DELEGATION OF AUTHORITY,

CENTRALIZATION AND

DECENTRALIZATION
SPAN OF CONTROL:
Span of control is defined as the number of
employees a
manager can effectively manage.
If span of control increases, it reduces the operational cost of an
organization.
But sometimes, wider the span lesser will be the effectiveness
of control.
 Delegation refers to the downward transfer
of authority from the superior to the subordinate.
DELEGATION OF AUTHORITY:
Delegation is the process of granting authority or right to decision
making in certain defined areas and charging the subordinate
with responsibility for carrying through assigned task
“Delegation is the entrustment of responsibility and
authority and to another creation of accountability for the
performances
- Louis Allen
Authority refers to the right of an
individual to command his
subordinates and to take actions.
 Responsibility is the obligation of
a subordinate to
properly perform the assigned duty.
 Accountability means for the outcome
answerability assigned task. of the
Overview of elements of
delegation
IMPORATANCE OF
DELEGATION
1. Effective
Management

The managers are able to function more

efficiently and effectively as they get more
time to concentrate on important matters.
 2. Employee
Development

The subordinates get ample opportunities to

utilise their talents and skills which enable
them to perform complex tasks and assume
more responsibilities.
 3. Motivation of
Employees

Delegation motivates the subordinates

to improve their performance as well
as their capabilities.
4. Facilitates
growth

Delegation enables workforce to

assume more responsibilities and
take up leading positions in new
ventures and newly starting
branches. Thus it helps growth and
expansion of an organisation.
5. Managerial
hierarchy

The superior-subordinate
relationship established through
organizing and delegation is the
basis of hierarchy of management.
 6. Better
coordination

Clarity in reporting helps to develop

and maintain effective coordination
amongst departments, job positions
and functions of management.
Process of Delegation:

1. Sizing up the work:

Superior has to assess his/her workload in terms of activities and
task to be assigned to him/her and result expected of him.
He/she should analyzewhich part of work has
to be
delegated.
Process of Delegation:

2. Assignment of duties to subordinates:

Subordinates must explained about nature of work,
the
limitation of authority, target expected.
Process of Delegation:

3. Granting of authority to perform duty:

In this process official authority be given to
will the
subordinate.
Work force below the delegate will be instructed to follow the
commands of delegate.
Process of Delegation:

4. Creation of obligation:
Delegate will be taking in charge.
He/she will be responsible for all the activities performed.
Advantages of Delegation:
Reduction of executive burden.
Facility of expansion / multiplicity of skill.
Efficient running of branch organizations.
Identification of talents.

Disadvantages of delegation:
Dependence on managers.
Failure in completion of duty, due to lack of skill.
Conflict among workers.
CENTRALIZATION:
Centralization is the reservation of authority at a central point
within the organization.
Role of subordinates becomes insignificant in this case.
Advantages of Centralization:
Facilitates greater uniformity.
Lowers operating cost.
Enhances coordination.

Disadvantages of Centralization:
Individual initiative destroyed.
Overburden with routine functions.
Communication gap with lower units.
Keeps the customer away.
DECENTRALIZATION:
Dispersal of decision making authority down to
the level
where work is to be performed.
Characteristics of decentralization:
Reflects the management’s attitude and philosophy.
Managerial skills need to be developed among employees.
Number of decisions must be made by lower level of management.
Advantages of decentralization:
Facilitates diversification.
Higher motivation for employees.
Ensures effective control.
Minimizes risk.
Development of management.

Disadvantages of decentralization:
May increase operational cost.
Conflict among same level of employees.
Lack of communication.
DECENTRALIZATION vs DELEGATION:

1. Definition:
Delegation is entrustment of authority from one to another.
Decentralization is organization wide delegation between top
managements and departments.
DECENTRALIZATION vs DELEGATION:

2. Essentiality:
Delegation is mandatory for an organization.
Decentralization is optional.
DECENTRALIZATION vs DELEGATION:

3. Range of control:
In delegation of authority, top authority will expose maximum control
over delegates in delegation.
In decentralization, top authority may exercise
minimum
control.