central is at ion

8/8/2019 Central is at Ion

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Centralisation and

Decentralisation


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Centralisation

Centralisation is the systematic and consistent reservationof authority at central points within the organisation.

In centralisation, little delegation of authority is the

rule.

Power and discretion are concentrated at the top levels.

Control and decision making reside at the top levels of

the management.

Absolute centralisation is untenable because it meanthat subordinates have no duties, power, or authority.

Most organisation start with centralisation of authority

initially.


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Centralisation

There are certain special circumstances forcingmanagers to reserve authority and centralise

decision making power.

To facilitate personal leadership.

To provide for integration.

To handle emergencies


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CentralisationAdvantages : There is uniformed decision making

Duplication of effort is eliminated

Highly skilled personnel are available to the whole

organisation and not just the one unit;

Greater control; Economies in staffing;

Economies of Scale e.g. negotiation of better rates

for office supplies etc.,

Easier communication.


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Centralisation

Disadvantages The organisation is bureaucratic;

Power is concentrated within the upper

management levels with key decisions takenby a few top managers;

Rigidity;

Delays in decision making; Interrupt personal development


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Decentralisation Decentralisation is where the authority and

power of decision making is given to the lowerlevels of the organisation except that which can

be exercised at central points.

Absolute decentralisation if fictitious in practice,degree of decentralisation vary organisation to

organisation.

Types of Decentralisation

Profit centres/ Responsibility centre:

Cost/Expense Centres

Investment Centres


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Decentralisation

Decentralisation: Advantages Lower levels of management will have the power to

make decisions;

The decisions are made by people who know and

understand situation;

There is recognition of local conditions;

The increased power gives improved morale;

There is personal development due to he increasedresponsibility;

The organisation is more responsive to the environment


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Decentralisation

Decentralisation: Disadvantages There is a lack of uniformity of decision making.

People have different views and so individuality may

affect those decisions made.

Inter-unit conflict may arise.

Managers may not be willing to accept responsibility.

There is a loss of control at the top of the organisation

structure.

Loss of some economies of scale.

Development of a narrow departmental view.


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Motivation


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Motivation

According to Scott Motivation is a process of stimulating

people to action to accomplish desired goals. In other

words it is the set of forces that cause people to behave in

certain ways.

Motivation Process ( Generalised Model)

Need

(deficiency)

Behaviour

Work hard

Find another job

Become union member

and pressure

management

Goal

Get a pay

raise

Tension Reduction


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Importance of Motivation

Productive use of resources Increased efficiency and output

Achievement of goals

Development of friendly relationships

Stability in workforce

Determinants of Motivation

The Individual

The organisation

The environment


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The Need Hierarchy Approach

(Maslow)Essential components of the theory

Adult motives are complex: No single motive determinesbehaviour, rather a number of motives operate at the same time.

Needs form a hierarchy: lower level needs must at leastpartly be satisfied before higher level needs emerge

A satisfied need is not a motivator:

There is a distinction between needs: higher level needs

can be satisfied in many more ways than the lower level needs.

People seek growth: They want to move up the hierarchy


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(Maslow) People must, in a hierarchical order, satisfy five needs:

Physiological needs for basic survival and biological function.

Security needs for a safe physical and emotional environment.

Belongingness needs for love and affection.

Esteem needs for positive self-image/self-respect and recognition and

respect from others.

Self-actualization needs for realizing ones potential for personal

growth and development.


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Maslows Hierarchy of Needs


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Weaknesses of Maslows theory

Five levels of need are not always present.

Ordering or importance of needs is not always thesame.

Cultural differences in categories and hierarchies.


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The Two-Factor Theory (Herzberg)

Peoples satisfaction and dissatisfaction areinfluenced by two independent sets of factors

motivation factors and hygiene factors.

Theory assumes that job satisfaction and job

dissatisfaction are on two distinct continuums:

Motivational factors (work content) are on a

continuum that ranges from satisfaction to no

satisfaction.

Hygiene factors (work environment) are on a

separate continuum that ranges from

dissatisfaction to no dissatisfaction.


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The Two Factor Theory of Motivation


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The Two-Factor Theory (Herzberg) Motivation is a two-stage process:

Ensuring that the hygiene factors are not deficientand not blocking motivation.

Providing employees the opportunity to

experience increase motivational factors through

the use of job enrichment and the redesign of

jobs.

Criticisms of the Two-Factor Theory

Interview findings are subject to differentexplanations.

Sample population was not representative.

Subsequent research has not upheld theory.


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Alderfers ERG TheoryNeed Level Description

Growth Needs

(Esteem, self- actualisation

needs)

Needs for self-development

and productive work

Relatedness Needs

(Social needs)

Needs to have good

interpersonal relations

Existence Needs

( physiological safety)

Basic needs for human

survival


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ERG Theory

In this theory Alderfer simplify the Maslows

need priority theory but it also remove therestriction about the activation of needs in any

hierarchical order.

He suggested that more than one need may beoperative or activated at the same point of time.

ERG theory provides a specific mechanism for

downward movement in the hierarchy.


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Dislike work will avoid it

Must be coerced, controlled,

directed, or threatened with

punishment

Prefer direction, avoid

responsibility, little ambition,

want security

Do not dislike work

Self direction and self control

Seek responsibility

Imagination, creativity widely

distributed

Intellectual potential only

partially utilized

Douglas McGregor Theory X & YDouglas McGregor Theory X & Y

Theory X Assumptions

Theory Y Assumptions

1906-1964


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Douglas McGregor Theory X & Y

Few companies today stilluse Theory X

Many are trying Theory Ytechniques


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McGregors ApproachTheory X Theory Y

1) Production centered 1) Employee centered

2) Autocratic 2) Democratic

3) External control 3) Internal control4) Closer supervision 4) General supervision

5) Initiating structure 5) Consideration

6) Directive 6) Supportive

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