Centralization & Decentralization- CLEAR EXPLANATION ABOUT Definition, Advantages, Disadvantages of both with PICTURES, HR FUNCTIONS, operations, stratergies

1. STAFF CONCEPT & FUNCTIONAL AUTHORITY
CHAPTER
By
S. EVANGELENE KEZIAH

2. FUNCTIONS OF MANAGEMENT

3. ROLE OF HUMAN RESOURCE (HR) MANAGEMENT IN ANY BUSINESS

4. Business owners should carefully consider which type of organization
establishment (Eg: Factory, Textile, Mall, Institution, etc…)
Larger organizations usually require both centralization &
decentralization structure since such companies can have several
divisions or departments
All Organization depends on the growth and expansion of business
operations but DELEGATION OF AUTHORITY is important

5. What is DELEGATION ?
Delegation is the assignment of work assigned with
authority from one person to another person to carry
out specific activity or task.
Process of distributing entrusting work to another
person. Provides too much input, direction, and
review of delegated work with empowering
authority to a subordinate.
AUTHORITY or ASSIGNMENT is SHARED

6. Reasons - someone may decide to delegate:
 To free themselves up to do other tasks
 To produce qualified person
 To solve any issue & to share work
 Power & work is TRANSFERED
 To develop someone else's ability
Delegation - essential element of effective management

9. TYPES OF DELEGATION

10. IMPORTANACE OF DELEGATION
Dividing of work/ division of task
Heavy workload & stress is reduced
Better & quick decisions are done
Can maintain healthy relationship
Multi Works are done at same time
Improve job satisfaction
Manager is little free

11. FACTORS AFFECTING DELEGATION
 Lack of acceptance by subordinates for some task/work
 Willingness to let go
 Fear of employees (example: Freshers)
 Lack of control
 Lack of incentives
 Lack of self-confidence
 Irresponsibility
 Working atmosphere
 Free flow of information & communication

13. CENTRALIZATION
In a management structure where decision making is done by those with a broader perspective & have
considerable knowledge and information about what needs to be done. In a centralized organization
decisions are made by Higher management or Top level management are typically communicated to
lower organization.
 Decision making at high level
 They have the supreme power & authorities
 Eg: Managing Director, board of directors, managers of each department, etc…
“Everything that goes to increase the importance of the subordinate’s role is decentralization;
everything that goes to reduce it is centralization.” - Henry Fayol

14. Admin.
Officer
Senior
Manager
Finance
Executive
Asst.
Manager
Executive
Director
Oper-
ations
Manager
Finance
Manager

15. ADVANTAGES OF CENTRALIZATION
 Equal facilities provided to all departments (employees)
 Objectives, motive, work plan framework will be clear
 Proper decision making is done
 Reduce unnecessary cost
 Have a central administrative control
 Have healthy relationship with all different departments
 Responsibilities and duties are well defined
 Decisions are significant
 Effective implementation of company strategies depend on them

16.  Delay of information passed to sub-ordinates
 Result in inefficiency
 Expectation from all departments will be high
 No loyalty among department heads
 Attention toward each department may not be balanced
 Stress/ Workload/ work pressure is high
 Decisions may be misunderstood while being passed on to lower position
 Dispute in division of work may occur

17. DECENTRALIZED
APPROACH
Bottom-to-top approach
CENTRALIZED
APPROACH
Top-to-bottom approach
Level 1
Level 2
Level 3
Level 4

19. Decentralization can be viewed as an extension of delegation.
Decentralization extends to the lowest level of the organization.
 Decision making at lower level
 Limited authority
 Example: department heads, executive officers, etc…
 Everything happens in an organization
“Decentralization Is The Systematic And Consistent Delegation Of
Authority To The Levels Where The Work Is To Be Performed.”
- Louis Allen
DECENTRALIZATION

20. Decentralized organizations grant decision making authority
from the managers to subunits

21. ADVANTAGES OF DECENTRALIZATION
 Reduce the burden of top manager/top level management
 Pressure is reduced
 Helps to maintain proper management in organizing
 Executive development & Department development is done
 Work allocation/segregation is done
 It promotes motivation
 Everyone gets opportunity
 Better control & supervision of work is maintained
 Quick decision making is done

22.  Problem in co-ordination
 Lack of specialization
 More staffs required
 Uniform policies are not followed
 More financial burden
 Frequent department meeting is required

23. PICTORIAL COMPARISON

24.  Functions of Management – Organizing, staff authority
 Role of HRM
 DELEGATION of AUTHORITY – Definition, Reasons, Process, Things Considered, Types,
Importance, factors affecting
 CENTRALIZATION-Definition, Advantages, Disadvantages, Application- Example
 DECENTRALIZATION-Definition, Advantages, Disadvantages, Application- Example