Organising Test - 3

Accountability is the obligation to complete the job or to meet the responsibility.  It arises from responsibility.

Under decentralisation, the authority is systematically divided at every level of management. The management is entrusted with operational authority to take decisions on jobs assigned to them.

Centralisation refers to concentration of power or decision making authority in the hands of top level management. The middle and lower level of managers have less freedom of actions.

Authority is the right to take decision due to formal managerial position. It determines superior subordinate relationship. It flows downward from superior to subordinate.

Informal organisation does not have systematic working. Source can not be known. It gives more importance to satisfaction of individual intetest as compared to organisational interest. Thus it spreads rumours.

Functional organisation is formed on the basis of functions or jobs. Example Production deptt includes jobs related to production, the jobs related with marketing to  Marketing deptt, the jobs related with finance to Finance deptt. etc.

Authority arises from formal job positions. It flows from top to bottom.  Superior communicates his decisions to subordinates expecting compliance from him as per his directions. Thus it involves right to command.

For delegation to be effective, authority granted must be equal to the assigned responsibility.  If authority is more than responsibility then it may lead to misuse of authority and If responsibility is more than authority then the work will not be done effectively.

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.

Decentralisation refers to distribution of power and authority at every level of management. Thus it increases the role of subordinates and provides them more autonomy.