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    DELEGATION OF

    AUTHORITY

    &

    DECENTRALISATION

    By Group 3

    (DFM Batch I)

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    INTRODUCTION

    1. What is the authority?

    2. What is the delegation?

    3. What is the delegation of authority?

    4. What is decentralization?

    5. What is the responsibility?

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    AUTHORITYAUTHORITY

    Authority refers to the right to make decision,Authority refers to the right to make decision,to perform or supervise activities, and toto perform or supervise activities, and toallocate recourses in order to accomplishallocate recourses in order to accomplishtasks that will achieve organizational goals.tasks that will achieve organizational goals.

    It is a concept of responsibility.It is a concept of responsibility.

    The managers must define authority relatingThe managers must define authority relatingto various activity Authority must be definedto various activity Authority must be definedin term of: What to Delegate, Whom toin term of: What to Delegate, Whom toDelegate, How much to delegate.Delegate, How much to delegate.

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    DEFINATIONDEFINATION

    KootnzKootnz and ODonnelland ODonnell,,

    Authority is the power to command others to actAuthority is the power to command others to actor not to act in a manner deemed by theor not to act in a manner deemed by thepossessor of the authority to further enterprisespossessor of the authority to further enterprises

    or departmental purposes.or departmental purposes.

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    Characteristics Of AuthorityCharacteristics Of Authority

    1.1. Basis of getting things doneBasis of getting things done

    2.2. LegitimacyLegitimacy3.3. Decision makingDecision making

    4.4. ImplementationImplementation

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    Sources ofAuthoritySources ofAuthority

    1.1. The Formal Authority TheoryThe Formal Authority Theory

    BOARD OF DIRECTORS

    GENERAL MANAGER

    SALES MANAGER

    SALES REPRESENTATIVE

    WORKERS

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    22.. The Acceptance ofAuthority TheoryThe Acceptance ofAuthority Theory

    In this Theory authority flows from the superiorIn this Theory authority flows from the superiorto subordinates.to subordinates.

    Effective only when subordinates willingly acceptEffective only when subordinates willingly accept

    authorityauthority

    Ineffective when subordinates lack of readinessIneffective when subordinates lack of readinessto accept authorityto accept authority

    Order of the superior is accepted by theOrder of the superior is accepted by the

    subordinate without any hesitationsubordinate without any hesitation , it is, it isknown as Zone acceptanceknown as Zone acceptance..

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    Zone of Acceptance will be determined by aZone of Acceptance will be determined by a

    number of factorsnumber of factors

    Sincere servicesSincere services

    Rewards will be givenRewards will be given

    Authority in a particular situationAuthority in a particular situation

    Dismissal of the subordinateDismissal of the subordinate

    Account of special knowledgeAccount of special knowledge

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    Subordinate is aware of his statusSubordinate is aware of his status

    Policy of the organization to impose thePolicy of the organization to impose theauthorityauthority

    No other way available than to acceptNo other way available than to acceptauthorityauthority

    ConfidenceConfidence

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    3.3. Competence TheoryCompetence Theory

    This type of authority is invested with PersonThis type of authority is invested with Personbased on the leadership qualitiesbased on the leadership qualities

    Only one person gets higher position &Only one person gets higher position &leadership qualities possessed by himleadership qualities possessed by him

    MANAGER

    ASSISTANTMANAGER

    TEAM LEADER

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    DELEGATIONDELEGATION

    Delegation is the art of getting work doneDelegation is the art of getting work done

    through others.through others.

    Delegation refers to the transfer of rightsDelegation refers to the transfer of rights

    from one person to another person.from one person to another person.

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    DEFINATIONDEFINATION

    LouisLouis AA.. AllenAllen

    DelegationDelegation isis thethe dynamicdynamic ofof management,management, itit isis

    thethe processprocess aa managermanager followsfollows isis dividingdividing thetheworkwork assignedassigned toto himhim soso thatthat hehe performperform thatthatpartpart whichwhich onlyonly he,he, becausebecause ofof hishis uniqueuniqueorganizationalorganizational placement,placement, cancan performperform effectivelyeffectively

    andand soso thatthat hehe cancan getget otherother toto helphelp themthem withwithwhatwhat remainsremains..

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    Importance of DelegationImportance of Delegation

    It helps the manager to concentrate on theIt helps the manager to concentrate on the

    important work of planning, organizing &important work of planning, organizing &controlling.controlling.

    It enables a person not only to discharge hisIt enables a person not only to discharge his

    responsibility but also to discharge it effectively &responsibility but also to discharge it effectively &economically.economically.

    It is tool for motivating and eliminatingIt is tool for motivating and eliminatingcumbersome information system.cumbersome information system.

    It Is method Of Training subIt Is method Of Training sub--ordinates & buildingordinates & building

    morals.morals.

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    Element of DelegationElement of Delegation

    1. Assignment of Duties or responsibilities1. Assignment of Duties or responsibilities

    2. Delegation of authority2. Delegation of authority

    3. Accountability3. Accountability

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    Principles of DelegationPrinciples of Delegation

    1.1. Delegation to go buy results expectedDelegation to go buy results expected

    2.2. No delegation of responsibilityNo delegation of responsibility

    3.3. Authority and responsibility shouldAuthority and responsibility shouldcommensurate with each othercommensurate with each other

    4.4. Unity of commandUnity of command

    5.5. Definition of limitations of authorityDefinition of limitations of authority

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    Types of DelegationTypes of Delegation

    1.1. General DelegationGeneral Delegation

    2.2. Specific DelegationSpecific Delegation

    3.3. Written DelegationWritten Delegation

    4.4. Unwritten DelegationUnwritten Delegation5.5. Formal DelegationFormal Delegation

    6.6. Informal DelegationInformal Delegation

    7.7. Downward DelegationDownward Delegation

    8.8. Accrued DelegationAccrued Delegation9.9. Sideward DelegationSideward Delegation

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    Top level management cant personally performTop level management cant personally performall the tasks needed to achieve the organizationalall the tasks needed to achieve the organizationalgoals, they must use the chain of command togoals, they must use the chain of command todistribute authority among the other organizationaldistribute authority among the other organizationalmembers to ensure that the work is completed.members to ensure that the work is completed.

    DELEGATION OF AUTHORITY

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    AdvantagesAdvantages

    1.1. Basis of effective functioningBasis of effective functioning2.2. Saving of timeSaving of time3.3. Reduction of workReduction of work4.4. Opportunity for developmentOpportunity for development5.5. Benefit of specialized serviceBenefit of specialized service6.6. Delegation of authority enables effectivesDelegation of authority enables effectives

    managerial supervisionmanagerial supervision7.7. Efficient running of branchesEfficient running of branches8.8. Interest and initiativeInterest and initiative

    9.9. Satisfaction to subordinatesSatisfaction to subordinates10.10. Expansion and diversification of businessExpansion and diversification of business

    activityactivity

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    DisadvantagesDisadvantages

    1.1. Hesitation on the part of superiorHesitation on the part of superior

    i.i. PerfectionismPerfectionismii.ii. Autocratic attitudeAutocratic attitude

    iii.iii. DirectionsDirectionsiv.iv. ConfidenceConfidencev.v. ControlControlvi.vi. Avoidance of riskAvoidance of riskvii.vii. CompetitionCompetitionviii.viii. Inability of the subordinateInability of the subordinateix.ix. Inability of the superiorInability of the superior

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    2.2. Hesitation on the part of subordinatesHesitation on the part of subordinates

    Love of spoonLove of spoon--feedingfeeding

    Easier to askEasier to ask

    Fear of criticismFear of criticism

    Lack of information or resourcesLack of information or resources Other of selfOther of self--confidenceconfidence

    Other workOther work

    Inadequate incentivesInadequate incentives

    Fear of failureFear of failure

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    Effective DelegationEffective Delegation

    Steps involved in successful delegationSteps involved in successful delegation

    1.1. Establishment of definite goalsEstablishment of definite goals2.2. Developing personal discipline for supervisionDeveloping personal discipline for supervision3.3. Establishment of definite responsibilityEstablishment of definite responsibility4.4. MotivationMotivation5.5. Determining what to delegateDetermining what to delegate6.6. TrainingTraining7.7. ReportReport

    8.8. ControlControl

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    PrePre--requisites for effectiverequisites for effective

    delegation of authoritydelegation of authority

    It understand authority & responsibilityIt understand authority & responsibility

    Decide the portion of authority for delegateDecide the portion of authority for delegate

    Thorough knowledge of the ability &Thorough knowledge of the ability &

    inabilities of subinabilities of sub--ordinates.ordinates.

    Delegation of work in right directionDelegation of work in right direction

    Delegation of routine functionDelegation of routine function

    To understand need, importance of delegationTo understand need, importance of delegation

    It must done in accordance with overall planIt must done in accordance with overall planfor completion offor completion of work.work.

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    Common faults in DelegationCommon faults in Delegation

    1.1. Close supervisionClose supervision

    2.2. Lack of directionLack of direction

    3.3. Lack of accountabilityLack of accountability

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    DecentralizationDecentralization

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    MEANINGMEANING

    It is that type of section in the organization whereIt is that type of section in the organization whereworkers are perform their activities.workers are perform their activities.

    In decentralization, separate staff are allocate toIn decentralization, separate staff are allocate toeach department for performing those activitieseach department for performing those activitieswhich cannot be centralized.which cannot be centralized.

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    AdvantagesAdvantages

    Decentralization

    Greater efficiency

    and outputSavings of time

    1. Maintenance of

    secrecy

    1. Departmental

    loyalty

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    DisadvantagesDisadvantages

    Decentralization

    No proper of

    division of

    work

    Duplication

    of

    work

    No

    standardization

    Heavy

    expenditure

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    RESPONSIBILITYRESPONSIBILITY

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    MEANINGMEANING

    It is obligation to perform the tasks, functions ofIt is obligation to perform the tasks, functions ofthe orgnisation.the orgnisation.

    DEFINATIONDEFINATION

    DavisDavis

    It is an obligation of the individual to performIt is an obligation of the individual to performthe assigned duties of the best of his abilitythe assigned duties of the best of his abilityunder the directions of his executive leader.under the directions of his executive leader.

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    ELEMENTSELEMENTS

    Arises from superior to subordinatesArises from superior to subordinates

    It results from contractual agreementIt results from contractual agreement

    It cannot transferableIt cannot transferable

    It is continuous processIt is continuous process

    It is created by acceptance of authorityIt is created by acceptance of authority

    It is essence of obligationIt is essence of obligation

    It may be general or specificIt may be general or specific

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    THANK YOU