AN INSIGHT

Line/staff authority, Empowerment and Decentralization

CONCEIVED BY:

Ronak B. Bhatt

Niraj Chandra

Karun Kapoor

overview

Issues concerning the governance of an organization

- Niraj Chandra

Concept of organization structure- Karun Kapoor

Delegation of Authority-Ronak B. Bhatt

Issues concerning the governance of an organization

Power

Authority

Empowerment

Power“Power is the ability of individuals or groups to induce or influence the belief or action of other people or group.”

Types of POWER:

Legitimate Power: Position in Society/Organization

Power of Knowledge: Expertness of Person

Referent Power: Belief of Someone

Reward Power: Grant/Hold high grade

Coercive Power: Power of Punishment

Authority

“Authority in an organization is the right in a position to exercise discretion in making decisions affecting others.”

Empowerment

“Empowerment means that employees ,manager, or all levels in the organization have the power to make decision without asking their superior for permission.

Illustration as follows:

Power = responsibility (P=R)

If P>R, then results in autocratic behaviour of superior.

if P<R, it results in frustration of subordinate.

Dispersion of Authority in OrganizationDecentralization of power:

Systematic delegation of authority at the lower level with operation authority for decision. In complete decentralization - no organizational structure

Centralization of power:

Concentration of authority to higher level of management is centralization. There is no organizational structure( complete centralization)

Fayol said” Increase in subordinates role is decentralization, and everything which goes to decrease it is centralization.”

Decentralization

Advantages:

Relieve top management of some burden of making decision.

Make comparison of performance of different organizations unit possible.

Facilitate product diversification.

Aid in adaptation to fast-changing environment.

Limitations:

Makes uniform policy difficult.

Increase complexity of coordination of organization .

May be limited by inadequate planning and control system.

Involve expenses for training manager.

Concept of Organization Structure

Line organization

Line and Staff organization

Line OrganizationIn a Line Organization all managers have direct authority over their respective subordinates, through Scalar chain of command.

Sca

lar

chain

of

com

mand

Managing Director

Production Manager

Production Superintendent

Foreman

A direct relationship between superior and subordinate works as:

As a chain of command

As a channel of communication

As a carrier of responsibility

Line and staff OrganizationThe line and staff organization refers to an organization in which two types of authority relationships co-exists. They are Direct or Line authority and Advisory Authority.

Staff managers advice ,support and serve line managers.

Line & Staff Organization Structure

Chief Executive

Asst. to Chief Executive

Personnel Manager

R&D Manager

Mfg. Manager Mktg. Manager

Qty. Ctrl. Manager

Plant Manager

Plant Manager

Industrial Relations Manager

Training manager

Employ service manager

Industrial. Product manager

Consumer Product manager

Marketing Research manager

Line & Staff Conflict

View point of Line Managers:

Lack of Responsibility

Encroachment of Line Authority

Dilution of Authority

Theoretical Authority

Line & Staff Conflict

View point of Staff Managers:

Lack of Proper use of staff

Resistance to New Ideas

Lack of Proper Authority

Functional Authority

“Functional Authority is the power which an individual or department may have delegated over specific processes, practices, policies or other matters relating to activities undertaken by personnel in departments other than its own.”

Functional Authority

Advantages:

Specialization

Mass Production

Efficiency

Flexibility

Disadvantages:

Conflict among Superiors

Lack of Co-ordination

Lack of Speed

Expensive

Summary of Line/Staff/Functional Organization

Sr. No.

Feature Line Organizatio

n

Line and Staff Organization

Functional Organization

1. Simplicity High Not So High Low

2. Suitability For small enterprises

For medium and large

enterprises

For large enterprises

3. Specialization

Low Moderate High

4. Work load of

managers

High Moderate Uneven

5. Unity of Command

Strictly observed

Observed to great extent

Not observed in general

6. Economy High Moderate Low

Delegation of Authority

Process of Delegation:

Determining the results expected from position

Assigning task to the position

Delegating authority for accomplishing these tasks

Holding the person in that position responsible for the accomplishment of the task.

Splintered AuthoritySplintered authority exists wherever a problem cannot be solved or a decision made without pooling the authority of two or more managers.

Splintered Authority V/S Superior Authority

Recovery of Delegated Authority

Art of DelegationPersonal Attitudes towards Delegation

Receptiveness

Willing to let go

Willingness to let others make mistakes

Willingness to trust subordinates

Willingness to establish and use Broad Controls

Guidelines for overcoming Weak Delegation1.Define Assignments and Delegate Authority in light of Results Expected.

2.Select the person in light of the job to be done

3.Maintain open Lines of Communication

4.Establish Proper Controls

5.Reward Effective Delegation and Successful Assumption of Authority

Synopsis

We have discussed following topics in the presentation above:

Power and its bases

Authority

Empowerment

Line & Staff concept

Centralization/Decentralization/Recentralization

The process of Delegation of Authority

The Art of Delegation

Thank You