Centralization and Decentralization
February 12, 2025
Basis Recruitment Selection Meaning It is an activity of establishing contact between employers and applicants. It is a process of picking up more competent and suitable employees. Objective It encourages large number of Candidates for a job. It attempts at rejecting unsuitable candidates. Process It is a simple process. It is a complicated process. Hurdles […]
Controlling as a management function involves following steps: Establishment of standards- Standards are the plans or the targets which have to be achieved in the course of business function. They can also be called as the criterions for judging the performance. Standards generally are classified into two- Measurable or tangible – Those standards which can […]
Recruitment is of 2 types Internal Recruitment – is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three – Transfers, promotions and Re-employment of ex-employees. Internal recruitment may lead to increase in employee’s productivity as their motivation level increases. […]
Employee Remuneration refers to the reward or compensation given to the employees for their work performances. Remuneration provides basic attraction to a employee to perform job efficiently and effectively. Remuneration leads to employee motivation. Salaries constitutes an important source of income for employees and determine their standard of living. Salaries effect the employees productivity and […]
Organizations are basically clasified on the basis of relationships. There are two types of organizations formed on the basis of relationships in an organization Formal Organization – This is one which refers to a structure of well defined jobs each bearing a measure of authority and responsibility. It is a conscious determination by which people […]
The organizing process can be done efficiently if the managers have certain guidelines so that they can take decisions and can act. To organize in an effective manner, the following principles of organization can be used by a manager.
According to the principle, the whole work of a concern should be divided amongst the subordinates on the basis of qualifications, abilities and skills. It is through division of work specialization can be achieved which results in effective organization.
According to this principle, all the functions in a concern should be completely and clearly defined to the managers and subordinates. This can be done by clearly defining the duties, responsibilities, authority and relationships of people towards each other.
Clarifications in authority-responsibility relationships helps in achieving co-ordination and thereby organization can take place effectively.
For example, the primary functions of production, marketing and finance and the authority responsibility relationships in these departments shouldbe clearly defined to every person attached to that department. Clarification in the authority-responsibility relationship helps in efficient organization.
According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager.
According to this principle, a manager should be able to handle what number of employees under him should be decided. This decision can be taken by choosing either froma wide or narrow span. There are two types of span of control:-
According to this span, one manager can effectively and efficiently handle a large number of subordinates at one time.
The manager according to a narrow span supervises a selected number of employees at one time. The features are:-
There are certain concerns where decentralization is done in very effective way which results in direct and personal communication between superiors and sub- ordinates and there the superiors can manage large number of subordinates very easily. In such cases, wide span again helps.
Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of authority available, wastages of resources are minimized, communication is affected, overlapping of work is avoided and easy organization takes place.
A scalar chain of command facilitates work flow in an organization which helps in achievement of effective results. As the authority flows from top to bottom, it clarifies the authority positions to managers at all level and that facilitates effective organization.
It implies one subordinate-one superior relationship. Every subordinate is answerable and accountable to one boss at one time. This helps in avoiding communication gaps and feedback and response is prompt.
Unity of command also helps in effective combination of resources, that is, physical, financial resources which helps in easy co-ordination and, therefore, effective organization.
Authority Flows from Top to Bottom |
Managing Director |
↓ |
Marketing Manager |
↓ |
Sales/ Media Manager |
↓ |
Salesmen |
According to the above diagram, the Managing Director has got the highest level of authority. This authority is shared by the Marketing Manager who shares his authority with the Sales Manager.
From this chain of hierarchy, the official chain of communication becomes clear which is helpful in achievement of results and which provides stability to a concern.
This scalar chain of command always flow from top to bottom and it defines the authority positions of different managers at different levels.
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