As organizations age, they tend to get larger; thus, the structural changes a firm experiences as it gets larger and the changes it experiences as it progresses through the life cycle are parallel. Communication amongst people at different levels is faster and efficient. An organization may even try to change its position in the life cycle by changing its structure. They want the manager to tackle problems and take decisions. This is a strong motivational force that promotes commitment and loyalty towards the organisation. In this the subordinates should be encouraged to follows the means of self control.
Large organisations have geographically dispersed units with large number of levels in each unit. For example; politically sensitive task, task involving high level security and confidentiality etc. While it may be confidential in nature, the Delegation of Authority is rarely a secret document. Therefore, Good Governance views delegations of authority as a fundamental component of a risk management framework. Further, a supervisor who is not sure of his authority will evade issues or take every question to his chief for decision.
Her support encouraged me to complete this proposal even when it seemed impossible. The same holds true as applied to government control over business, and tax laws. The administration of a union contract is facilitated through a uniform policy with respect to wages, promotions, vacations, dismissals, and similar matters. Two-Way communication: There should be two-way communication between the superior and the subordinate. Development of managers: Once the basic structure of organisation is designed, plans and standards for measuring performance are made and techniques of coordination and motivation are laid, managers decentralise the enterprise by delegating operating authority to lower level managers.
This does not relieve lower level managers from exercising control over their units. This is because some managers do not know how to control, hence, unwilling to delegate. Provide any advice or future re-sourcing that may be required if as provide to be more difficult than anyone and first anticipated. Bargain with trade unions: If trade unions agree to bargain with lower level managers, decision-making power can be decentralised but if trade unions bargain only with top management, the organisation tends to be more centralised. Generally, managers complain that sufficient subordinate managers are not available who can be assigned important duties. Delegations of authority and the limits to those delegations may apply to decisions that sit outside a particular field of expertise or require specific treatment. It is during this phase that the formal structure is designed, and some delegation of authority occurs.
How Authority is Delegated in Organizational Hierarchy Once this limit is crossed, the authority must be delegated to subordinates, who will make decisions within the area of their assigned duties. A company can start out by using one of several organizational structures. As appropriate, establish check-in points so you can monitor their progress. The economic state in Kenya has also been noted to be a contributor towards employments and workers' progress. This helps in diversification in terms of dealing in multiple products and operate in multiple geographical locations. Cost control: Costly decisions where financial outlay is large, for example, the decision to buy a plant or machine, are normally taken by top executives and decisions where financial outlay is not too large can be taken at lower levels.
But too often the lamentable scarcity of good managers is used as an excuse for centralizing authority; executives who complain that they have no one to whom they can delegate authority often try to magnify their own value to the firm or confess to a failure to develop subordinates. That is to say that authority should be commensurate with responsibility. It can take two forms. As the organization becomes older, it may also become more mechanistic in structure. Control system: An effective system of control where regular appraisal of performance against planned performance is done facilitates decentralisation. We will send your complete project materials to your email 30 Mins after payment.
Each item is made somewhat differently to meet a customer's specifications. Here are factors pertaining to the delegant. The vice-president will be unable to perform these duties unless given enough discretion to meet this responsibility. As a result, manager may resist delegation. Managers often try to hold subordinates responsible for duties for which they do not have the necessary authority to perform.
Managers tend to allocate a considerable amount of their workload to their subordinates. The better the control devices, the more will be the delegation of authority. Similarly, a superior believing in the application of modern management techniques like to delegate adequately. Businesses that expand from within show a market tendency to centralized authority while business that result from mergers and considerations are likely to show a definite tendency to retain delegation of authority, especially if the unit acquired is already operating profitably. Size of the Enterprise: The extent of delegation is linked to the size of the enterprise. On the other hand if a concern is the outcome of a merger, amalgamation or combination there may be a great amount of decentralization. Therefore, the authority-level principle derived would be as follows; maintenance of intended delegation requires that decisions within the authority of individuals be made by them and not be referred upwards in the organization structure.