LINE AND STAFF, DECENTRALISATION

1. LINE AND STAFF,DECENTRALISATION

2. LINE AND STAFF… • DEALS WITH THE AUTHORITY RELATIONSHIPS • i.e THE PROBLEMS OF LINE AND STAFF • WHAT IS POWER, RESPONSIBILITY AND AUTHORITY? • WHAT ARE AUTHORITY RELATIONSHIPS?

3. AUTHORITY AND POWER • POWER IS THE ABILITY OF INDIVIDUALS OR GROUPS TO INDUCE OR INFLUENCE THE BELIEFS OR ACTIONS OF OTHER PERSONS OR GROUPS • POWER: • LEGITIMATE • EXPERT • REFERENT • REWARD • COERCIVE

4. AUTHORITY AND POWER • AUTHORITY IN AN ORGANISATION IS THE POWER IN A POSITION ( AND THROUGH IT THE PERSON OCCUPYING THE POSITION ) TO EXERCISE DISCRETION IN MAKING DECISIONS AFFECTING OTHERS. • IT IS POWER, BUT IN AN ORGANISATIONAL SETTING

5. LINE AND STAFF • LINE FUNCTIONS ARE THOSE WHICH HAVE DIRECT RESPONSIBILITY FOR ACCOMPLISHING THE OBJECTIVES OF THE ENTERPRISE. • STAFF REFERS TO THOSE ELEMENTS OF THE ORGANISATION THAT HELP THE LINE TO WORK MOST EFFECTIVELY IN ACCOMPLISHING THE PRIMARY OBJECTIVES OF AN ENTERPRISE.

6. LINE AND STAFF.. • STAFF FUNCTIONS : PURCHASE, ACCOUNTING, PERSONNEL, & QUALITY CONTROL. • LINE: PRODUCTION, MARKETING & SALES, FINANCE. • WHY CONFUSION?

7. LINE AND STAFF… • THERE IS A LINE OF AUTHORITY FLOW FROM SUPERIOR TO SUBORDINATE KNOWN AS THE ‘ ‘

8. SCALAR PRINCIPLE • THE CLEARER THE LINE OF AUTHORITY FROM THE ULTIMATE AUTHORITY FOR MANAGEMENT IN AN ENTERPRISE TO EVERY SUBORDINATE POSITION , THE MORE EFFECTIVE WILL BE REPONSIBLE DECISION MAKING AND ORGANISED COMMUNICATION. **

9. STAFF… • STAFF RELATIONSHIP IS ADVISORY. • THE FUNCTION OF PEOPLE IN STAFF POSITION IS TO INVESTIGATE , RESEARCH AND GIVE ADVICE TO LINE MANAGERS TO WHOM THEY REPORT.

10. LINE AND STAFF… • LINE AND STAFF ARE DISTINGUISHED BY THEIR AUTHORITY RELATIONSHIPS AND NOT WHAT THEY DO • E.g. THE PR DEPT IS PURELY STAFF.. BUT WITHIN THE DEPT THERE WILL BE LINE AND STAFF RELATIONSHIPS

11. FUNCTIONAL AUTHORITY • IT IS THE POWER WHICH AN INDIVIDUAL OR DEPARTMENT MAY HAVE DELEGATED TO IT OVER SPECIFIED PROCESSES , PRACTICES, POLICIES , OR OTHER MATTERS RELATING TO ACTIVITIES UNDERTAKEN BY PERSONNEL IN DEPARTMENTS OTHER THAN ITS OWN.

12. BENEFITS OF STAFF: • THEIR ADVICE IS CRITICAL AS THEY HAVE SPECIALISED KNOWLEDGE IN THEIR AREAS • THE ADVICE COULD BE CRITICAL IN SOLVING A PROBLEM

13. LIMITATIONS OF STAFF: • DANGER OF UNDERMINING LINE AUTHORITY • LACK OF RESPONSIBILITY • THINKING IN A VACUUM • MANAGERIAL PROBLEMS

14. MAKING STAFF WORK EFFECTIVELY: • UNDERSTANDING AUTHORITY RELATIONSHIPS • MAKE LINE LISTEN TO STAFF • KEEP STAFF INFORMED • COMPLETED STAFF WORK - i.e ADVICE NOT CONTROL • MANAGERS HAVE RESPONSIBILITY AND ARE ACCOUNTABLE

15. DECENTRALISATION

16. DECENTRALISATION.. • IT IS THE FUNDAMENTAL ASPECT OF DELEGATION • IT IS MORE OF HOW MUCH OF AUTHORITY IS TO BE DELEGATED RATHER THAN WHAT KIND OF AUTHORITY IS TO BE DELEGATED.

17. DELEGATION OF AUTHORITY • THE PRIMARY PURPOSE OF DELEGATION IS TO MAKE ORGANISATION POSSIBLE • ENABLES DECISION MAKING • EFFECTIVE SUPERVISION

18. HOW IS AUTHORITY DELEGATED? 1. WHEN DECISION MAKING POWER IS VESTED IN A SUBORDINATE BY A SUPERIOR 2. SUPERIORS CANNOT DELEGATE AUTHORITY WHICH THEY DO NOT HAVE.

19. PROCESS OF DELEGATION.. • THE DETERMINATION OF RESULTS EXPECTED FROM PERSONS IN A POSITION • THE ASSIGNMENT OF TASKS TO PERSONS IN A POSITION • THE DELEGATION OF AUTHORITY FOR ACCOMPLISHING THESE TASKS • THE HOLDING OF PEOPLE RESPONSIBLE FOR THE ACCOMPLISHMENT OF THESE TASKS.

20. PRINCIPLES OF DELEGATION: • PRINCIPLE OF DELEGATION BY RESULTS EXPECTED • PRINCIPLE OF FUNCTIONAL DEFINITION • SCALAR PRINCIPLE • AUTHORITY PRINCIPLE • PRINCIPLE OF UNITY OF COMMAND • PRINCIPLE OF ABSOLUTENESS OF RESPONSIBILITY • PRINCIPLE OF PARITY OF AUTHORITY AND RESPONSIBILITY • GOTO

21. PRINCIPLE OF DELEGATION BY RESULTS EXPECTED • AUTHORITY DELEGATED TO AN INDIVIDUAL MANAGER SHOULD BE ADEQUATE TO ENSURE THE ABILITY TO ACCOMPLISH RESULTS EXPECTED. BACK

22. PRINCIPLE OF FUNCTIONAL DEFINITION • THE MORE A POSITION OR A DEPARTMENT HAS CLEAR DEFINITIONS OF RESULTS EXPECTED , ACTIVITIES TO BE UNDERTAKEN , ORGANISATIONAL AUTHORITY DELEGATED, AND AUTHORITY AND INFORMATIONAL RELATIONSHIPS WITH OTHER POSITIONS UNDERSTOOD, THE MORE ADEQUATELY THE RESPONSIBLE INDIVIDUALS CAN CONTRIBUTE TOWARDS ACCOMPLISHING ENTERPRISE OBJECTIVES. BACK

23. AUTHORITY LEVEL PRINCIPLE • MAINTAINANCE OF INTENDED DELEGATION REQUIRES THAT DECISIONS WITHIN THE AUTHORITY COMPETENCE OF INDIVIDUALS BE MADE BY THEM AND NOT BE REFERRED UPWARD IN THE ORGANISATION STRUCTURE.

24. **

25. PRINCIPLE OF UNITY OF COMMAND • THE MORE COMPLETELY AN INDIVIDUAL HAS A REPORTING RELATIONSHIP TO A SINGLE SUPERIOR , THE LESS THE PROBLEM OF CONFLICT IN INSTRUCTIONS AND THE GREATER THE FEELING OF PERSONAL RESPONSIBILITY FOR RESULTS. • BACK

26. PRINCIPLE OF ABSOLUTENESS OF RESPONSIBILITY • THE RESPONSIBILITY OF SUBORDINATES TO THEIR SUPERIORS FOR PERFORMANCE IS ABSOLUTE , ONCE THEY HAVE ACCEPTED AN ASSIGNMENT AND THE POWER TO CARRY IT OUT, AND THE SUPERIORS CANNOT ESCAPE RESPONSIBILITY FOR THE ORGANISATION ACTIVITIES OF THEIR SUBORDINATES. • BACK

27. PRINCIPLE OF PARITY OF RESPONSIBILITY AND AUTHORITY • THE RESPONSIBILITY FOR ACTIONS CANNOT BE GREATER THAN THAT IMPLIED BY AUTHORITY DELEGATED NOR SHOULD IT BE LESS. • BACK

28. THE ART OF DELEGATION • RECEPTIVENESS • WILLINGNESS TO LET GO • WILLINGNESS TO LET OTHERS MAKE MISTAKES • WILLINGNESS TO TRUST SUBORDINATES • WILLINGNESS TO ESTABLISH AND USE BROAD CONTROLS

29. FACTORS DETERMINING DEGREE OF DECENTRALISATION: • COSTLINESS OF THE DECISION • UNIFORMITY OF POLICY • HISTORY OF THE ENTERPRISE • MANAGEMENT PHILOSOPHY • ENVIRONMENTAL INFLUENCES • AVAILABILITY OF MANAGERS

30. RECENTRALISATION • WHAT IS IT? • HOW MUCH TO DECENTRALISE? 1. Verifiable objectives 2. Technique of organisation i.e. state each manager’s duites and responsibilities 3. Character of top leadership 4. Stretch span of management to the maximum 5.Promote managers only when they have good subordinates to take their place

31. EFFECTIVE ORGANISATION.

32. SOME MISTAKES IN ORGANISING.. • FAILURE TO PLAN PROPERLY • FAILURE TO DELEGATE AUTHORITY • FAILURE TO BALANCE DELEGATION • GRANTING AUTHORITY WITHOUT RESPONSIBILITY • HOLDING PEOPLE RESPONSIBLE WHO DO NOT HAVE AUTHORITY

33. THE END.