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What is Centralization and De-Centralization of the Authority?

Centralization of the Authority
After the delegation of the authority, the delegation of the decision making is obtained and consequently after this, the acts for the implementation are very much required. So it can be said that the authority for taking the decisions can be spread with the help of the delegation of the authority.

The centralization of the authority can be done with – in a few seconds, if complete concentration is given on the decision making at any position. This concept is generally referred to as the centralization of the authority. The centralization can be done with a position or at a level in an organization. Hence, it can be said that the extension of the organization is referred to as the centralization of the authority. Here the decision making must be concentrated in a few hands.

The advantages of the centralization of the authority can be summarized as the follows –
1. Very high speed.
2. Well defined responsibility.
3. Depends largely on the general consensus.
4. Decision making is very clear.

De–Centralization of the Authority
In an organization, the decentralization of the authority can be referred to as allowing the large number of the persons within an organization to take the decisions. In the decentralization of the authority, no concentration is given on the decision making.

The major disadvantages of the decentralization of the authority can be summarized as the follows –
1. General slackness in the discipline.
2. Too much meddling in the process.
3. Existence of the political culture.
4. Loss in the effectiveness.

What are the Types of the Organizational Authorities?

Types of the Organizational Authorities
1. Line Authority

a. The major function of the authority includes directing the human beings to serve for the united objective, for fulfilling the purpose of the organization.
b. The delegation of the authority makes sure that these humans take the various needed decisions, the actions.
c. The authority delegation makes sure that these humans implement the plans and the various policies.
d. The authority that is provided to an individual by the organization helps in creating the confidence in an individual for any type of the work he does.
e. One of types of the authority is the line authority.
f. Acts as the most common type of the authority.
g. The line authority comes from the top with the help of the levels, till the final operational person in line.
h. The person who is next in the line should assume the work of a boss in the absence of the first one.
i. More is the length of a line of the authority; more is the elongation and the cost of the decision.
j. The cost increases as a result of the structure.
k. Resulting in the slow and routine decision making.
l. Impact of the initiatives is lost as a result.
m. Discipline in the organization also increases.
n. But the productivity decreases.

2. Staff authority

a. Here some people are given the authority to advice.
b. These people are the ones who are having the expertise in the specific field.
c. A legal expert can be appointed for providing the much needed support to the marketing manager.
d. Expert knowledge is also provided.
e. Comparatively less costly.
f. The main requirement of the staff authority is the backing up of the management.

3. Functional authority

a. The intervening within the line authority for the functional purpose is referred to as the functional authority.
b. Here the authority is given to the inspectors, who work on the line but not necessarily on the same line.
c. The main responsibility is to inspect the whole work, which is being done by the line.
d. The personnel manager is provided the power or the right to intervene in the line manager for any of the personnel function.

Different levels of the Authority
1. Organization levels

A. The various levels of the organization are generally born as a result of the effect of the delegation of the authority.
B. The three levels of the organization that arise can be summarized as the follows –

a. The Operation Level Management –
I. This level is referred to as the operation level management as the various operational managers are involved in the actual implementation.
II. Acts as the front line work with the day to day decision making of the structured nature.
III. To a great extent, this level is related to the man machine relationship and the utilization of the resources.
IV. Operational managers include the workers and their supervisors.

b. The Middle Level Management –
I. This level is referred to as the Middle level management as it is placed between the operation level and the top level.
II. Here the various decisions pertaining to the actual use of all the resources and for a span of the time extending upto the financial year are taken.
III. With the help of these decisions, the operational financial results on a year to year basis can also be improved.

c. Top Level Management –
I. People like the Chief Executive Officer (CEO), the Managing Director, the General Managers, the Presidents, and the Vice Presidents Etc. are involved in this level.
II. The main responsibility of these people in this level of the management is to do the planning of the business.
III. These people also look after the performance of the organization and also play a very vital role of the scanners by which they have to collect or scan the critical information from the internal and the external environment.

2. Vertical organizations –

A. Help in the determination of the authority and the responsibility of any person working in an organization.
B. This determination can be done by providing a position at a particular level to that person.
C. The various levels of the vertical organization can be summarized as the follows –

I. The Operational level – Includes the unskilled, the skilled, the supervisors etc.
II. The Middle level – Includes the assistant managers, the senior managers, and the executives.
III. The Top level – Includes the general managers, the vice presidents, the presidents etc.

D. These three levels are further divided into emolument depending on the manager levels 1, 2, 3 etc.
E. More are the levels; more the management becomes vertically oriented.
F. The more are the levels; more is the cost.
G. More are the levels; more are the opportunities for the manager for the promotions.

3. Horizontal organizations –

A. Also called as the flat organizations.
B. The organizations are referred to as the horizontal or the flat organizations, when the levels in the organization are few in the number.
C. In such organizations, one very important point that forms the basis of this type of the organizations is that the distance between the operational management level and the top level management level is very less.
D. Great emphasis is given on reducing or keeping a control over the costs of the levels.
E. In this type of the organization, the designing of the jobs is done in such an elegant way that the people feel ownership in the work they do and it’s final outcome.
F. The number of the promotions for an individual becomes less, mainly due to the reason of the lesser number of the levels that are present.

4. Circular organizations –

A. Involves a center of an organization.
B. This center performs a major responsibility of guiding and controlling the various activities.
C. Absence of the authority relations.
D. Support relations with some authority required for the implementation of the direction, are present in such organizations.
E. Great emphasis is given on the self managed units that are almost equidistant from the center, from the point of the view of the relationship.
F. Existence of more creativity.
G. Presence of more independence.

What is Departmentation and How Is It Done?

Introduction
As one gets from the name, the word departmentation refers to the division of the labor, instead of the individuals, of the group of the various types of the activities that are involved. The departments are formed from the related activities that have the ability to form various semi independent units.

The process of the departmentation generally follows no stiff rules but the main purpose of carrying on with the process of the departmentation is to provide the level of the convenience to each of the organization.
The whole or the total business activity is divided in to the work units as per the convenience of all the organizations.

But the basis on which the departmentation may be or can be done, can be summarized as the follows –
1. Departmentation by the time –

a. The main point here, on which the departmentation is based, is the ‘time’.
b. People can be easily supervised.
c. Working as the exemplified by the shift working in the factories, acts as a great example for explaining the departmentation by the time.

2. Departmentation by the location or the place –

a. A really good example of this type of the departmentation depending on the location can be the regional offices spread over the number of the places, branch offices etc.
b. One of the possibilities includes the presence of the manufacturing activity at one place and the marketing activity at a different place.

3. Departmentation by the functions –

a. A separate department can be formed depending on the nature of the activity that is to be performed.
b. The various activities that are closely related can be brought together in this type of the departmentation.

4. Departmentation by the processes –
a. Different processes are converted to the different departments in this type of the departmentation.
b. For example, various processes like the spinning, the weaving, the dyeing etc are involved in a textile mill and depending on these processes only, new departments have come up.

5. Departmentation by the divisions –

a. Before going any further, it is very important to understand the meaning of the word ‘divisions’.
b. The divisions can be defined as the extensions of the concept of the departments.
c. In this type of the departmentation, the departments act as the cost centers.
d. The divisions act as the profit centers.
e. The divisions are accountable to the income as well as the expenditure.

6. Strategic Business Units (SBU) –

a. During the engagement of the organization in the multiple businesses, there is a dire need for treating each of the business unit as a strategic unit and for fulfilling this purpose, an independent competitive business approach is very essential and here these units are referred to as the strategic business units.

Advantages of the process of the Departmentation
1. The departmentation is greatly based on the logics.
2. With the help of the departmentation, proper attention can be given to the various activities and hence, resulting in the growth of the organization.
3. Synergy can be brought in to the various results.
4. The departmentation results in establishing the team spirit and the co–operative culture.

What is the concept of Culture? Explain Tools used by the Organizations?

The concept of the ‘Culture’
One’s own culture is generally formed depending upon the leadership and the various managerial values that are being practiced in an organization. The culture involves the stabilized set of the values at any time that can be tried by the people to adhere to generally because such values are generally appreciated by the management of the organization. Presence of the discipline is very much critical and also very beneficial as with the help of the discipline, the various uniform values can be established.

By organizing, a suitable work environment can be produced that plays a great role in carrying out the various types of the activities in a very efficient way. With the help of the culture, the work of the management is eased and also has a very positive effect on the work ethos of an organization. Now before going any further, it becomes very essential to understand the meaning of the ‘Work Ethos’.

The work ethos refers to the environment that is present around the work. The effect on the working interest of the persons involved can be produced with the help of the working environment. With the help of work ethos, one can define what is considered to be a good work.

Reasons accounting for the Degeneration of the organizations
1. Lack of the leadership.
2. Lack of the delegation of the power.
3. Lack of the growth of the business.
4. Requirement of the re organization.
5. Lack of the conflict resolution.

Methods to increase the efficiency of an organization
1. Creating a very good structure.
2. Putting life into the structure.
3. Presence of a very good leadership.
4. Use of very good and efficient and also result oriented systems and the procedures.
5. Creating balance in the structure.

Tools used by the Organizations
1. Organization Chart –
a. Shows the authority positions of each and every person in the organization.
b. Can be used to depict the numerical strength, the position and the authority links of the staff.
c. Provides a great amount of the clarity in tackling the organizational problem.

2. Organization Manual –
a. Includes the introduction of the business of the organization, includes the history, the objectives, the policies, the rules, the regulations and the information on the persons who are working along with the organization chart in a written form.
b. Helps in easing the communication and the implementation of the organization’s work.
c. Brings great amount of the transparency into the working of an organization.
d. The unity in the organization can also be increased to some extent with the help of the knowledge that is provided by the manual to the employees.

3. Description of the position –
a. The structure of the organization becomes very much clear in the nature.
b. The various features of the position like the designations, the various tasks and the responsibilities can be efficiently understood.
4. Organization Performance Audit –
a. Involves periodical organizational audit by an outside party.
b. As a result of these audits, people start thinking of the organization, in which they are serving.

What is Planning?

Introduction
Whatever we do or perform in our day today life, which may include doing some work at the job or may be doing some work at the home, to do it in an efficient way and to obtain good results it is very necessary to plan every – thing so that one is prepared for the various activities involved in the process and is able to face any type of the problem that may arise during the process.

The management is very contingent to a situation then present but is also very performance oriented in a given situation. The main function of the management is to plan everything, which mainly includes the planning, the organizing, the staffing, the maintaining the control over the various things and also to maintain the coordination between the different departments. For the proper working of the management, it is very important to classify the various functions of the manager in the suitable groups of the activities. This step is very much logical in the nature as the managers can play a very defining role in the proper working of the management.

We can always learn from the past and at the same time we can also plan for the future, depending on the past and the present. But one major fact is that we can act or take any type of the action only in the present. The mistakes that have been committed in the past can be improved by taking various steps in the present. In the future we can only plan and think but cannot perform anything but when the time for the action comes, it becomes easy to understand everything and take any type of the action with more ease.

Very careful thinking and the planning is very essential, as it saves a lot of time and also the cost is brought down. Hence, the planning can be defined as the process of deciding the future course of the actions in terms of the time, the performance and the cost.

Significance of the Time
In the process of the planning, the importance of the time is very much critical in the nature and has been regarded as the most important criteria in the process of the planning, by the various system analysts. It is very important that we look into the future and then plan everything and get prepared and ready for the different types of the situations that may arise but one very important point to remember here is that whole the time we cannot and should not look into our future. We should look as far as we think it’s worthwhile to do something in the present to make such a future feasible in the nature.

The planning is not just to think about the future but it also involves the forecasting and the prejudging of the future and then forming some lines of the action. The more one thinks of the future, the more one is able to amend the present.

The words short term and the long term indicate the comparison of the time. The short run can be defined as a clear foreseeable future for which the definite actions can be taken but in the case of the long run, one can surely foresee but various definite actions cannot be taken like in the case of the short run. The above explained points are very important to be understood as the whole concept of the planning is largely based on these references.

The decisions that are taken in the short run can sometimes prove to be very inconsistent in the nature. With the longer run thinking, more stability creeps into the operations of the business but these decisions are also accompanied with more number of the risks of various things going wrong.

Factors leading to the failure of the planning
1. Inadequate preparation.
2. Lack of the study.
3. Lack of the vision mars planning efforts.
4. Becomes very haphazard when it is done for a certain group and when many plans are built based on the compromises.
5. Lack of clarity in the objectives and the goals.
6. Absence of the feedback.
7. Lack of the staff control.
8. Inadequacy in defining the various businesses.
9. Absence of the review.

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