Autority power centralization1

Purvish Shah - NAVIGATORPurvish Shah - NAVIGATOR
Line / Staff Authority ,Line / Staff Authority ,
EmpowermentEmpowerment
&&
DecentralizationDecentralization

Purvish Shah - NAVIGATOR
POWERPOWER
The ability of an individuals or groups toThe ability of an individuals or groups to
induced or influence the beliefs or actionsinduced or influence the beliefs or actions
of other persons or groupsof other persons or groups

AUTHORITYAUTHORITY
The right in a position to exerciseThe right in a position to exercise
discretion in making decisions affectingdiscretion in making decisions affecting
others.others.
oror
Its an Power in An Organization.Its an Power in An Organization.

TYPES OF POWERTYPES OF POWER
LEGIMATE POWER:-LEGIMATE POWER:-
Arises from the position .Arises from the position .
EXPERTNESS POWER:-EXPERTNESS POWER:-
Power of knowledge.Power of knowledge.
REFRENT POWER”-REFRENT POWER”-
Influence , people believe in them and in theirInfluence , people believe in them and in their
ideas.ideas.

TYPES OF POWERTYPES OF POWER
REWARD POWER:-REWARD POWER:-
Power arises from the ability of some people toPower arises from the ability of some people to
grant rewards.grant rewards.
COERCIEVE POWER:-COERCIEVE POWER:-
Closely related to reward power and normallyClosely related to reward power and normally
arising from legitimate power , it’s the power toarising from legitimate power , it’s the power to
punish, whether firing a sub ordinate or else.punish, whether firing a sub ordinate or else.

EMPOWERMENTEMPOWERMENT
Employees at all the levels in theEmployees at all the levels in the
organization are given the power to makeorganization are given the power to make
the decisions without asking theirthe decisions without asking their
superiors for permission. ( acceptsuperiors for permission. ( accept
responsiblities for their actions and tasks)responsiblities for their actions and tasks)

EmpowermentEmpowerment
 Power should be equal to ResponsiblitiesPower should be equal to Responsiblities
i.e. P=R.i.e. P=R.
 If P , is greater than ResponsiblitiesIf P , is greater than Responsiblities .( my.( my
way superiority/ can be misuse or abuseway superiority/ can be misuse or abuse
of power).of power).
 If R, is greater than the PowerIf R, is greater than the Power, results in, results in
frustration bcos the person has not thefrustration bcos the person has not the
necessary power to carryout their requirednecessary power to carryout their required
tasks.tasks.

SCALAR PRINCIPLESCALAR PRINCIPLE
The clearer the line of authority from theThe clearer the line of authority from the
ultimate management position in anultimate management position in an
enterprise to every subordinate position,enterprise to every subordinate position,
the clearer will be the responsibility forthe clearer will be the responsibility for
decision making and more effective will bedecision making and more effective will be
organization communication.organization communication.

FORMS OF AUTHORITYFORMS OF AUTHORITY
 LINE AUTHORITYLINE AUTHORITY
 STAFF AUTHORITYSTAFF AUTHORITY
 FUNCTIONALFUNCTIONAL
AUTHORITYAUTHORITY

LINE AUTHORITYLINE AUTHORITY
(KEY POINTS)(KEY POINTS)
 Line AuthorityLine Authority is directis direct
supervisorysupervisory
authority from superior toauthority from superior to
subordinatesubordinate
 It flows in a directIt flows in a direct chain ofchain of
commandcommand
from the top of the company to thefrom the top of the company to the
bottombottom

 It exists in all organizations as anIt exists in all organizations as an
uninterrupted scale or series of stepsuninterrupted scale or series of steps
 SupervisorsSupervisors -- in line departments,-- in line departments,
such as marketing and production –such as marketing and production –
give direct orders, evaluategive direct orders, evaluate
performance, and reward or punishperformance, and reward or punish
those employees who work for themthose employees who work for them

 It creates aIt creates a unity of commandunity of command thatthat
helps employees know to whom theyhelps employees know to whom they
are accountable, and whom to go to withare accountable, and whom to go to with
a problema problem

LINE FUNCTIONLINE FUNCTION
Are those that have the direct impact onAre those that have the direct impact on
accomplishment of the objectives of theaccomplishment of the objectives of the
enterprise .enterprise .
Decision makingDecision making areas of anareas of an organizationorganization
associatedassociated with itswith its dailydaily operationsoperations suchsuch
asas purchasingpurchasing,, manufacturingmanufacturing, and, and sellingselling..

STAFF FUNCTIONSTAFF FUNCTION
Are those that help the line persons workAre those that help the line persons work
most effectively in accomplishing themost effectively in accomplishing the
objectives.objectives.
 AdvisoryAdvisory,, analysisanalysis, and support functions, and support functions
such as accounting, planning,such as accounting, planning,
transportation provided to production (line)transportation provided to production (line)
employees.employees.

STAFF AUTHORITYSTAFF AUTHORITY
 Staff AuthorityStaff Authority is more limited authorityis more limited authority
to adviseto advise
 Staff Supervisors help line departmentsStaff Supervisors help line departments
decide what to do and how to do it butdecide what to do and how to do it but
do not have the authority to make finaldo not have the authority to make final
decisionsdecisions

STAFF AUTHORITYSTAFF AUTHORITY
 They coordinate and provideThey coordinate and provide
technical assistance or advice to alltechnical assistance or advice to all
advisors, such as accounting,advisors, such as accounting,
human resources, informationhuman resources, information
technology, research, advertising,technology, research, advertising,
public relations, and legal servicespublic relations, and legal services
etcetc

FUNCTIONAL AUTHORITYFUNCTIONAL AUTHORITY
F.A is the right that is delegated to anF.A is the right that is delegated to an
individual or a department to controlindividual or a department to control
specified processes, practices, policies, orspecified processes, practices, policies, or
other matters relating to activitiesother matters relating to activities
undertaken by persons in otherundertaken by persons in other
department.department.

DECENTRALIZATIONDECENTRALIZATION
The tendency to despair decision makingThe tendency to despair decision making
authority in an organized structure.authority in an organized structure.

THE NATURE OFTHE NATURE OF
DECENTRALIZATIONDECENTRALIZATION
DecentralizationDecentralization is the extent tois the extent to
which decision-making authority iswhich decision-making authority is
pushed down the organizationpushed down the organization
structure and shared with manystructure and shared with many
lower-level employeeslower-level employees

KINDS OFKINDS OF
CENTRALIZATIONCENTRALIZATION
 Centralization Of Performance:-Centralization Of Performance:-
geographically characterised , companygeographically characterised , company
opertaing in single location.opertaing in single location.
Departmental CentralizationDepartmental Centralization:-:-
refers to concetration of specialisedrefers to concetration of specialised
activities , maintenance for a whole plantactivities , maintenance for a whole plant
may be carried out by single deparment.may be carried out by single deparment.

KINDS OFKINDS OF
CENTRALIZATIONCENTRALIZATION
 Centralization as an aspect ofCentralization as an aspect of
management:-management:- is the tendency ot restrictis the tendency ot restrict
delegation of decision making . A highdelegation of decision making . A high
degree of authority is held at or near thedegree of authority is held at or near the
top by managers in organizationaltop by managers in organizational
hierarchy.hierarchy.

STEPS IN DELEGATINGSTEPS IN DELEGATING

How Authority is DelegatedHow Authority is Delegated
Authority is delegatedAuthority is delegated when a supervisors givewhen a supervisors give
subordinates discretion to make decisions. Thesubordinates discretion to make decisions. The
process of delegation involves :-process of delegation involves :-
Determining the resultsDetermining the results expected from the position.expected from the position.
Assigning taskAssigning task to the position.to the position.
Delegating authorityDelegating authority for accomplishing these task.for accomplishing these task.
Holding the personHolding the person responsible for theresponsible for the
accomplishment of the tasks.accomplishment of the tasks.

How Authority is DelegatedHow Authority is Delegated
In practice it is impossible to split thisIn practice it is impossible to split this
process since expecting a person toprocess since expecting a person to
accomplish goals without giving authorityaccomplish goals without giving authority
to achieve them is unfair, as is delegatingto achieve them is unfair, as is delegating
authority without knowing the end resultsauthority without knowing the end results
for which its been used . Moreover , sincefor which its been used . Moreover , since
the superior’s responsiblities cannot bethe superior’s responsiblities cannot be
delegated.delegated.

Art of DelegationArt of Delegation
 Personal attitude towards delegation.Personal attitude towards delegation.
 ReceptivenessReceptiveness
 Willingness to let go.Willingness to let go.
 Willingness to let others make mistakes.Willingness to let others make mistakes.
 Willingness to trust subordinates.Willingness to trust subordinates.
 Willingness to establish and use broadWillingness to establish and use broad
controls.controls.

PERSONAL ATTITUDESPERSONAL ATTITUDES
TOWARD DELEGATIONTOWARD DELEGATION
 Receptiveness:Receptiveness:

Delegation is most effective when Manager isDelegation is most effective when Manager is
receptive of ideas of the subordinatesreceptive of ideas of the subordinates

NIH (Not Invented here) – The idea belongs toNIH (Not Invented here) – The idea belongs to
someone else, not the managersomeone else, not the manager
 Willingness to Let Go:Willingness to Let Go:

People who have moved up the ladder mustPeople who have moved up the ladder must
not interfere in decisions of the subordinates.not interfere in decisions of the subordinates.

Ex: Hiring secretary.Ex: Hiring secretary.

PERSONAL ATTITUDESPERSONAL ATTITUDES
TOWARD DELEGATIONTOWARD DELEGATION
 Willingness to Allow Mistakes byWillingness to Allow Mistakes by
SubordinatesSubordinates
 Willingness to TRUST SubordinatesWillingness to TRUST Subordinates
 Willingness to Establish & Use broadWillingness to Establish & Use broad
ControlsControls

Advantages ofAdvantages of
 Relieves top management burden.Relieves top management burden.
 Encourages decision making and knowing theEncourages decision making and knowing the
authority and responsiblities.authority and responsiblities.
 Gives managers more freedom andGives managers more freedom and
independence in decision making.independence in decision making.
 Promotes broad control .Promotes broad control .
 Promotes development of general managers.Promotes development of general managers.
 Aids in adaptation in fast-changing environment.Aids in adaptation in fast-changing environment.

Limitations ofLimitations of
 Makes difficult to have a uniform policy.Makes difficult to have a uniform policy.
 Increase complexity of co-ordination .Increase complexity of co-ordination .
 May results in loss of some control by upperMay results in loss of some control by upper
level managers.level managers.
 Can be limited by the availability for qualifiedCan be limited by the availability for qualified
Managers.Managers.
 Involves considerable expenses for trainingInvolves considerable expenses for training
managers.managers.
 May not be favored by economical scale ofMay not be favored by economical scale of
organization.organization.

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