Management Concepts & Organizational Behavior -Pawan Sharma

Delegation of Authority Organization Structure Road Map Formal and Informal Organization Q & A Impact of Technology on Organizational design Decentralization Delegation of Authority Organization Structure

Chain command, Unity of command, and Span of control. The organization chart of any company, therefore, enables one to understand easily three classical principles of organizing, viz., Chain command, Unity of command, and Span of control.

Chain of Command The type of arrangement of various positions in an orderly way is termed scalar chain or chain of command. The chain of command exists wherever an individual is made subordinate to another. Since ancient times, it has been recognized that the only way to structure unified systems involving large number of people is through a chain of command

Unity of Direction The entire organization should be moving towards a common objective in a common direction. 

Span of Management The span of control of the average manager in an organization determines the width of the organization as seen when viewing the organizational chart. Fewer reports to the average manager will result in a taller organizational chart, with more management positions relative to the number of individual contributors

Problems with levels i. Costs: Levels are costly. Too many levels involve lot of expenditure. Additional facilities in terms of secretarial staff have to be provided besides the pay differentials in the compensation package. In many organizations substantial expenditure has been saved by increasing the span. ii. Communication: Successive layers of management act as communication filters distorting the transmission of information. Experience shows that the greater the number of management levels a message must pass through, the longer it will take to reach its destination. More often, the information also looses clarity. Thus, communication or organizational objectives, plans and policies become difficult. Omissions and misinterpretations usually occur as information passes through too many levels in the scalar chain. iii. Managerial control: The distance between the top and bottom levels of an organization also affects control. For example, even the best of the plans which are definite and complete at the top level lose clarity as the plans are sub-divided and elaborated at lower levels

Factors Influencing Span of Management Manager’s personality Manager’s capability Subordinates capabilities Fatigue tolerance Activity level Non-supervisory activities Similarity of activities supervised Complexity of work Availability of sophisticated facilities Location

Departmentation Departmentation is the process of dividing the organization’s overall task into manageable submits. The subunits are often referred to as departments, divisions, or sections. By whatever name the units are called, the process of creation of such sub-units to facilitate the performance of activities is known as departmentation. Functional Departmentation

Product/ Market Departmentation

The Matrix Structure

Delegation Of Authority And Decentralization Authority is the right to command. It is the discretion power vested with a manager to use the organizational resources. Managers acquire authority by virtue of the rank or title associated with their position. Responsibility, on the other hand is the obligation to perform the tasks and accounts for their satisfactory completion. It is implied that an individual is expected to fulfill certain job requirements when he or she accepts a position in the organization.

Process of Delegation Entrustment of Duties or assignment of Responsibilities Granting of Authority Creation of Accountability

Barriers to Effective Delegation Lack of Confidence in Subordinates The “I can do it better myself fallacy” Lack of ability to direct Aversion to Risk Inadequate Information and Resources

Overcoming the Barriers Effective Communication: Parity of Authority and Responsibility: Incentives for additional responsibility: