Meaning of Decentralization Delegation of authority and duties is usually referred to as decentralization in which set up the organization is divided into different section and departments in order to help the organization grow scientifically and with a purpose of direction leading to harmony in relations and healthy atmosphere which generally is absent in centralized system of organization. Decentralization of authority, holds Koontz and O’Donnell, “is a fundamental phase of delegation.” To the extent that authority is not delegated is obviously centralization. In the words of Henry Fayol, “every thing that goes to increase the importance of the subordinate’s role is decentralization.” Decentralization is diffusion of authority. It is a process by which specific responsibility is assigned to subordinates. Such a responsibility, when assigned to subordinates, is always followed by sufficient authority which also is given to the executive and other subordinates at lower levels. Decentralization, therefore, refers to assigning Continue reading
Principles of Management
Compare and Contrast Herzberg’s Two Factor Theory with Vroom’s Expectancy Theory of Motivation
Herzberg’s Theory of motivation suggests that there are two factors that affect human behavior and motivation at work; these are called hygiene and motivating factors. Hygiene factors are those that de-motivate staff if they are not in place, whereas motivators are those that are used to motivate staff. The five main attributes that Herzberg suggested were motivators are, recognition, achievement, responsibility, advancement and the nature of work itself. Hygiene factors include, supervision, salary, the work environment, company policies and relationships with colleagues. Vroom’s theory of motivation suggests that there is a link between effort and reward. His theory is based on an employee’s perception of their job, underlined against valence, instrumentality and expectancy. There are two types of theories concerning motivation of employees. There are content theories which assume that people have the same needs and process theories which suggest people are motivated by different things. Herzberg’s two factor theory Continue reading
Decentralization of Authority
By decentralization of authority we mean dispersal of decision-making authority at various levels in the organization. In a centralized set-up, decision-making authority is concentrated at the top-level of the management, whereas in the decentralized set-up, many important decisions are made at the lower level also. The most significant feature of decentralization of authority is that most of the decisions made at the lower level do not need approval of the seniors. This means greater freedom is given in decision-making to lower level managers and supervisors in the organization. Factors Determining the Degree of Decentralization Importance and significance of the decision: One of the important factors determining the degree of decentralization of authority is costliness of the decision. Normally, decisions which are costly in terms of money value involved or in terms of factors like goodwill and image of the establishment, employee morale or motivation tend to be centralized at the Continue reading
The Impact of Bureaucratic Structure in Organizations
A bureaucracy is a form of organisation based on logic, order, and the legitimate use of formal authority. Bureaucracies are meant to be orderly, fair, and highly efficient. Max Weber, a German theorist, was the first person to introduce many of the concepts of bureaucracy. During the 18th and 19th century period many employees worked only for themselves and in a workplace environment that was primarily focused on getting the job done in whichever way possible unconcerned with efficiency. Weber’s idea was to use regulation by rules, policies, supervision, reward systems and other mechanisms to make sure that the behavior and standards of the employees are always met and making the contemporary workplace more organized. The six key principles of bureaucracy that Weber identified were; division of work, hierarchy, promotions, record-keeping, business as a separate legal entity and rules and regulations. Many businesses today have benefited from Weber’s work. Division Continue reading
Difference Between Authority and Power
Authority and Power Authority may be defined as the right to guide and direct the actions of others and to secure from them responses which are appropriate to the attainment of the goals of the organization. According to Barnard, ”Authority is the character of communication(order) in a formal organization by virtue of which it is accepted by a contributor to, or member of the organization as generating the action he contributes, that is, as governing or determining what he does or is not to do so far as the organization is concerned.” Power refers to the ability or capacity to influence the behavior or attitudes of other individuals. A manager’s power may be considered as his ability to cause subordinates to do what the manager wishes them to do. Power is an important means to enforce obedience to the rules, regulations and decisions of the organization. Power may be Continue reading
Theories of Learning
Learning is an important psychological process that-determines human behavior. Learning can be defined as “relatively permanent change in behavior that occurs as a result of experience or reinforced practice”. Important theories of learning are: 1. Classical Conditioning The work of the famous Russian physiologist Ivan Pavlov demonstrated the classical conditioning process. When Pavlov presented a piece of meat to the dog in the experiment, Pavlov noticed a great deal of salivation. He termed the food an unconditioned stimulus and the salivation an unconditioned response. When the dog saw the meat, it salivated. On the other hand, when Pavlov merely rang a bell, the dog did not salivate. Pavlov subsequently introduced the sound of a bell each time the meat was given to the dog. The dog eventually learned to salivate in response to the ringing of the-bell-even when there was no meat. Pavlov had conditioned the dog to respond to Continue reading