Principle of centralization of authority and responsibility. Authority and Responsibility in Management 2022-12-29
Principle of centralization of authority and responsibility Rating:
8,2/10
1297
reviews
The principle of centralization of authority and responsibility refers to the concentration of decision-making power in a single individual or group within an organization. This principle is often contrasted with decentralization, which refers to the distribution of decision-making power among multiple individuals or groups.
The centralization of authority and responsibility can have both advantages and disadvantages for an organization. One advantage is that it allows for efficient decision-making, as all decisions can be made by a single individual or group who has a comprehensive understanding of the organization's goals and operations. This can lead to quicker response times and a more cohesive overall strategy.
However, the centralization of authority and responsibility can also have negative consequences. It can lead to a lack of creativity and innovation, as the decision-making process is restricted to a small group of individuals. It can also lead to a lack of accountability, as decisions are made by a single individual or group and it can be difficult to determine who is responsible for any negative consequences.
In order to balance the benefits and drawbacks of centralization, it is important for organizations to carefully consider the appropriate level of centralization for their specific needs. In some cases, it may be beneficial to decentralize decision-making power to allow for more creativity and accountability, while in other cases, centralization may be necessary for efficient decision-making.
Ultimately, the principle of centralization of authority and responsibility is a crucial aspect of organizational structure and should be carefully considered in order to ensure the success of the organization.
Centralization and Decentralization
Summing upā¦ thus, centralization means decision-making authority targeting the top-level manager. Centralized decision-making has many advantages, such as the efficiency increase due to the improved coordination in functions because of the seamless decision-making from a single source of authority. On the other hand, decentralization gives lower-level managers the ability to make localized decisions without having to wait for senior intervention. Their roles increasingly involve simply carrying out orders from superiors. Fayol believed that total centralization and decentralization are both impossible and that organizations should strive to strike a balance between the two.
While exercising authority, the manager must keep the following limitations in his mind. Centralized authority exists in an organization when all or most decisions and orders come from a centralized source, usually the members from the top levels of the organizational structure. Authority may be subjected to the bye-laws, standing orders, rules and regulation of the company as per articles and memorandum of the company 3. In general, in business organizations, the authority is a result of the contractual agreement, under which the subordinate have agreed to perform certain services in return of monitory benefit. Similarly, since the authority is given, the employee should be accountable for his actions over the period of completion of the task. Centralized Decision-Making Disadvantages A centralized organization may suffer from shortcomings because of this structure. In addition, due to tremendous pressure to formulate conclusions for the organization, the executives lack control over the implementation process, since they have a lot on their desks.
Its own members set up these organizations. An organization is said to be centralized if most of the power of decision-making is vested in the top level and the lower ones have to refer most of their problems to the head of the organization. The power to make decisions is less concentrated and more distributed and localized. Delegation of authority establishes relationships. Work of specialised nature can be handled by the specialists of those fields. They are: i Formal authority theory, and ii Acceptance theory. They are: a The subjective aspect that is the personal aspect of accepting a communication or order as authoritative; and b The objective aspect that is the character in the communication by virtue of which it is accepted.
What are examples of authority and responsibility in management?
The lower levels of the organizational hierarchy always look upward for decisions, directions, advice, clarifications and interpretations. . It is exacted upwards whereas authority flows downwards. It also ensures that urgent decisions are made promptly, thus, minimizing undesirable outcomes from delayed decision-making. Therefore responsibility cannot be delegated. Authority ā Responsibility Relationship: Authority and responsibility of a manager should be co-equal i.
Responsibility: Responsibility is the most misunderstood term in the literature of management. Centralized authority also provides a high degree of accountability because responsibility is clearly set forth in the organization's chain of command. This system of authority concentrates decision making and control and power in the hands of a few experts. Many academic theorists of the formal authority view the legal aspects of private property as the source of authority. A manager is responsible for the performance of the duties even though he may delegate to a subordinate authority to accomplish a service and the subordinate also in his turn may delegate a part of his authority received by him. This is the perfect example of a scenario where centralization does not carry too many risks. Political centralization of government enables a more coordinated functioning of its various departments and aspects.
Centralization of Authority: What It Is? +Pros/Cons [Explained]
He was right, especially when it came to the skill it took to be in a position of authority. Top-level management makes autonomous decisions. The personnel at the lower levels are in no way involved in the decision-making, which can lead to reduced job satisfaction. Position Authority: It is the authority a person enjoys by virtue of his superior position in the organisation. Used appropriately, authority is a valuable tool for any organization. Failure to observe these elements may call for a penalty, punishment or disciplinary action against the erring subordinate. In view of organizational set up, the superior-subordinate relationship gives rise to this responsibility as the superior is vested with the authority to get the specified work done by his subordinates.
Centralisation of Specialised Services: Centralisation is suitable for proper developĀment of specialised services. On the other hand, when the president hires some lower for seeking legal advice and advocating a particular case in the court of law, his obligation comes to an end when the assignment is completed. Finally, given the constraining nature of the organization from the standpoint of subordinate employees, job satisfaction and commitment to the organization may be low. The executives and decision-makers are based in the head office. The centralized power definition refers to a government where power is concentrated in a single authority.
Authority and Responsibility: Principle of Management [Explained]
So this practice must be undertaken only when the firm is sure that it will add overall value to the firm. Top managers appoint senior and junior level managers and assign tasks and responsibility to them to perform and deleĀgate them appropriate authority to operate and control the resources placed under their control. Centralization of authority in an organization can be first found in China during the Qin dynasty. Employees cannot contribute to the decision-making process and are merely implementers of decisions made at higher levels. In addition, it has a clear set of rules before it that it can follow. In the centralization of authority, onlya couple ofmembers have the decision-making authority orthe solehead office makes the managerial decisionsand therefore therest branches follow the direction provided by theheadquarters. But if the sales manager is assigned the task of improving sales performance, it will be difficult for him to work out at what point the sales performance will be deemed satisfactory by his superior.
These risks include lack of focus, de-motivated bureaucratization, workforce, and lack of flexibility. Information flows up to the top from all parties of the organization, where it is analyzed and synthesized so decisions can be made. Highly skilled employees will get tasks relevant to them. There is a clear delegation of responsibility. In view of organizational set up, the superior-subordinate relationship gives rise to this responsibility as the superior is vested with the authority to get the specified work done by his subordinates. His zone of acceptance will be determined by a number of factors. Determining whether authority is centralized or decentralized depends on the location and degree of decision-making.
It also refers to a scenario where all decision-making and control, and power are made from one office situated at one spot head office. Centralized governments can flatten out regional differences and make the nation more culturally uniform. Source of Authority : There are two versions of theory of authority. As a result, the firm saves money as it does not need to spend more to hire extra professionals. Authority Delegation Limitations: The extent of delegation of authority also restricts the authority of a manager. Difference between Delegation and Decentralization. A decentralized organization, on the other hand, is one in which the lower levels are allowed the discretion to decide most of the matters.
