DEPARTMENTATION,SPAN OF CONTROL,LINE AND STAFF AUTHORITY-BENEFITS AND LIMITATIONS, DECENTRALIZATION and DELEGATION OF AUTHORITY

1. TOPIC:
DEPARTMENTATION,
SPAN OF CONTROL,
LINE AND STAFF AUTHORITY-
BENEFITS AND LIMITATIONS,
DECENTRALIZATION and
DELEGATION OF AUTHORITY
PRESENTING BY
MOHAMMED NASIH B.M

2. DEPARTMENTATION
 Departmentation is the important principle of organization.
 Departmentation refers to the manner in which organizational
activities should be divided into specialized groups so as to simplify
the tasks of managers and to maintain control.
 According to Koontz and O’Donnell, “Departmentation is a process of
dividing a large monolithic functional organization into smaller and
flexible administrative units.” It creates smaller administrative units
called departments, over which a manager is given authority and for
which he has accepted responsibility.
 No single formula for departmentation applies to all situations.

3. Contd..
 The following criteria will help while planning the organizational
structure:-
1. Similar activities may be grouped together based upon likeness of
qualities of common purpose.
2. An activity may be grouped with other activities with which it is
used, for example, safety and production.
3. Functions may be assigned to that executive who is most
interested in performing them.
4. If it is difficult to make definite distinctions between two
activities, they may be grouped together.
5. Certain functions require close co-ordination and, if separated,
would increase problems of higher level of managers; in this case,
such functions should be grouped together.

4. Contd..
 There are three common types of departmentation. That are;
1. Geographical
2. Commodity
3. Function
 All these three types are used in different levels of the organization
structure.
 Geographical departmentation can be defined as it is divided on the
basis of geographical area. For example, eastern division and western
division etc.
 Commodity departmentation can be defined as it is divided on the
basis of different commodities. Eg. Food, paints, furniture etc.
 Departmentation by organizational functions is defined as it is divided
on the basis of different organizational functions. Eg. Manufacture,
sales, production etc.

5. Types of Departmentation
General
Manager
Eastern
division
Western
division
Food Paints Food Paints
Mfg. Sales
Mfg. Sales
Mfg. Sales
Mfg. Sales
Geographical
departmentation
Commodity
Department-
ation
Departm-
entation
by
organiza-
tional
functions

6. SPANOF CONTROL
 Another principle of organization involves the span of control of a
manager and states that there is a limit to the number of subordinates
that one superior should supervise.
 Span of control refers to the number of people that one person can
supervise directly.
 This principle focuses attention on the basic fact that any human
beings has limitations.
• First, one has limited time available for one’s activities.
• Second, one has limited available energy and must depend on others
to supplement one’s energy.
• Third, the number of subjects to which a manger can give attention is
limited.

7. Contd..
 These limitation not only support the concept of span of control but
indicates the optimum span of control varies from individuals.
 The principle of span of control determines the number of managerial
levels in an organization.
 Suppose that an organization consists of 9 employees ; and one
manager can control and supervise these 9 subordinates , then only
one manager should be appointed. If a manager can control only three
subordinates effectively, there should be three assistant managers
under one general manager.

8. Single Level Management
MANAGER
S U B O R D I N A T E S

9. Two-tier Management
S U B O R D I N A T E S
GM
Manager 1
3 6 81 4 52 7 9
Manager 3Manager 2

10. LINE ANDSTAFF AUTHORITY
 The line and staff authority refers to an organization in which two
types of authority relationships co-exist.
 They are direct or line and staff or advisory authority.
 Line authority flows from persons at top level to those at lowest level
vertically. Thus, instructions are issued by the person in charge of the
whole organization and are directly conveyed to the persons
responsible for the execution of the work. This makes the line of
authority straight and vertical.
 Staff authority means authority to advice, support and serve.
 Essentially, the line and staff authority comes into existence when we
add functional specialists to simple line organization.

11. Contd..
 In a line and staff organization, most managers continue to have line
authority to decide and do things as in line organization.
 However, a few specialized staff positions are created for certain
advisory and supportive nature of functions.

12. Line and Staff Authority
Board of
Directors
Personal
department
Research
department
Chief
executive
Foreman
receiving shop
Operators Operators
Plant
manager
Law
department
Foreman
machine shop
Operators
Finance
manager
Foreman
assembly shop

13. Features of Line and Staff Authority
1. It has managers of two types – line and staff
2. Staff members serve line managers as advisers, specialists and
supporters.
3. Line and staff organization is more complex than the line
organization.
4. It is based on the principle of division of labour and specialization.
Line managers get the benefit of specialized knowledge of staff
specialists at various levels.

14. Benefits of Line and Staff Authority
 Line and staff authority is more beneficial than pure line authority. Its
benefits are;
1. Specialization : The principle of specialization is applied at every
level. All the activities are supervised by the experts in their field.
The advisory and planning functions are exclusively performed by the
staff enabling the line officers to concentrate on the executive or ding
function
2. Support to line officers : The line officers are well supported in
respect of general conduct of the organization. Even in normal times
they can secure the help of staff specialists.
3. Greater flexibility : line and staff organization has all the advantages
of line organization and functional organization. It is more flexible
than pure line authority.

15. Contd..
4. A means of training : Staff specialists afford a means of training to
young executives. They gradually pick up the expertise and
experience for efficient control.
5. Sound decisions : this system of authority provides opportunities for
sound managerial decisions because decisions are made by experts.

16. Limitations of Line and Staff Authority
1. Conflict between line and staff authority : Very often there is a conflict
between the line and staff authority. This is due to misunderstanding or
lack of communication. The line officers feel that their prestige and
influence suffer on account of the presence of the specialists.
2. Lack of responsibility on the part of specialists : The specialists do the
function of thinking and planning but do not have responsibility for the
results. They become ineffective for lack of authority to carry out their
recommendations.
3. Absence of thinking on the part of line officers : In practice,
organizational functions are divided into two parts- thinking and doing.
The line officers tend to rely on the advice of specialists and do not
exercise their faculty of thinking. In the long run, line officers become
mere machines and even neglect their function and execution.
4. Expensive system : this type of organization structure is very expensive.
The appointment of experts involves huge expenditure. Small or even
medium sized enterprise cannot afford it.

17. Decentralization
 Concept of decentralization has been an important organizing
principle, especially in large enterprises.
 As an organizing concept decentralization refers to the process of
pushing decision making to the lower levels of the organization.
 In other words, power of decision-making is delegated to the lower
levels in the managerial hierarchy.
 Decentralization exists where decision making power is delegated to
the lower levels.

18. Advantages of Decentralization
1. Top level managers have lesser burden of operating decisions. These
decisions are taken at middle and supervisory levels.
2. As authority and responsibility are delegated to lower levels,
managers at lower levels easily get trained and acquire competency.
3. Employee morale and motivation are higher. Therefore productivity
increases.
4. Diversification of business is facilitated because decentralization is
necessary for departmentation or divisionalisation.

19. Delegation of Authority
 Delegation of authority means to entrust a subordinate with some
authority to do something.
 We know that management is a group effort. No single manager can
cope with all activities connected with organization. He wants the
help of others. It is natural that he shares some of his work and
authority with his subordinates.
 The process by which manager shares some of his work and authority
with his subordinates is known as delegation of authority.

20. Elements of Delegation
1. Assignment of responsibility : In this a manager assigns a certain
function, work or duty to his subordinates for performance. It imposes
an obligation on the part of the subordinate to perform the assigned
duties. When a superior indicates what the subordinate has to do.
Then a responsibility is said to be created.
2. Grant of authority : When a task is assigned to a subordinate he has
the duty, obligation or responsibility to perform it. For this he must
get the authority or power or right to act and take decisions. The
superior may transfer certain rights such as the right to spend money,
to use materials etc. to perform the duties and responsibilities.

21. Contd..
3. Creation of accountability : When a work is assigned to a subordinate
and he is granted necessary authority, he is under an obligation to do
it as directed. He is accountable to the superior for the satisfactory
fulfillment of the work assigned to him. Accountability is thus the
final phase of the process of delegation. When authority is delegated,
responsibility is created and accountability is exacted. Authority flows
downward whereas accountability flows upward through the
organization pyramid.
 These three elements are often compared to three legs of a stool.
Each depends on the others to remain stable

22. Principles of Delegation
1. Delegation by results expected : This principle states that work and
authority should be delegated to such an extent that the subordinate
is capable of doing it satisfactorily without mistakes.
2. Parity of authority and responsibility : This principle implies that a
subordinate should be given authority commensurate with his
responsibility. Authority and responsibility should go hand in hand.
3. No delegation of responsibility : Delegation of authority does not
mean delegation of responsibility or does it imply complete
delegation of one’s authority to another. If the authority its given to
do a certain task. The responsibility to get it done by the subordinates
still remains with the superior. If the task is not performed by the
subordinate in the manner and within the time specified, the superior
cannot escape responsibility. He will be accountable to his superior
for the fault of his subordinate. Both the superior and subordinate are
equally responsible for the final result.

23. Contd..
4. Principle of unity of command : This principle states that for any given
activity an employees should be made accountable to only one
superior.
5. Authority level principle : The subordinates, on their part, should
avoid approaching their superior with problems and issues on which
they themselves have the authority to take decisions.

24. Importance of Delegation
1. Basis for effective functioning : It is the basic effective functioning of
an organization by establishing authority-responsibility relationships
through the organization.
2. Reduction in work load of top executives : Delegation relieves the top
management of the need to attend to minor or routine type of duties.
Managers can devote greater attention to more important
responsibilities.
3. Effectiveness of management : Since delegation of authority takes
place at all levels of the organization, it facilitates proper division of
managerial duties and its assignments among subordinates in a
systematic manner.
4. Aid to employee development : Delegation enables the employees of
an enterprise to develop their capabilities to undertake new and more
challenging jobs.

25. Contd..
5. Promotional of organizational growth : If there is proper delegation of
authority, division of labour is facilitated and organization grows.
6. Aid to better decisions : Effective delegation speeds up decision
making in an organization.

26. RECAP
 DEPARTMENTATION
 Types of departmentation
 SPAN OF CONTROL
 Single level management
 Two tier management
 LINE AND STAFF AUTHORITY
 Features
 Benefits
 Limitations
 DECENTRALIZATION
 Advantages
 DELEGATION OF AUTHORITY
 Elements
 Principles
 Importance

27. THANK YOU…,
#swih