A PRESENTATION ON :

“CENTRALISATION AND ...DECENTRALISATION” PRESENTED BY-: ARUN ARBIND BAXLA

BALARAM BEHERA

SATYABRATA SAHOO

CENTRALISATION

MEANING :

Centralisation is the systematic and consistent reservation of authority at central point in the organisation

WHAT IS CENTRALISATION ?

CONTROL AND DECISION-MAKING RESIDE AT THE TOP LEVEL OF MANAGEMENT

FEATURE

RESERVATION OF DECISION POWER AT TOP LEVEL

RESERVTION OF OPERATING AUTHORITY WITH THE

MIDDLE LEVEL MANAGEMENT

RESERVATION OF OPERATION AT THE LOWER LEVEL

AT THE DIRECTION OF THE TOP LEVEL

ADVANTAGES

LESS SKILLED SUBORDINATES

(SAVING OF WAGES AND SALARY)

HANDLING EMERGENCIES

INTEGRATION OF TOTAL OPERATION

UNIFORMITY OF ACTION

DISADVANTAGES

INCREASE THEBURDEN OF TOP MANAGEMENT

HAMPER IN THE GROWTH

SLOW IN OPERATION

REDUCE IN SPECIALISATION

DECENTRALISATION

MEANING :

DECENTRALISATION REFERS TO EVERYTHING THAT GOES TO INCREASE THE IMPORTANCE OF SUBORDINATES.IN THE OTHER WORDS IT MEANS THE DISPERSION OF AUTHORITY OVER THE ORGANISATION.

DEFINATIONN

“ DECENTRALISATION REFERS TO THE SYSTEMATIC EFFECT TO DELEGATE TO THE LOWEST LEVELS ALL AUTHORITY EXCEPT THAT WHICH CAN ONLY BE EXERCISED AT CENTRAL POINT “.

LOUIS A. ALLEN

ADVANTAGES

RELIEF TO TOP EXECUTIVES

MOTIVATION OF SUBORDINATES

QUICK DECISION

GROWTH AND DIVERSIFICATION

EXECUTIVE DEVELOPMENT

EFFECTIVE COMMUNICATION

EFFICIENT SUPERVISION AND CONTROL

DISADVANTAGES

EXPENSIVE

DIFFICULTY IN CORDINATION

LACK OF UNIFORMITY

NARROW PRODUCT LINES

EXTERNAL CONSTRAINTS

FACTOR DETERMING DECENTRALISATION

SIZE AND COMPLEXITY OF THE ORGANISATION

COSTLINESS OF DECISION

DISPERSAL OF OPERATIONS

DEGREE OF DIVERSIFICATION

HISTORY OF THE ENTERPRISE

OUTLOOK OF THE TOP MANAGEMENT

AVAILABLITY OF COMPETENT PERSONEL

NATURE OF FUNCTION PLANNING AND CONTROL PRECEDURE COMPLEXITIES OF THE SITUATION

EFFECTIVE DECENTRALISATION

APPROPRIATE CENTRALISATION

DEVELOPMENT OF MANAGERS

OPEN COMMUNICATION

ADEQUATE CONTROLS

CO-ORDINATION

WHAT IS DELEGATION ?

IN A SIMPLE WORD DELEGATION MEANS TO GRANT OR TO CONFER.IT MEANS ASSIGNING WORK TO OTHERS AND GIVING THEM AUTHORITY TO DO.

DELEGATION : THREE LEGS OF A STOOL

ASSIGNING THE DUTIES

GRANTING AUTHORITY TO PERFORM THE DUTY

CREATION OF OBLIGATION,ACCOUNTABILITY

UNITY OF COMMAND

DIFFERENCE

DELEGATION PROCESS OF DEVOLUTION OF

AUTHORITY

IT TAKE PLACE FROM ONE INDIVIDUAL TO ANOTHER

CONTROL RESTS ENTIRELY WITH SUPERIOR

DECENTRALISATION IS THE END RESULT WHICH IS

ACHIEVED WHEN DELEGATION IS SYSTEMATICALLY REPEATED UP TO THE LOWEST LEVEL

IT IS COMPLETED ONLY WHEN THE THE FULLEST POSSIBLE DELEGATION IS MADE AT ALL LEVEL OF MANAGEMENT

CONTROL REMAINS ON THE TOP LEVEL AND HE GIVE AUTHORITY TO DEPT. MANAGERS

MUST FOR MANAGEMENT AS SUB-ORDINATES MUST GIVEN AUTHORITY TO WORK

TECHNIQUE,USED TO GET THINGS DONE THROUGH OTHERS

CREATES SUPERIOR-SUBORDINATE RELATIONSHIP

CAN TAKE PLACE WITH OUT DECENTRALISATION

OPTIONAL,TOP MANAGEMENT MAY OR MAY NOT DISPERSE THE AUTHORITY.

BOTH A PHILOSOPHY OF MANAGEMENT AND A TECHNIQUE

IT IS DIFFUSION OF DECISION MAKING AUTHORITY THROUGHOUT THE ORGANISATION

CAN NOT BE WITHOUT DELEGATION