Organising Test - 3

Authority is the right to take decision because of managerial position. It determines superior subordinate relationship. It arises through scalar chain in formal organisations due to various job positions. Thus authority is a right to command ones subordinates.

Responsibility means the obligation of subordinates to perfom the duties properly. Subordinates are bound to perform these duties.

Accountability is the final step of delegation process and arises from responsibility.  It means subordinates will be answerable for the non completion of task or final output. It can not be delegated.

Responsibility flows upward. Subordinates will always be responsible to his superior.  Superior can not fully delegate their responsibility.

Authority is the power/right to take decision. It arises from formal job positions in the organisation and flows from superior to subordinate.

The steps are

1. Identification and division of work
2. Grouping the jobs and departmentalisation
3. Assignment of duties
4. Establishing reporting relationship

The steps are

1. Division of work
2. Grouping the jobs and departmentalisation
3. Assignment of duties
4. Establishing reporting relationship

Divisional structure is formed on the basis of product. It is suitable for those organisations which are large in size and are producing multi products. It provides more autonomy of actions.

It is formed deliberately in a planned manner.  It is well defined organisational structure and defines superior subordinate relationship. Employees have to follow rules and regulations.

It arises as a result of social interaction. There no set behaviour and rules. Thus it is flexible in nature.