Organising Test - 4

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

Delegation begins with sharing of responsibilities with the subordinates. Superior deliberately passes some of his responsibilities to his subordinates. After passing responsibilities the superior shares his authorities.

Authority delegated should be matched with the responsibility. If authority delegated is more than the responsibility then it will be misused. Therefore the authority should be taken back to match with responsibility.

Informal organisation is created automatically due to social interactions among the employees to get psychological satisfaction. Formal organisation is the basis of informal organisation.

Principle of Absoluteness applies to Accountabilty. It means it can never be passed or delegated. The superior always remain accountable for the work delegated to the subordinates.

The managers can not perform all the tasks on their own. To reduce their burden, managers delegate their less important work to their subordinates. So that the managers can concentrate on their important work.

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

Elements of delegation are

• Authority
• Responsibility
• Accountability

Responsibility is derived from authority and accountability is derived from responsibility.

Narrow span of management means a single manager or supervisor oversees few subordinates. This give a rise to a tall organisational structure.

Elements of delegation are

• Responsibility
• Authority
• Accountability

The steps are

• Division of work
• Grouping the jobs and departmentalisation
• Assignment of duties
• Establishing reporting relationship
  

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

The steps are

• Identification and division of work
• Grouping the jobs and departmentalisation
• Assignment of duties
• Establishing reporting relationship
  

Span of management means how many subordinates can be effectively managed by a manager. It depends upon capacity and intelligence level of manager and subordinates, trust in subordinates and nature of job.

Under Informal organisational structure,  there is no fixed path of passing information among employees. The Information can pass from any side to any side. The principle of scalar chain is violated here.

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.

When the size of organisation is large and it deals in more than one type of product. Thus the structure is formed on the basis of product is called divisional structure.

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.

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

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.

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.