CHAPTER TWO
PRINCIPLES OF ORGANISATION
1,Span of control-refers to the number of employees who report to a manager or number of subordinates that one manager can supervise directly. It is also called span of management ,span of supervision etc.
Span of control will depend on the following factors
- Ability of both subordinates and manager
- Level of superior hierarchy
- Faith in subordinates
- Nature and type of work
- Physical dispersion of subordinates
- Need for communication
- Types of organization and management
2, Delegation– Is the act of assigning formal authority and responsibility for completion of specific activities to subordinates
Barriers to delegation
Managers may be reluctant to delegate because of several reasons
- Negative personal attitudes
- Un receptiveness of other peoples view
- Unwillingness to let go
- Unwillingness to let others make mistakes
- Perceived threat
- A feeling of inadequacy
Subordinates may require delegation because
- Lack of training
- Lack of incentives
Guidance for effective delegation
- Grant proper amount of authority
- Define the results expected
- Consider the capabilities of the subordinates
- Make sure the authority is clearly stated
- A supportive climate
- Free communication
- Develop a willingness to delegate
- Follow unity of command and chain of command
Advantages of delegation
- Improves morale
- Decisions are likely to be better
- Enables superior to perform higher levels of work
- Enhance prompt action
- Tool of development of subordinates
Disadvantages of delegation
- May make serious mistakes
- Mayn’t put in maximum efforts as the supervisor would do
- If you assign responsibility without authority delegated work will not be properly done
- If you delegate work to someone who avoids decisions he will not make mistakes but the work will suffer
3, DECENTRALISATION OF AUTHORITY
Decentralization is the systematic effort to delegate to the lowest level authority except that what can only be exercised at the central point .Decentralization is the opposite of centralization which is the systematic and consistent reservation of authority in a few hands at top. Decentralization implies a greater power to persons and places away from the center. It also means a lot of important decisions will be made at the lower levels without being subjected to prior approval of higher authority.
FACTORS THAT INFLUENCE DEGREE OF DECENTRALISATION
-Nature of growth of the enterprise.
-Outlook of top management
-Size of and dispersal of operation
-Extent of dispersion
-Nature of functions.
-Availability of able management.
advantages of decentralisation
-Relief of top management
-Motivation of surbordinates.
-Intimate relationships
-Sense of competition
-effective control.
disadvantages of decentralisation
-lack of control
-Costly
-Lack of able managers
