lecture no 6_chapter no 9

8/3/2019 Lecture No 6_Chapter No 9

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Line/ Staff Authority,Line/ Staff Authority,

Empowerment &Empowerment &DecentralizationDecentralization

ChapterChapter

99

Lecture TopicsLecture Topics

Definition of Power

Bases of Power

Definition of Authority & Types of

Empowerment & its Impacts

Centralization & De-centralization

Delegation of Authority

PowerPower

DefinitionDefinition:

The ability of individuals or groups toinduceor influence thebeliefsoractionsof

other persons or groups.

ExplanationExplanation:

To get others to act in a certain way.

Power is the ability, as opposed to the right, to get

others to act in a certain way. Informal leaders often have the ability to influence

behavior in the absence of formal authority.

Bases of PowerBases of Power

Legitimate power:Arising from position and derived fromthe cultural system of rights and duties / obligations.

Position accepted as legitimate by the public.

EX:Royal positions kings - Ministerial positions - TrafficPolice

Referent Power Is that influence which persons exercise

to influence others owing to ones / their commandingrespect among the public.

Ex:Sports persons, Cine stars

Reward Power: Power in granting rewards.

Ex:CEOs, Professors, Coercive Power:Power to punish.

Ex:Police authorities, Law enforcing agencies


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AuthorityAuthorityDefinitionDefinition

The right in a position to exercise discretion

in making decision affecting others.

Ex lanationEx lanation

Derived from Authorization

The supervisor has the authority to act on behalf ofthe organization in matters of directing work, hiringand disciplining employees.

Authority legitimized by the organization:

Organization stands behind the supervisor in his/her decisions.

Types of AuthorityTypes of Authority

There are three types of authority:

Line authorit

Staff authority

Functional authority

Line AuthorityLine Authority

Definition:

The right of a supervisor to exercise directsupervision over a subordinate related to theorganizations primary purpose.

ExplanationExplanation

Related to the productionand/or delivery of

products or services. Those associated with production are described

as line supervisors.

Staff AuthorityStaff Authority

The right to advise or assist thosewith line authority.

line functions


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Line/ Staff FunctionsLine/ Staff Functions

Line functions:Those having directimpact on the accomplishment of theorganizational objectives.

Ex: Production, Sales, (Finance)

Staff functions:Those helping the linepersons work more effectively inaccomplishing the objectives.

Ex: Purchase, Design, R&D, HR,Maintenance, Service, QC,..

NoteNote: LINE: LINE /STAFF AUTHORITY/STAFF AUTHORITY

Line and staff are distinguished byauthorityrelationshipsand not by what people do.

EX:A department like R&D, DESIGNS may

stand in a predominantly staff positionwith res ect to other de artments butwithin the department, are linerelationships.

Ex: VP Production generally linefunction, but, when headvisesthe CEOon Cos production policy, the

relationshipisstaffin nature.

Functional AuthorityFunctional Authority

The right given by higher managementto specific individual/ department to

control specified processes, practices,

policies or other matters relating toactivities undertaken by persons in

other departments.

Functional AuthorityFunctional Authority

Ex:Companys Financial Controllerprescribing the system of accountingsystem for the entire Co.

EX:QC specialist establishing QC

practices for the entire corporate groupof cos.


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SCALAR PRINCIPLESCALAR PRINCIPLE

Clearertheline of authority(from

the ultimate management to everysu or na e pos on c earerw

be theresponsibilityfor decisionmaking and more effective will be

organization communication.

EmpowermentEmpowermentDefinition:

The act ofgiving authority and powerto exercisedecision making without seeking powers fromones superiors.

Parameters to be considered:

, , ,acceptance by the subordinates, Integrity

Power beingPand Responsibility beingR

P = R symbolizesBalancedsituation,

P > RsymbolizesAutocraticBehavior

P< RsymbolizesFrustrationleading to

inefficiency.

Impacts of EmpowermentImpacts of Empowerment

A feeling of intrinsic motivation

Workers perceive meaning in their work

-determination

CentralizationCentralization

Definition:

The act of bringing together the activities underthe control of a central authority.

Types of Centralization:

Centralization by performance. Co. opera ing ina single location.

Centralization by departments. CentralMaintenance, Central Purchase,.

Centralization as an aspect of Management. High degree of authority held at or close tothe top management


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DeDe--centralizationcentralization

Thetendencytodispersedecision-makingauthorityin an organized

structure. CompleteDeDe--Centralization(No Organization)

CompleteCentralization

(No Organization)

Authority Delegated

Authority not Delegated

Key Aspects of DeKey Aspects of De--centralizationcentralization

More than Delegation.

Reflection of Management philosophy.

Selection and Training of personnel .

Essential element of a successfulmanagerial system.

Signifies readiness to accept newchallenges, flexibility, globally dynamicenvironment.

Advantages of DeAdvantages of De--CentralizationCentralization

Relieves top management.

Encourages decision making

Develops independent thinking

Leads to establishing broad controls andmeasures.

Increased motivation.

May establish profit centers.

Aids product diversification. Helps in developing general mangers

Aids developing flexibility and adaptation.

Difficult to have a uniform policy.

Tough to coordinate multiple decentralizedunits

May lead to loss of control by top

Limitations of DeLimitations of De--CentralizationCentralization

management

Difficult in establishing control measures.

Short of good managerial talent is a set back.

Calls for expensive training of managers. May not be feasible for certain operations

under economy of scale.


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Delegation of AuthorityDelegation of Authority

The assignment of directauthority and responsibility to asubordinate to complete tasks

for which the manager is

normally responsible.

Delegation of Authority

How to be Effective DelegatorHow to be Effective Delegator

1. Receptiveness

2. Willingness to let go

3. Willingness to allow mistakes bysubordinates

4. Trusting subordinates

5. Establishing & using broad Controls

Golden Rule of DelegationGolden Rule of Delegation

What a superior delegates; ishisauthorityandnever the

responsibility.

You may hold yoursubordinateresponsible,

stillyou are accountableforall the responsibility.


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Guidelines to Overcome Weak DelegationGuidelines to Overcome Weak Delegation

Assignment of tasks & delegation ofauthority in light of expected results.

Selection of right person for the job.

Establish Proper Controlsright methods for measures of control.

Reward effective delegation andsuccessful assumption of authority.

lecture no 6_chapter no 9

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