OCM 2 Marks Each

Delegation of authority can be for various purposes like marketing managers are given power to incur necessary expenditure in their work area, the appointment of employees, to take disciplinarian actions against the employees etc.

Responsibility is the duty assigned by the upper level administrator to the person responsible.

• The responsibility is the giving of power to accomplish a particular task.
• Due to this, the person in authority and the person or people who follow is predetermined.
• The followers have to follow all the orders of the authority.
• Thus the flow is from lower level to upper level management.

Following elements are included in the delegation of power.

• Entrustment of Responsibility
• Delegation of Authority
• Creation of Accountability

Management is an art to take work from others.

• For this the right i.e. authority to give orders and to ensure its implementation must be there with the managers. It is very difficult to take work from others without authority, hence, authority is considered key to management.
• But the key of organization is delegation of authority, hence, authority is considered key to management.
• But the key of organisation is delegation of authority.
• The officers of the organisation delegate some of the functions to subordinates, keeping in mind the volume and nature of work, and also delegate authority to perform it.
• The success of the functions of all divisions of organization depends on the delegation of work, hence, it is called Key to Organization.

Following are the advantages of decentralization of power :

• Quick decision can be taken
• Decrease in work load of top level management
• Increase in motivation
• Effective control.

Following are the limitation of centralization of power.

• Increase in work load
• Bureaucration behavior
• Non-co-operative attitude
• Possibility of whimsical decision.

Informal organization is based on human relations. One similar kind of feelings, interests values, hobbies, habit and beliefs play a role and the informed structure is formed.

Such kind of structure is more favorable where there is a small size of the organization and the work area is also limited and the problems of control and the informed structure is formed.

General manager is the main administrative head in linear organization. He get power from organizational committee.

Following are the types of organization :

• Liner organization
• Functional organization
• Formal organization
• informal organization
• Matrix organization.

At the time of framing organization, a group is prepared for similar type of work. This group can classify the work in sales department, purchase department and account department and establish the quality of work division and specialization.

The changes or variations can be made when there are major changes in the business environment, technological advancement or new discoveries.

Organization is made on the basis of planning and objectives determined by planning. The structure of any unit is based in its future implementation of plan. Thus, before organizing it is necessary to have proper planning.

Organization is a linear structure that co-ordinates with goals of business, departmental goals and goals of employees.

Organizing is a term that is basically involved with a group of the people. Here two or more people work together, the structure for the work accomplishment in an effective manner, so it is called as Arrangement.

If the business unit has an able and effective organizing, with the optimum use of resources, time, energy and money can be saved and distortion in the activities of business can be avoided.

As per Louise Allen, “Organizing is the process of identifying and classifying the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishment objectives.”

Main limitation of Matrix organization can be noted as under.

• For each project different teams are kept like project manager and expert so it becomes.
• Team of one project can’t do the work of team of second project so flexibility is less.
• Expert of project gets the order from top level officer and from project manager, so the principle of unity of command is not maintained.

Organizing and made on the basis of planning and objectives determined by planning.

• It means that organization is a body of business which fulfills the objectives of the unit.
• Planning is a soul of organization because to fulfill the objects of planning.
• The implementation is done through body of organization.
• Hence before organizing. It is necessary to have proper planning.
• So planning is a soul of organization. Hence before organizing.
• It is necessary to have proper planning. So planning is a soul of organization.

When the size of he organization becomes large, the upper level administrator assigns some work in a co-ordinate manner, they develop proper administrative skills and they learn to administer control.

Due to decentralization of power, employees become efficient leader, they develop skills to work in a co-ordinate manner, they develop proper administrative skills and they learn to administer control.