This document discusses principles of management including authority, power, delegation, decentralization, and empowerment. It defines authority as the formal right of a superior to command subordinates and identifies two views of its sources: classical/legalistic and human relations/acceptance. It distinguishes authority from power, noting authority is narrower in scope and based on position while power is wider and based on individual ability. It outlines advantages and barriers to delegating authority as well as decentralizing decision making authority. Empowerment gives employees authority to make decisions through participation, access to information, and responsibility.

1. Principles Of Management

2. It is the formal
right of the superior
to command his
subordinates to
perform a certain act.

3. Sources of Formal Authority
 Classical View-
Traditional or
Legalistic View.
 Human Relation View-
Acceptance View.

4. Ability/
Potenti
al of a
person
to
influenc
e other
person.
 Charismatic power-
extraordinary qualities.
 Reflected power-from a
powerful individual.
 Emotional power-As a mother
over her son.

5.  Narrower in scope.
 Legitimate right.
 Rests on chair.
 Delegated by
superior.
 Well-defined & finite.
 Basis of formal
organization.
 Wider in scope.
 Ability of a person.
 Rests in individual.
 Can’t be delegated.
 Undefined & infinite.
 Basis of informal
organization.
Authority Power

6. Delegation of Authority
Assigning some part of manager’s work to
subordinates with some authority.

7. Advantages of Delegation
 Relieves manager of his
heavy workload.
 Leads to better
decisions.
 Speeds up decision
making.
 Helps to train
subordinate and build
morale.

8. Barriers of Delegation
 Fear of loss of power.
 The “I Can Do it Better
Myself” fallacy.
 Lack of Confidence in
subordinates.
 Fear of being exposed.
 Difficulty in Briefing.

9. Decentralisation of Authority
 Similar to Delegation.
 Main difference with delegation is ‘Decision
making’.

10. Advantages of Decentralisation
 Relief to Top Executives.
 Motivation of
subordinates.
 Quick Decisions.
 Growth &
Diversification.
 Executive development.

11. Disadvantages of
Decentralisation
 Expensive.
 Difficulty in
coordination.
 Lack of uniformity.
 Narrow Product lines.
 External Constraints.

12. Empowerment
 Authority of an
employee to make
decision.
 Operationalized through
participation, innovation,
access to information &
responsibility.

13.  Speed
 Morale
 Greater potential of
chaos
 Role conflict
Merits De-merits

15. References
 Principles of Management by P C Tripathi & P
N Reddy.
 Management Theory and Practices by C B
Gupta
 Images.google.com

16. Dr. Nazia Ansari
Guided By
Prepared By
Darshana Chauhan
Athira Ezhuva
Vanita Hathliya