delegation of authority, centralization, and decentralization

1. DELEGATION OF AUTHORITY,
CENTRALIZATION AND
DECENTRALIZATION

2. SPAN OF CONTROL:
 Span of control is defined as the number of employees a
manager can effectively manage.
 If span of control increases, it reduces the operational cost of an
organization.
 But sometimes, wider the span lesser will be the effectiveness
of control.
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Mr.B.Kannan,RIT

3. DELEGATION OF AUTHORITY:
 Delegation is the process of granting authority or right to
decision making in certain defined areas and charging the
subordinate with responsibility for carrying through assigned
task.
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Mr.B.Kannan,RIT

4. DELEGATION OF AUTHORITY:
 It is common knowledge that there is a limit to the number of
subordinates a superior can effectively manage, however
talented he may be.
 Once a man’s job grows beyond his personal ability, he succeeds
when he delegates his authority.
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Mr.B.Kannan,RIT

5. Process of Delegation:
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Mr.B.Kannan,RIT

6. Process of Delegation:
1. Sizing up the work:
 Superior has to assess his/her workload in terms of activities
and task to be assigned to him/her and result expected of him.
 He/she should analyze which part of work has to be
delegated.
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Mr.B.Kannan,RIT

7. Process of Delegation:
2. Assignment of duties to subordinates:
 Subordinates must explained about the nature of work,
limitation of authority, target expected.
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Mr.B.Kannan,RIT

8. Process of Delegation:
3. Granting of authority to perform duty:
 In this process official authority will be given to the
subordinate.
 Work force below the delegate will be instructed to follow the
commands of delegate.
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Mr.B.Kannan,RIT

9. Process of Delegation:
4. Creation of obligation:
 Delegate will be taking in charge.
 He/she will be responsible for all the activities performed.
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Mr.B.Kannan,RIT

10. Advantages of Delegation:
 Reduction of executive burden.
 Facility of expansion / multiplicity of skill.
 Efficient running of branch organizations.
 Identification of talents.
Disadvantages of delegation:
 Dependence on managers.
 Failure in completion of duty, due to lack of skill.
 Conflict among workers.
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Mr.B.Kannan,RIT

11. CENTRALIZATION:
 Centralization is the reservation of authority at a central point
within the organization.
 Role of subordinates becomes insignificant in this case.
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Mr.B.Kannan,RIT

12. Advantages of Centralization:
 Facilitates greater uniformity.
 Lowers operating cost.
 Enhances coordination.
Disadvantages of Centralization:
 Individual initiative destroyed.
 Overburden with routine functions.
 Communication gap with lower units.
 Keeps the customer away.
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Mr.B.Kannan,RIT

13. DECENTRALIZATION:
 Dispersal of decision making authority down to the level
where work is to be performed.
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Mr.B.Kannan,RIT

14. Characteristics of decentralization:
 Reflects the management’s attitude and philosophy.
 Managerial skills need to be developed among employees.
 Number of decisions must be made by lower level of management.
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Mr.B.Kannan,RIT

15. Advantages of decentralization:
 Facilitates diversification.
 Higher motivation for employees.
 Ensures effective control.
 Minimizes risk.
 Development of management.
Disadvantages of decentralization:
 May increase operational cost.
 Conflict among same level of employees.
 Lack of communication.
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Mr.B.Kannan,RIT

16. DECENTRALIZATION vs DELEGATION:
1. Definition:
 Delegation is entrustment of authority from one to another.
 Decentralization is organization wide delegation between top
managements and departments.
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Mr.B.Kannan,RIT

17. DECENTRALIZATION vs DELEGATION:
2. Essentiality:
 Delegation is mandatory for an organization.
 Decentralization is optional.
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Mr.B.Kannan,RIT

18. DECENTRALIZATION vs DELEGATION:
3. Range of control:
 In delegation of authority, top authority will expose maximum
control over delegates in delegation.
 In decentralization, top authority may exercise minimum
control.
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Mr.B.Kannan,RIT

19. Reference:
Stephen P. Robbins & Mary Coulter, “Management”, Prentice Hall
(India)Pvt. Ltd., 10th Edition, 2009.
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Mr.B.Kannan,RIT