LINE /STAFF AUTHORITY
    • General Perception:
    • Line functions: Those having direct impact on the accomplishment of the organizational objectives.
    • Ex: Production, Sales, (Finance)
    • Staff functions: Those helping the line persons work more effectively in accomplishing the objectives.
    • Ex: Purchase, Design, R&D, HR, Maintenance, Service, QC,..……
  • LINE /STAFF AUTHORITY
    • Line Authority gives a superior a direct line of authority over his subordinate. I.e., a superior exercises direct supervision on his subordinate – an authority relationship.
    • Exists as a series of uninterrupted steps.
    • Nature of staff relationship: Advisory.
    • To investigate, research, help and advice the line managers in accomplishing organizational objectives.
    • Governor’s relationship with Ministry.
  • LINE /STAFF AUTHORITY
    • SCALAR PRINCIPLE:
    • Speaks of authority , responsibility, reporting, decision making and communication.
    • “ Clearer the line of authority (from the ultimate management to every subordinate position) clearer will be the responsibility for decision making and more effective will be organization communication.”
  • LINE /STAFF AUTHORITY
    • Note:
    • Line and staff are distinguished by authority relationships and not by what people do.
    • A department like R&D, DESIGNS may stand in a predominantly staff position with respect to other departments but within the department, are line relationships.
    • Ex. VP – Production – generally line function.
    • But, when he advises the CEO on co’s production policy, the relationship is staff in nature.
  • LINE /STAFF AUTHORITY
    • FUNCTIONAL AUTHORITY:
    • The right which has been delegated to an individual or a group to control specified processes, practices, policies, procedures, or other matters related to activities undertaken by persons in other departments.
    • Ex. Company controller prescribing the system of accounting system for the entire co.
    • QC specialist establishing QC practices for the entire corporate group of cos.
  • LINE /STAFF AUTHORITY
    • Problems with or Limitations of Staff Managers.
    • Danger of undermining Line authority.
    • Lack of staff responsibility.
    • Thinking in a vacuum.
    • Managerial Problems – Confused unity of command.
  • LINE /STAFF AUTHORITY
    • CENTRALIZATION:
    • The act of bringing together the activities under the control of a central authority.
    • Types of Centralization:
    • Centralization by performance. – Co. operating in a single location.
    • Centralization by departments. – Central Maintenance, Central Purchase,….
    • Centralization as an aspect of Management. – High degree of authority held at or close to the top management. – ex. LML. TATA v/s BIRLAS.
  • LINE /STAFF AUTHORITY
    • DECENTRALIZATION:
    • More than Delegation.
    • Reflection of Management philosophy.
    • Policy making to guide decision making.
    • Selection and Training of personnel –critical.
    • Essential element of a successful managerial system.
    • Signifies readiness to accept new challenges, flexibility, globally dynamic environment.
  • LINE /STAFF AUTHORITY
    • Delegation of authority:
    • The process of Delegation:
    • Determine the specific results expected of a position.
    • Assign the tasks to the position.
    • Delegate the necessary authority to accomplish these tasks.
    • Hold the person in that position responsible for accomplishing the tasks.
  • LINE /STAFF AUTHORITY
    • Golden Rules of Delegation:
    • What a superior delegates is his authority and never the responsibility.
    • You may hold your subordinate responsible, still you are accountable for all the responsibility.
  • LINE /STAFF AUTHORITY
    • Splintered Authority.
    • Wherever a problem cannot be solved without pooling the authority of two or more managers, there lies “splintered authority.
    • Ex. Joint decision by Marketing and Production departments on product mix during the times of short supplies of raw material. Managerial conferences,…
  • LINE /STAFF AUTHORITY
    • Parameters affecting delegation:
    • Personal attitudes towards delegation.
    • Receptiveness
    • Willingness to Let Go.
    • Willingness to let others make mistakes
    • Willingness to trust subordinates.
    • Willingness to establish and use broad controls – Good Feedback mechanism
  • LINE /STAFF AUTHORITY
    • Guidelines to overcome weak delegation.
    • Assignment of tasks and delegation of authority should be in light of the results expected.
    • Select the right person for the job to be done and not the other way.
    • Establish and sustain open and transparent communication lines.
    • Establish right methods and measures of control.
    • Develop a clear feedback mechanism.
    • Reward effective delegation and successful assumption of authority.
  • LINE /STAFF AUTHORITY
    • MERITS OF DECENTRALIZATION
    • Relieves top management.
    • Encourages decision making
    • Develops independent thinking
    • Leads to establishing broad controls and measures.
    • High chance to increase motivation.
    • May establish profit centers.
    • Aids product diversification.
    • Helps in developing generalists.
    • Aids developing flexibility and adaptation.
  • LINE /STAFF AUTHORITY
    • DEMERITS OF DECENTRALIZATION
    • Difficult to have a uniform policy.
    • Tough to coordinate multiple decentralized units.
    • May lead to loss of control by top management
    • Difficult in establishing control measures.
    • Short of good managerial talent is a set back.
    • Calls for expensive training of managers.
    • May not gel in few situations for certain operations under economy of scale.