ch 5 bst

Functional structure advantages

1. occupational specialisation

2. promotes control and coordination within department

3. increases managerial and optional efficiency

4. it leads to minimum duplication of efforts

5. eeasy and efficient training

6. due attention to different training

Functional structure disadvantages

1. places less importance to overall objectives of organisation

2. problems of coordination

3. inflexibility

4. conflict of interest

5. difficult to fix accountability

Divisional structure advantages

1. product specialisation

2. fast decision making

3. accountability

4. flexibility

5. expansion and growth

Divisional structure disadvantages

1. more resources required

2. ignoring organisation interlot

3. conflict

4. increase in cost

delegation of authority

Delegation of authority refers to downward transfer of authority from superior to subordinate. By delegation, manager can focus on high priority area.

elements of delegation

1. Authority

2. Responsibility

3. Accountability

Authority

It refers to the right of an individual to command his subordinates and to take action within the scope of his position.

Responsibility

Responsibility refers to the obligation of a subordinate of a subordinate to properly perform the assigned duty. It arises out of superior, subordinate relationship because the subordinate is bound to perform the duty assigned to him by the superior.

Accountability

To make sure that the employees or subordinates perform their responsibilities in their expected manner, the accountability is created

Importance of delegation

1. Effective management

2. Employees development

3. Motivation of employees

4. Facilitates organisational growth

5. Basis of management hierarchy

6. Better coordination

7. Reduces the workload of management

Decentralisation

can be defined as even and systematic distribution of authority at every level of management. Under decentralisation every employee working at different levels gets some shares in the authority

Importance of decentralisation

1. Develop initiative among subordinates

2. Develop managerial talent for future

3. Quick decision making

4. Relief to top level management

5. Facilitates growth

6. Better control

Basis of difference between delegation and decentralisation

1. Nature

2. Freedom of action

3. Status

4. Scope

5. Purpose