AUTHORITY‚ DELEGATION AND DECENTRALISATION What is an authority? Authority is the cement of organisation structure in which various units of organisation are integrated. Without authority a manager cesses to be a manager. It is the authority that gives managers power to act. Authority is glue that holds organisation together. It is impossible to have an organisation unless some persons have the authority to command action of others. The word Authority is derived from the Latin word “auctoritas”
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Centralisation and Decentralisation Centralisation The main decisions are made by senior management‚ where little authority is passed down the organisation. advantages • decisions are made by experienced people with an overview of the company. • ensures policies are consistent throughout the company. • ensures quick decisions can be made without consultation. • procedures such as ordering and purchasing can be standardised throughout the company‚ leading
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Management 4e © 2006 Pearson Education Australia LO6 Students will evaluate two types of organisational structures and recommend a structure for a given situation Key elements a) Hierarchy and departmentalisation economic growth b) Centralisation versus decentralisation c) Mechanistic versus organic d) Span of control Robbins‚ Bergman‚ Stagg‚ Coulter: Management 4e © 2006 Pearson Education Australia 2 LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter. Defining
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Program & Semester: MBA (1st semester) Subject name: Management Process and Organizational Behavior Subject Code: MB0038 Unit no. : 2 (Introduction to Management and Management Process) Important Question and Answer MB0038-U2: Question – Define management. What are the principles of management defined by Henri Fayol? MB0043-U2: Answer- Management is the act of getting people together to achieve desired goals and objectives using available resources efficiently and effectively. Since organizations
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‘DASHMAN COMPANY’ Submitted by: Name: SIDDHARTH S MEHTA Roll No: 17BEB42 Section: B SITUATION ANALYSIS Mr. Manson being the president of the Dashman Co. is in the position to change the structure of the company from decentralisation to centralisation because it’s the time of World War II & the US armed forces demanded the arms & equipment heavily. The Dashman Co. is making many types of arms and equipment & has 20 plants located in the central part of the country which are run by
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overall narrow span and more hierarchical levels. A flat structure has a wide span‚ is horizontally dispersed‚ and has fewer hierarchical levels. Centralisation and decentralisation pertain to the hierarchical level at which decisions are made. Centralisation means that decision authority is located near the top of the organisation. With decentralisation‚ decision authority is pushed downward to lower organisation levels. 2. Describe functional and divisional approaches to structure. Functional
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UNIT 3 Structure ORGANISATION STRUCTURE AND EFFECTIVENESS 3.1 3.2 3.3 3.4 3.0 Objectives Introduction Concept of Organisation Structure Components of Organisation Structure Types of Organisation Structure 3.4.1 Functional Structure 3.4.2 3.4.3 Divisional Structure Adaptive Structure 3.5 3.6 Dimensions of Organisation Structure Organisational Design 3.6.1 Classical form of Organisation 3.6.2 3.6.3 Alternate Design Organisational and Mechanistic Design 3.7 3.8 3.9 10.10 Organisational
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ZONAL DIRECTOR United HR medical director Head eng marketing & sales Finance head Nursing matron Team Hr Doctors Eng team Marketing team Finance team Nursing team Centralisation: Head of department control all departments and they report to the Zonal director. Each individual in the organisation has limited autonomy and financially it is highly centralised and functionally it is moderately decentralised and it has high
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the development of business. Although federalism still confronts disadvantages for business like decentralisation and complexity of financial policies to globalisation‚ corrections and solutions are continuously promoted to prove federalism’s positive aspects for the business development. In a federal system‚ according to Palencia (1974‚ pp. 16)‚ “Federalism brings about political decentralisation through the distribution of responsibilities between central and local authorities.” It is also written
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Understanding Organisations: Understanding the internal and external organisational environments This section covers: Organisational theory Organisation structure Centralisation and decentralization Levels of the organization Mintzberg’s nine design parameters Formal organisational relationships Definition of an organisation: Systems of activities and behaviours to enable humans and their machines to accomplish goals and objectives a joint function of human characteristics and the nature
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