AN INSIGHT

Line/staff authority, Empowerment and Decentralization

CONCEIVED BY:
Ronak B. Bhatt
Niraj Chandra
Karun Kapoor
 overview

Issues concerning the governance of an

organization
- Niraj Chandra

Concept of organization structure

- Karun Kapoor

Delegation of Authority
-Ronak B. Bhatt
Issues concerning the governance of an
organization

Power
Authority
Empowerment
Power
“Power is the ability of individuals or groups
to induce or influence the belief or action of
other people or group.”
Types of POWER:
Legitimate Power: Position in Society/Organization

Power of Knowledge: Expertness of Person

Referent Power: Belief of Someone

Reward Power: Grant/Hold high grade

Coercive Power: Power of Punishment

Authority
“Authority in an organization is the right in a
position to exercise discretion in making
decisions affecting others.”
Empowerment
“Empowerment means that employees
,manager, or all levels in the organization
have the power to make decision without
asking their superior for permission.
Illustration as follows:
Power = responsibility (P=R)
If P>R, then results in autocratic behaviour
of superior.
if P<R, it results in frustration of
subordinate.
Dispersion of Authority in
Organization of power:
Decentralization
Systematic delegation of authority at the lower
level with operation authority for decision. In
complete decentralization - no organizational
structure
Centralization of power:
Concentration of authority to higher level of
management is centralization. There is no
organizational structure( complete
centralization)
Fayol said” Increase in subordinates role is
decentralization, and everything which goes to
Decentralization
Advantages:
Relieve top management of some burden of making
decision.
Make comparison of performance of different organizations
unit possible.
Facilitate product diversification.
Aid in adaptation to fast-changing environment.
Limitations:
Makes uniform policy difficult.
Increase complexity of coordination of organization .
May be limited by inadequate planning and control system.
Concept of Organization
Structure

Line organization

Line and Staff

organization
Line
Organization
In a Line Organization all managers have
direct authority over their respective
subordinates, through Scalar chain of
command.
Managing Director A direct relationship between
superior and subordinate
Production Manager
works as:
Scalar chain of

As a chain of command

command

Production Superintendent As a channel of

communication
Foreman As a carrier of responsibility
Line and staff
Organization
The line and staff organization refers to an
organization in which two types of authority
relationships co-exists. They are Direct or
Line authority and Advisory Authority.
Staff managers advice ,support and serve
line managers.
Line & Staff Organization
Structure Chief
Executive
Asst. to Chief
Executive

Personnel R&D Mfg. Manager Mktg. Manager

Manager Manager

Qty. Ctrl. Plant Plant

Manager Manager Manager

Industrial. Product
Industrial Relations manager
Manager
Consumer Product
Training manager manager
Marketing Research
Employ service manager
manager
Line & Staff Conflict
View point of Line Managers:

 Lack of Responsibility
 Encroachment of Line Authority
 Dilution of Authority
 Theoretical Authority
Line & Staff Conflict
View point of Staff Managers:

 Lack of Proper use of staff

 Resistance to New Ideas
 Lack of Proper Authority
Functional Authority
“Functional Authority is the power which an
individual or department may have
delegated over specific processes,
practices, policies or other matters relating
to activities undertaken by personnel in
departments other than its own.”
Functional Authority

Advantages: Disadvantages:
 Specialization  Conflict among
Superiors
Mass Production
Lack of Co-ordination
Efficiency
Lack of Speed
Flexibility
Expensive
Summary of
Line/Staff/Functional
Organization
Sr. Feature Line Line and Staff Functional
No. Organization Organization Organization

1. Simplicity High Not So High Low

2. Suitability For small For medium and For large
enterprises large enterprises enterprises

3. Specialization Low Moderate High

4. Work load of High Moderate Uneven

managers

5. Unity of Strictly Observed to Not observed in

Command observed great extent general
6. Economy High Moderate Low
Delegation of Authority
Process of Delegation:
Determining the results expected from
position
Assigning task to the position
Delegating authority for accomplishing
these tasks
Holding the person in that position
responsible for the accomplishment of the
task.
Splintered Authority
Splintered authority exists wherever a
problem cannot be solved or a decision
made without pooling the authority of two
or more managers.

Splintered Authority V/S Superior Authority

Recovery of Delegated Authority

Art of Delegation
Personal Attitudes towards Delegation
Receptiveness
Willing to let go
Willingness to let others make mistakes
Willingness to trust subordinates
Willingness to establish and use Broad
Controls
 Guidelines for
overcoming Weak
Delegation
1.Define Assignments and Delegate
Authority in light of Results Expected.
2.Select the person in light of the job to be
done
3.Maintain open Lines of Communication
4.Establish Proper Controls
5.Reward Effective Delegation and
Successful Assumption of Authority
Synopsis
We have discussed following topics in the
presentation above:
Power and its bases
Authority
Empowerment
Line & Staff concept
Centralization/Decentralization/Recentraliza
tion
The process of Delegation of Authority
Thank