Centralisation ,

Decentralisation &

Delegation of

Authority, Line &

Staff Relationship

Submitted by:-

Saurav Rawat

where the decision making authority is concentrated amongst a small number of senior managers at the top/centre of the organisational structure.

It limits the number of people involved in the decision making process to a few senior executives

Concentration of decision-making power at the top hierarchy of management is CENTRALIZATION

Senior managers enjoy greater control over the organisation.

The use of standardised procedures can results in cost savings.

The organisation can benefit from the decision making of experienced senior managers.

Where the authority for decision-making is delegated to subordinates in the organisational structure

Sometimes inevitable as a business grows

Decentralization applies to the systematic delegation of authority in an organization-wide context

decision-making to people lower down the organisational hierarchy

Senior managers can concentrate on making long term corporate decisions

Subordinates are likely to have increased motivation because their jobs are enriched.

Day – to – day problems and issues should be resolved more quickly because those closest are making the decisions

Delegation increases flexibility.

Middle and junior managers are better prepared for more senior roles within the organisation.

Lower level managers may make decisions without fully understanding the “big picture.”Lack of communicationLower level managers may have objectives that are different from the objectives of the entire organisationIn a strongly decentralisedorganisation, it may be more difficult to effectively spread innovative ideasSlower strategic decision-makingMore difficult to achieve economies of scale

Due to the fact that all decisions are made at the top it might result in delays in decision-making and communication.

Centralised power and authority might be abused.

Doesn’t give an opportunity to lower level managers/supervisors to develop their managerial skills.

Centralised organisation faces the problem of lower motivation levels among workforce.

The success of organisation depends on the competence of top executives which might be quite risky.

Delegation is the process by which a manager assigns tasks and authority to co workers who accept responsibility for their jobs.

Delegation of authority means assigning work to others and giving them authority to do it

IMPORTANCE OF DELEGATION

Relief to top managers.

Development of managers.

Development of subordinates.

Better decision-making.

Faster decisions.

Specialization.

Job satisfaction.

Promotes inter – personal relationship.

LINE FUNCTIONS ARE THOSE WHICH HAVE DIRECT RESPONSIBILITY FOR ACCOMPLISHING THE OBJECTIVES OF THE ENTERPRISE.

STAFF REFERS TO THOSE ELEMENTS OF THE ORGANISATION THAT HELP THE LINE TO WORK MOST EFFECTIVELY IN ACCOMPLISHING THE PRIMARY OBJECTIVES OF AN ENTERPRISE.

LINE AUTHORITY IS THAT RELATIONSHIP IN WHICH A SUPERIOR EXERCISES DIRECT SUPERVISION OVER A SUBORDINATE – AN AUTHORITY RELATIONSHIP IN DIRECT LINE OR STEPS.

STAFF RELATIONSHIP IS ADVISORY.

THE FUNCTION OF PEOPLE IN STAFF POSITION IS TO INVESTIGATE , RESEARCH AND GIVE ADVICE TO LINE MANAGERS TO WHOM THEY REPORT.