PRESENTED BY -

RUBY THOMAS
ABHISHEK KUMAR SHARMA
SANTOSH KUMAR
MANISH MATHEW
BITTU KUMAR
IASMANI KUIUR
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MEANING:
Mannei oi piaciice in wlicl ielaied individual iasls and
ileii allocaiion io woil gioups is combined, io foim a
specialized funciional aiea ilai is disiinci fiom
oilei funciional aieas in an oiganizaiion.
Depaiimeniaiion is a paii of ile oiganizaiion piocess. Ii
involves ile giouping of common aciiviiies undei a single
peison's coniiol. Tle aciiviiies aie giouped on ile basis of
funciions of ile oiganizaiion. Tlis woil is done by a clief
execuiive of ile conceined oiganizaiion. Depaiimeniaiion
means ile piocess by wlicl similai aciiviiies of ile
business aie giouped inio uniis foi ile puipose of
faciliiaiing smooil adminisiiaiion ai all levels.
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O (i)Invas in EIIiinv-Depaiimeniaiion inciease ile opeiaiing
efficiency of ile employees. Tle ieason is ilai depaiimeniaiion
faciliiaies ile giouping of aciiviiies wlicl aie of similai naiuie.
O (ii)Fixation oI Aountabi!itv-since iobs aie well-defined and
iesponsibiliiies aie cleaily meniioned, ii is easy io fix accouniabiliiy foi
ile iesulis.
O (iii)Dv!opmnt oI Managvia! Fau!tis- Depaiimeniaiion divides
ile eniiie enieipiise inio vaiious depaiimenis. Tle depaiimenial
manageis aie given ile oppoiiuniiy io iale iniiiaiive. Depaiimeniaiion
is a iiaining device foi ilem. Tley can leain new manageiial slills wlicl
will lelp ilem io move liglei in ile lieiaicly.
O (iv)PvIovman appvaisa!- Depaiimeniaiion piesupposes ile
exisience of goal oi siandaids of peifoimance. Tlis lelp noi only in
fixing iesponsibiliiy bui also in evaluaiion of woil caiiied oui by an
individual oi a gioup oi ile depaiimeni as a wlole.
O (v)Bttv ontvo!- depaiimeniaiion faciliiaies beiiei coniiol because
siandaids of peifoimance aie well lnown.
MeLhods of ueparLmenLaLlon
O Dpavtmntation bv numbvs-similai iype of duiies aie peifoimed
by small gioups. Eacl gioup is coniiolled by a supeivisoi oi an
execuiive .Foi example, in ile Aimy, Soldieis aie giouped inio squads,
baiialions companies biigades and iegimenis on ile basis of alloimeni
of men io eacl oilei.
O Dpavtmntation bv Funtion-Tle mosi commonly followed basis
of depaiimeniaiion is by funciion. Undei ilis depaiimeniaiion, ile
aciiviiies aie giouped on ile basis of funciions wlicl aie io be
peifoimed.
Eacl depaiimeni is leaded by one iesponsible peison, wlo is diiecily
iesponsible io ile Geneial Managei.
Geneial
Managei
Pioduciion
Depaiimeni
Sales
Depaiimeni
Accouni
Depaiimeni
Finance
Depaiimeni
Puiclase
Depaiimeni
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Tlis iype of Depaiimeniaiion is followed wlen ile
pioduciion aciiviiies aie caiiied on in many places. Foi
example, a iexiile mill las many depaiimenis sucl as
Ginning, Spinning, weaving, dyeing and Piiniing, Pacling
and Sales. Eacl seciion will be in claige of sepaiaie
specialized peisons.
Geneial Managei
Piocess i Piocess : Piocess
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4. DEPARTMENTATION BY PRODUCT- In product
departmentation each products is organized as a separate
division with its Iull set oI manuIacturing ,selling and Iinancing
Iunctions.
MANAGING DIRECTOR
SPORTS GOOD
DIVISION
HOSIERY DIVISION
PLASTICS
DIVISION
PRODUCTION
SALES
FINANCE
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. It Iocuses individual attention on each product line.
2. Product departmentation Iacilitates eIIective
coordination.
3. It becomes possible to evaluate and compare the
perIormance oI diIIerent products.
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. It results in the duplication oI staIIs and physical
Iacilities.
2. Sometimes leads to diIIiculties in coordination.
3. It presents increasing problem in top management
control.
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O . DEPARTMENTATION BY CUSTOMER In this types oI
departmentation; an enterprise is divided into number oI departments on the
basis oI customers that serves. For e. g. a commercial bank may have
diIIerent departments Ior general public , business and public. Similarly a
departmental store may have separate departments Ior children, ladies and
gents.
MANAGING
DIRECTOR
MARKETTING
MANAGER
CONSUMER
SALES
INDUSTRIAL
BUYER
EXPORTS
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. It permits specialized attention and service to every
customer group.
2. It Iocuses on the need to employ the personnel with
special abilities.
DISADVANTAGES..
3 It creates diIIiculties oI coordination between the
departmentation.
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. DEPARTMENTATION BY TERRITORRY-
Territorial or geographical departmentation is adopted
when the production or marketing oI an enterprise are
widely dispersed over several regions or territories.
For e.g. A company may have several plants located in
diIIerent areas but manuIacturing the same product in
each areas.
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HEAD OFFICE
Easiein
Zone
Ceniial
Zone
Noiilein
Zone
Souilein
Zone
New Delli
Division
Clandigai
l Division
Ialandlai
Division
Aimei
Division
Biancl i Biancl : Biancl Biancl
Wesiein
Zone
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. Marketing division can meet the demands oI various
regions more eIIectively.
2. It Iacilitates the expansion oI business in various regions.
DISADVANTAGES..
. It creates problems oI communication and coordination
between various regional oIIices.
2. It may be diIIicult to provide eIIiciencies centralized
services to various departments located diIIerent areas.
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. DEGREE OF SPECIALISATION.
2. ADEQUATE ATTENTION TO KEY AREAS.
3. COORDINATION.
4. CONTROL.
. COST CONSIDERATIONS.
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Maning oI D!gation:
Deleqotion is o process of sborinq work onJ
outbority between o monoqer onJ bis suborJinotes.
lt belps in completinq tbe work in time, reJuces tbe
worklooJ of monoqers, motivotes onJ Jevelops
suborJinotes.
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Delegaiion is ile dynamics of managemeni. Ii is ile
piocess a managei follows in dividing ile woil
assigned io lim so ilai le peifoims ilai paii wlicl
only le can peifoim effeciively, and so ilai le can gei
oileis io lelp lim wiil wlai iemains"
- ouis A. Allen
Delegaiion means ile gianiing of auiloiiiy io
suboidinaies io opeiaie wiilin ile piesciibed limiis"
- Tleo Haimann
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THREE ELEMENTS
OF
DELEGATON
AUTHORTY RESPONSBLTY ACCOUNTABLTY
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O AUTHORITY: Auiloiiiy may be defined as ile iigli foi decision-maling.
Wlen a iigli io iale decision in iegaid io a paiiiculai maiiei is vesied in a
paiiiculai posiiion, auiloiiiy iemains aiiacled io ile posiiion. Auiloiiiy
is given by ile insiiiuiion and is, ileiefoie, legal oi legiiimaie. Auiloiiiy
flows downwaids .
O RESPONSIBIIITY: Responsibiliiy is ile obligaiion io do someiling. Ii is
ile duiy wlicl is peifoimed by ile employees. Ii flows upwaids, i.e., a
suboidinaie is iesponsible io lis immediaie supeiioi. Responsibiliiy is
peisonal and absoluie and ileiefoie, ii cannoi be delegaied.
O ACCOUNTABIIITY: Accouniabiliiy iefeis io ile obligaiion of an
individual io iepoii foimally io lis supeiioi foi ile piopei disclaige of lis
iesponsibiliiy .ii is ile answeiabiliiy of a suboidinaie io iendei an accouni
of lis aciiviiies io lis supeiioi. Tle peison wlo accepis iesponsibiliiy is
accouniable foi ile peifoimance of ile assigned duiies. Accouniabiliiy
giows oui of iesponsibiliiy and goes land in land wiil ii.
AUTHORITY IS DELEGATED, RESPONSIBILITY IS ASSUMED AND
ACCOUNTABILITY IS IMPOSED.
AUTHORITY FLOWS DOWNWARDS WHILE ACCOUNTABILITY OF
PERFORMANCE FLOWS UPWARD.
RESPONSIBILITY ARISES FROM AUTHORITY WHILE ACCOUNTABILITY IS
DERIVED FROM RESPONSIBILITY
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Meaning:
Ii is ile piocess of slaiing of iasls and auiloiiiy beiween a managei and lis
suboidinaies. Delegaiion iales place wlen a managei passes on io lis
suboidinaies some of lis iasls oi funciions, iogeilei wiil ile necessaiy
auiloiiiy io peifoim ile iasls oi funciions. Tle managei wlo so delegaies
also lolds lis suboidinaies answeiable foi due peifoimance of ile assigned
iasls. Tlus, ile piocess of delegaiion involves ile assignmeni of iasls oi
funciion, eniiusimeni of auiloiiiy and imposiiion of accouniabiliiy by a
managei wiil iespeci io lis suboidinaies.
Chavatvistis oI d!gation oI authovitv:
i. Delegaiion involves slaiing of auiloiiiy
:. Delegaiion envisages exisience of of auiloiiiy in ile lands of ile delegaioi
. Delegaiion may be specific oi geneial
. Delegaiion defines ile limiis wiilin wlicl suboidinaies can aci
independenily.
. Delegaiion does noi ieduce ile auiloiiiy of ile delegaiion.
. Afiei delegaiing auiloiiiy, a managei can enlance, ieduce oi iale bacl ile
delegaied auiloiiiy as pei ile needs and ciicumsiances of ile siiuaiion.
. Delegaiion is an aii.
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i) Delegaiion ielives ile managei fiom leavy
woilload
:) Delegaiion leads io beiiei decisions
) Delegaiion speeds up decision maling
) Delegaiion lelps io impiove ile moiivaiion and
moiale of ile suboidinaies
) Delegaiion cieaies a foimal oiganizaiion
siiuciuie
) Delegaiion faciliiaies iiaining of suboidinaies
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#. Assignmnt oI dutis:
A managei assigns duiies oi iasls( musi be defined in cleai and piecise
ieims) io lis suboidinaies.
Tle iaigeis io be aclieved by ile suboidinaies slould also be specified
#. Gvanting oI authovitv:
Adequaie auiloiiiy is delegaied io suboidinaies io enable ilem io
peifoim ile assigned duiies.
Suboidinaies aie given ile iigli io use iesouices io liie and fiie people,
io iepieseni ile supeiioi, eic.
#. Cvation oI an ob!igation:
Once a peison accepis a duiy and ile auiloiiiy foi ii, le becomes
iesponsible foi ile saiisfacioiy peifoimance of lis duiy.
Tle suboidinaies musi be leld accouniable foi ile piopei exeicise of
auiloiiiy delegaied io ilem and foi ile iesulis.
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#.Funtiona! dIinition:
Tle funciions and goals of eveiy posiiion and iis ielaiionslip wiil oilei posiiions slould be
cleaily defined.
Duiies, obieciives and policies musi be fully explained io ile suboidinaies.
#.Pavitv oI authovitv and vsponsibi!itv:
Auiloiiiy slould be co-ieiminus and co-exiensive wiil ile iesponsibiliiy of ile suboidinaie.
Responsibiliiy wiiloui auiloiiiy causes fiusiiaiion and auiloiiiy wiiloui iesponsibiliiy iesulis
in misuse of powei.
#.Abso!utnss oI vsponsibi!itv:
Responsibiliiy is absoluie and ii cannoi be delegaied
An execuiive cannoi abdicaie lis obligaiion io lis own supeiioi by delegaiing lis auiloiiiy,
iailei lis iesponsibiliiy is incieased because le becomes accouniable foi ile aciions of lis
suboidinaies in addiiion io lis own aciion.
.D!gation bv vsu!ts xptd:
Auiloiiiy slould be delegaied accoiding io ile iesulis expecied fiom suboidinaies.
Befoie delegaiing auiloiiiy ile goals oi iasls expecied fiom suboidinaies slould be cleaily
defined.
.Unitv oI ommand:
Eveiy peison slould ieceive oideis fiom and be accouniable io only one supeiioi.
Dual suboidinaiion slould be avoided and no suboidinaie slould be leld accouniable io moie
ilan one supeiioi.
.Authovitv !v! pvinip!:
Suboidinaies slould be peimiiied io exeicise discieiion and iudgmeni wiil ile limiis of
delegaied auiloiiiy.
Only ilose maieis slould be iefeiied io ile liglei level wlicl cannoi be deali wiil effeciively
ai ile lowei levels.
.C!avitv oI d!gation:
Tle limiis of auiloiiiy delegaied io suboidinaies musi be cleaily defined .
Cleai limiis of auiloiiiy enable suboidinaies io lnow ileii aiea of opeiaiion and ile exieni of
fieedom of aciion and io exeicise iniiiaiive.
.Comp!tnss oI d!gation :
All ile necessaiy iasl in ile enieipiise slould be assigned.
Tleie slould be no oveilaps and spliis.
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FORMAL
INFORMAL
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SPECIFIC
GENERAL
CLnL8AL
In ilis case ile supeiioi iells lis suboidinaie io do
wlaievei ile laiiei feels necessaiy. Tlis is a case of
uncleai delegaiion wleie ile suboidinaie does noi
fully undeisiand ile naiuie of duiies and limiis of lis
auiloiiiy. Usefulness of delegaiion is losi in ilis case.
Tleie will be oveilapping of aciiviiy and
misundeisianding among people.
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In ilis case ile delegaiion will be piecise and cleai.
Tleie will be no need foi suboidinaie io wondei low
fai ileii auiloiiiy goes and io expeiimeni by lii oi
miss. Ii will also lelp ile boss io lold ile suboidinaie
accouniable.
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Wlen we aie doing some iob as ii is impoiiani, bui
we aie noi designaied peison io do ii. Tlis lappens
mainly in case of emeigency wlen we lave io do
someone else woil as ii is impoiiani, bui as le is noi
pieseni, someone las io do ii.
WhaL can be deleaaLed ??
O Auiloiiiy is delegaied wlen some supeiioi giani
some discieiion io lis suboidinaies.
O Auiloiiiies lile ialing iouiine decisions foi
implemeniaiion of iasls, and implemeniaiion of
policies can be delegaied.
O Auiloiiiies lile ialing policy decisions cannoi be
delegaied.
O And one veiy impoiiani iling...AUTHORITY CAN BE
DELIGATED BUT ACCOUNTABILITY CANNOT BE
DELEGATED.
Foi example If a senioi execuiive assign some
iesponsibiliiy io iunioi execuiive, le las io delegaie
coiiesponding auiloiiiy also. Tle iunioi execuiive may in
iuin iale ile lelp of a foieman woiling undei lim in
peifoiming ile woil assigned. Bui ile iunioi execuiive will
coniinue io iemain iesponsible foi ile woil assigned, ilai
means if ile foieman does noi peifoim lis woil piopeily,
iunioi execuiive cannoi pass blame on lim...uliimaiely
peison wlo will be leld iesponsible will be ile iunioi
execuiive.
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Delegaiion appeais io be a simple piocess bui many
difficuliies come in way of effeciive delegaiion...
Mainly iliee linds of difficuliies aie faced wlen
delegaiion is piaciiced..
O i. Difficuliy on paii of supeiiois
O :. Difficuliy on ile paii of suboidinaie
O . Difficuliy on paii of oiganisaiion.
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O Lacl of iecepiiveness: Managei musi be willing io give
oilei peoples idea a clance, if le feels ilai le can do
ile iob beiiei limself, le will be ieluciani io delegaie
auiloiiiy.
O Lacl of abiliiy io diieci: In ilis case even if ile
managei is willing io delegaie bui le lacls ile abiliiy io
guide and diieci lis suboidinaie, cieaies luidle in
effeciive delegaiion.
O Unwilling io lei go: Many manageis aie afiaid ilai if
iley lei ileii suboidinaie io iale decisions iley may
ouisline ilem... so iley iiy io dominaie ileii
suboidinaie in eacl and eveiy siep. So ile managei
wlo wisles io delegaie effeciively musi be willing io
ielease ile iigli io male decisions io ile suboidinaie.
O Lacl of iiusi in suboidinaies: lacl of confidence in
capaciiy, abiliiy, and dependabiliiy on suboidinaies,
obsiiuci supeiiois io delegaie auiloiiiy. Manageis
lesiiaie in giving an oppoiiuniiy io ileii suboidinaies
io leain fiom ileii own misiales.
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Many iimes ii may lappen ilai, ile suboidinaies
may be ieluciani io accepi auiloiiiy because of ile
following ieasons.
O i. Lacl of self confidence
O :. Desiie io play safe by depending on ile boss io iale
all decisions.
O . Feai of commiiiing misiale and being ciiiicised by
ile boss.
O . Oveibuidened wiil duiies.
O . Inadequacy of auiloiiiy and infoimaiion and
woiling faciliiies foi peifoiming ile duiies.
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O i. Defeciive oiganisaiion siiuciuie and non claiiiy of
auiloiiiy and iesponsibiliiy ielaiionslip.
O :. splinieied auiloiiiy. (Wlen auiloiiiy is delegaied
io iwo oi moie peisons iogeilei)
O . Infiingemeni (disobeying) of ile piinciple of uniiy
of command.
O . Lacl of effeciive coniiol meclanism.
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Deceniializaiion iefeis io ile sysiemaiic effoii io
delegaie io ile lowesi levels all auiloiiiy excepi
ilai wlicl can be exeicised ai ceniial poini. In ile
woids of Heniy Fayol Eveiyiling ilai goes io
inciease ile impoiiance of ile suboidinaie's iole is
deceniializaiion; eveiyiling ilai goes io ieduce ii
is ceniializaiion.
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W Reduction in the burden oI chieI executive.
W Quick decision.
W DiversiIication oI activity.
W Development oI managerial personnel.
W EIIective control & supervision.
W EIIective coordination.
W Improvement oI motivation and morale.
W Miscellaneous economies.
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Lack oI coordination.
Lack oI uniIormity.
Heavy overheads.
Unsuitable Ior small Iirms
External constraints.
Pow Lo achleve effecLlve
decenLrallzaLlon
O Appropriate degree oI centralization.
O Development oI managers.
O EIIective Communication.
O Coordination.
O Adequate controls.
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O II an organization does not delegate a large part oI
responsibility and authority in decision making the
organization is said to be centralized.
O Decentralization means reservation oI some authority
(power to plan, organize, direct & control) at the top level
& delegation oI authority to make decisions at point as
near as possible to where action take place.