TOPIC FOUR: ORGANIZING FUNCTION

Definition:
Organizing can be defined as a process of defining tasks and activities to be carried out in order
to achieve particular objectives.
The process of organizing also involves the allocation of responsibilities so that everyone in the
organization know their tasks and are aware of the resources they have at their disposal in order
to accomplish their tasks within a particular time frame.
N.B. For an organisation to achieve its goals and activities, it requires to have an organisation
structure.
Organization structure is a chart/design that describes the way in which the inter-related
groups in an organisation are constructed.It will show the chain of command and the official
channel of communication that exists within an organisation.
Elements of Organisation Pattern
 Job Definition: This refers to the specific tasks, duties, and responsibilities that are
associated with a particular job within an organization.
 Authority: Authority is the power or right given to an individual or a position to make
decisions, guide/direct the actions of others, and ensure compliance with organizational
policies.
 Span of Control: This is the number of subordinates that report directly to a single
manager or supervisor.
 Responsibility: Responsibility is the duty or obligation assigned to an individual to
complete a specific task or assignment.
 Accountability: Accountability means being held answerable for the outcomes of one's
actions or the actions of subordinates. It ensures that individuals are responsible for their
performance and can be held accountable for their actions.
Organisation
Definition: According to Chester Bernard an organisation is a system of consciously coordinated
activities or forces of people working together and formally agreeing to combine their efforts for
a common purpose.

Types of Organisations

1. Formal Organisation
 A formal organisation is simply a pattern of relationships and tasks defined by official
rules, policies and systems.
 It’s made up of official authority and responsibility relationship.
 It’s a structure of well-defined jobs each bearing a definite measure of authority and
responsibility designed to enable the people to work more effectively together in
accomplishing organisms goals.
 It lays down the channel of communication, flow of authority accountability, rules and
procedures, etc.
Characteristics of Formal Organisation
i. Has defined inter-relationship
ii. Based on rules and procedures
iii. Based on division of work
iv. It’s deliberately created. It’s created to achieve organism’s goals
v. It’s impersonal i.e. feelings are ignored
vi. It’s stable
vii. Flows downwards and its delegated.

2. Informal Organisation
This is a pattern of influence and interaction among people in an organisation which is motivated
by need to feel a sense of belonging and a great need to fit in, to be lived or to be one of them.
It is a set of evolving relationships and patterns of human interactions with an organisation which
are not officially prescribed.
Its natural and spontaneous network of personal and social relationships between individuals
formed on the basis of personal attitudes, values, friendship, prejudice, interest, physical location
of work place, similarity of work etc
Characteristics of Informal Organisation
i. Based on formal organisation – it’s created after formal organisation is created/formed.
ii. Has no written rules and procedures
iii. Has independent channel of communication flow of communication cannot be specified
iv. Not deliberately created emerges out of mutual relationship and taste.
v. Has no place in an organizational chart – no into about it in the organisation manual
vi. Lacks stability
Importance of Organizing
i. Promotes specialization and speed performance of tasks.
ii. Helps in avoiding duplication of work and overlapping of responsibilities among various
employees and work groups.
iii. Scientific division of work – the total work load is divided among different individuals and
groups based on their qualification experience and competence.
iv. Creates a solid foundation for focusing managerial attention and actions on the
accomplishment of enterprise objectives.
v. Encourages creative thinking on the part of the employees.
vi. Provides the optimum use of technological improvements.
vii. The sound organizing increases managerial efficiency.

Principles/Guidelines to Organizing
1. Clear line of authority which should run from top to bottom and this, will make each
individual in the organisation to know the rights authority to be able to perform respective
roles.
2. Unity of command – There should be no subordinates reporting to many bosses/superiors.
3. The authority and responsibility should be delegated as far down as possible. This means
effective organisation encourage participation of subordinates.
4. The number of levels of authority should be as few as possible for the purpose of easy
communication.
5. The principle of specialization should be applied as it facilitates efficiency and quality of
work.
6. The line and staff action should be kept separate the overlapping of the functions results to
role ambiguity
7. The span of control should be reasonable and well established
8. Work distribution – There should be fair and even distribution of work among employees.

Process/Steps of Organizing
The process of organizing consists of the following steps:
1. Determination of tasks and division of work - The first step in organizing is to determine the
task required and accomplishment of set objectives.
In a modern business enterprise, manufacturing, marketing, purchasing, financing in
personnel are considered to be the main activity of the business.
2. Grouping of activities - The various activities identified under the first step are classified into
appropriate department and divisions according to similarities and common purpose. Such
grouping of activities is known as departmentation
3. Assignment of duties - The individual departments are then allocated different positions and
individuals. The duties of every individual are defined on the basis of his/her ability and
aptitude. Clear definition of responsibility of each is necessary to avoid duplication of work
and overlapping of efforts. Every individual is made responsible for the specific job assigned
to him. In this way, duties are assigned to specific individuals.
4. Delegation of authority - Once the duties and responsibilities of every individual have been
fixed, s/he must be given the authority necessary to carry out the duties assigned to them.
5. A chain of command is created from top to bottom through successive delegation of
authority. Different individuals are linked horizontally and vertically by establishing formal
authority responsibility relationship. Provision is made for the coordination of individual
efforts.
6. Establishment of span of control – Refers to the number of employees who report directly to
a single manager/supervisor.

SPAN OF MANAGEMENT/SPAN OF CONTROL

 This refers to the number of people a supervisor/superior can effectively supervise.
 It’s the number of subordinates reporting directly to a superior.
 Refers to the number of subordinates who report directly to a single manager or supervisor within
an organization
Types of span of control:
Span of control refers to the number of subordinates who report directly to a single manager or
supervisor within an organization.
A. Narrow span of control.
B. Wide span of control.

A. Narrow Span
A narrow span of control refers to a management structure where a supervisor or
manager oversees a small number of subordinates. This type of span is characterized by a
closer relationship between managers and their direct reports, allowing for more detailed
supervision and support
 Store Manager

Accountant Purchaser

Cashier Custodian

Store person

Advantage of Narrow Span of Control

i. Allows the manager more time as subordinates supervise. This enable the manager to
guide in supervise these subordinates more effectively.
ii. The manager has more, time available to perform more of important task personally
rather than delegate to subordinates.
iii. Improves quality of decision making
iv. It is easier to develop group cohesiveness within the similar group of employees
reporting to each manager.
v. Helps more effective communication.
Disadvantages of Narrow Span of Control
i. Tends to increase the total number of organisation levels. This makes it difficult for
managers at higher level to keep in touch with ground realities at operating level.
ii. Increases total number of employees in organisation. This increases cost of labour on
employees.
iii. Creates problem of coordination between different managers and original units.

B. Wide Span - A manager who has a large number of subordinates is said to have a wide span
of control. A wide span of control results in an organisation that has relatively fewer levels
of management and this is referred to as flat organisation.

EXAMPLE:

Store Manager

cashier Accountant Purchaser custodian Store person

Advantages of Wide Span of Control

i. Gives subordinates the chance for more independence
ii. Forces managers to develop clear goals and policies.
iii. Helps managers to delegate work effectively and select and train employees carefully.
iv. Collaboration: Promotes a more collaborative and inclusive work environment.
v. Direct Communication: Information flows more directly, reducing miscommunication
vi. Reduced Administrative Costs: Fewer managers needed, lowering salary and administrative
expenses.

Disadvantages of Wide Span of Control

i. Managers management become overloaded with work
ii. Not suitable for complex activities
iii. It might result to high indiscipline cases
iv. Might create coordination problems
v. Might create communication, problems
vi. Not suitable for incompetent employees.

Factors Influencing the Span of Control

1. Geographical dispersion – if branches are widely dispersed, span will be small
2. Capability of workers – if they are highly capable, therefore they need less supervision.
3. Capability of the boss – an experienced boss with good knowledge of workers will be
able to supervise more workers.
4. Similarity of tasks – if tasks by subordinates are similar, then the span will be wide.
5. Volume of other tasks – if the boss has other responsibilities e.g. involvement in projects,
then the number reporting to him should be smaller.
6. Capacity and philosophy of the superior – If the manager comprehends and resolves
problems quickly, gets allotting with staff quickly, commands loyalty, he/she can supervise
many people.
A managers philosophy can also influence the span of management e.g. an empire build will
tend to have a wide span of management.
7. Ability of subordinates – The more competent, well experienced and trained the staff are, the
less guidance they need and therefore the more of them a superior can supervise. The
willingness of staff to undertake responsibility and risks also applies.
8. Nature of work – In general the more complex the work the shorter the supervision and vice
versa.
9. Clarity of plans – If the plans are clear subordinates, authority and responsibility are well
defined, subordinates don’t need frequent guidance from superiors leading to a wide span of
management.
10. Degree of decentralization – In highly decentralized organisation, a manager does not have to
make many decisions himself and can therefore supervise a wide number of subordinates and
vice versa.
11. Communication techniques – The more effective and well communication systems are, the
wider the span of management e.g. well established grievances technique reduces face to face
contacts/interactions
12. Control techniques – It also affects the span of management. I’m personal techniques e.g.
through reporting and budgeting allows for a wider span than personal supervision. The use
of objective standards also reduces to need for closed supervision.

DEPARTMENTATION
This is the process of creating departments. It involves grouping individual jobs into
departments. The larger and complex organisation is divided into smaller and flexible
administration units.
A department is a distinct area or unit or system of the organisation specific duties over which a
manager has authority for performance of department duties.

Basis/Types of Departmentation
1. Functional departmentation
2. Product departmentation
3. Geographical/territorial departmentation
4. Depertmentation by customers
5. Depertmentation by process
6. Depertmentation by numbers
7. Matrix organisation structure.
1. Functional Depertmentattion
Under this, each major/basic activity is organized as a separate department - a basic
activity/function is that activity whose performance is vital for organisations survival.
The major functions are further subdivided into functions/sections.

Advantages of Functional Depertmentattion

i. Cheaper than other forms of depart mentation and there is minimal duplication of
resources
ii. There is specialization.
iii. Each functional area is given attention and departmentation begins by identifying basic or
essential activities that are vital for firms survival.
iv. It is logical because it groups similar activities together.
v. It contributes to organize simplicity.
vi. Reduces conflicts since the functional depart mentation are differentiated.
vii. Easy to delegate
Disadvantages of Functional Depertmentattion
i. Due to inter-dependence of departments, failure of one department will lead to the failure
of the entire system.
ii. Inter-dependence between may lead to conflicts between departmental managers who
may has objectives that are conflicting.
iii. It does not allow for development of general managers
iv. It is not possible to identify where profits/losses are made on individual products
v. The chain of command becomes excessively long as new levels/sections are added and
this may slow down communication.
vi. Leads to slow decision making
2. Product Departmentation
Each major product is organized as a separate department and each department looks after the
production, sales and finance of one product.
Advantages of Product Departmentation
i. Failure in one department does not affect other departments
ii. It is possible to develop the general managers
iii. Reduces the chain of command.
iv. Facilitates faster decision making
v. Possible to identify the unprofitable product in the product portfolio.
vi. There is inter-product competition which is healthy for the company.
vii. There is better quality products and services
Disadvantages of Product Departmentation
i. Duplication of efforts and facilities
ii. It may be more expensive than functional depart mentation
iii. There may be under utilization of resources when demand for a particular product falls.
iv. May complicate the organisation structure especially where the firm has many products
in the product portfolio. This brings about coordination problems for the senior managers.
v. It may be difficult to achieve organisation goals since little or no coordination takes place
between departments.
3. Geographical /Territorial Departmentation
Very useful to a large scale enterprise whose activities are geographically spread /dispersed. It
occurs where the firm has many activities in different regions of the country.
Examples of such departmentation include banks, insurance companies, transport companies,
distribution agencies etc.
Under territorial departmentation; activities are divided into zones, or divisions and branches.

Advantages of Geographical /Territorial Departmentation

i. More convenient for the customers
ii. Branches/subsidiaries are able to react in local conditions more appropriately.
iii. The branches i.e. managers and workers in the branch are able to serve the customers
better.
iv. Facilitate development of general manages
v. There is faster decision making because the consultation of the head office is minimized.

Advantages of Geographical /Territorial Departmentation

i. The branches could be quite expensive to maintain
ii. Communication problems may arise
iii. The control problems may arise for regions that are in remote locations
iv. Managers may pursue their own interest because the general manager is absent to
supervise them
v. Duplication of efforts and activities.
4. Departmentation by Customers
Under this basis of departmentation, activities are grouped according to the type of customers
e.g. a large clothes enterprise may be divided into retail, wholesale and export divisions
This type is mostly appropriate for banks, departmental store etc.
Each department specializes in serving a particular class/category of customers.

Advantages of Departmentation by Customers

i. Special attention can be given to particular taste and preferences of each class of
customers. Customer’s satisfaction enhances the good will and sales of the enterprise.
ii. The benefits of specialization can be derived
iii. The enterprise gains intimate knowledge of the needs of each category of customers.

Advantages of Departmentation by Customers

i. As such depart mentation applies only to sales persons; there may be difficulties in
coordinating the activities of different functions.
ii. There may be under utilization of facilities and man power, particularly during periods of
low months.
iii. Managers of customer department may put pressure for special facilities and benefits.
iv. It may lead to duplication of activities
5. Equipment/Process Departmentation
Under this basis, activities are grouped on the basis of production processes or equipment
involved. This is generally used in a manufacturing enterprise and at a lower level of
organisation e.g. a printing press may consist of composing, proofreading and binding.

Advantages of Equipment/Process Departmentation

i. Encourages specialization
ii. Proper maintenance of equipment’s
iii. Effective utilization of manpower
iv. The machines are arranged in such a way that a series of operations on material is
visible making operations economical.

Disadvantages of Equipment/Process Departmentation

i. Difficulties in coordinating different process departments
ii. Conflict among managers of different processes may arise
iii. Volume of production must be large enough to justify a separate department.

6. Departmentation by Numbers
Entails identification of the persons who perform same duties and putting them under one
superior/manager. Its success lies on the number of persons included in the group.
In this method, the main limitation is that it is assumed that the success of work depends only on
the number of persons involved. It is widely applied in the military.

Advantages of Departmentation by Numbers

i. Quite effective especially where there few persons to be involved.
ii. Enhances coordination within a unit as the members will only report to a single
manager.

Disadvantages of Departmentation by Numbers

i. With a large number of persons, it may fail to achieve the desired results
ii. Useful only at the lowest level of organisation
iii. Groups composed only of specialized personnel are likely to be more efficient
than those based only on numbers.
7. Matrix Organisation Structure
The essence of matrix organisation normally is combining functional and project/product
patterns of departmentation in the same organisation structure.
This is often done in engineering where a project manager is put in charge of all the engineering
and support personnel necessary to accomplish the entire project.

Advantages of Matrix Organisation Structure

i. It is result oriented
ii. Professional identification is maintained
iii. Pinpoints product profit responsibility

Disadvantages of Matrix Organisation Structure

i. Conflicts in an organisation activity exists
ii. Possibility of dis unity of command
iii. Requires managers who have effective human relations.

Problems with Matrix Management

 A state of conflict exists between functional and project managers as both compete for
limited resources
 Role conflict – role ambiguity/overlap
 Imbalance of power and authority as well as horizontal and vertical influence on the project
and functional managers.
 Because of potential conflicts, managers may want to protect themselves against blame by
putting everything in writing which increases admin cost.
 Matrix organisation requires a lot of time consuming meetings.

Group Assignment
1. Identify the different types organization structures, advantages and disadvantages of each
2. For each organization structure, Outline five circumstances under which each may be
adopted by an organization
AUTHORITY, RESPONSIBILITY, ACCOUNTABILITY AND POWER

1. Authority
This is the legitimate right to give orders and to get those orders obeyed.
The exercise of authority involves superior subordinate’s relationship.
Authority in management relates to the right to decide, direct others to take action or to perform
certain duties in order to achieve organisation goals.
It can be seen to take 3 characteristics:
a) It is a right
b) It involves making decisions, taking action or performing duties
c) Granted for the purpose of achieving organisation goals.
Therefore authority is a legitimate power exhibited by the original structure

2. Responsibility
It is an obligation to perform work / activities assigned to an individual.
Therefore, accepting a particular job entails taking up the responsibility to perform the tasks
involved.
Responsibility is usually better referred to as an obligation.
It is mandatory and it depends on the level of authority given to perform the assigned tasks
Responsibility can be continuous or can be a specific obligation as it goes hand in hand with
accountability.

3. Accountability
It is the mechanism of ensuring that a person who is supposed to do a particular job actually does
it correctly.
It is a way of becoming answerable to the attained results
Accountability is closely linked to responsibility.
Therefore, a manager’s accountability cannot be delegated to someone else.
Further managers are usually accountable not only for their actions and decisions but also for the
actions of the subordinates.

4. Power
It is the ability to influence the belief, actions/behavior of another person.
Unlike authority which is official, power is largely personal.
Sources of Power

i. Legitimate power these results from the formal opposition held by an individual e.g. general
manager, marketing manager, personnel manager etc.
ii. Reward power – derived from a person’s ability to reward other individuals
iii. Charismatic power – based on the desire to be liked by others
iv. Usually, it is exhibited when one possesses a unique character or personality that is like able
by others.
v. Seen when one is able to influence others through his/her unique personality e.g. influence of
musicians on youths.
vi. Expert power – its power out of knowledge or skills held by an individual
vii. Comes from a person possessing special knowledge or skills e.g. teachers, engineers, doctors
etc.
viii. A person may have a considerable influence on others because of special knowledge
he/she possesses.
ix. Coercive power – its power derived from ability to punish/recommend a punishment
x. This power can be formal/informal such as right exercised by others to fire/dismiss workers
or the right of informal groups to punish a member through isolation.

Differences between Power and Authority

Authority Power
1. Positional 1. Personal
2. Has one source i.e. organizational 2. Can originate from several sources
structure 3. Can be both formal or informal
3. Associated with formal organisation and
always formal 4. Often personal and subjective i.e. can be
4. It is impersonal it is exercised in order to exercised to achieve personal interest
achieve organisations goals and 5. Can flow from any direction.
objectives. 6. Some cannot be delegated e.g. expert
5. Usually flows from top to bottom power.
6. Can be delegated. 7. This is not a requirement for power.

7. Authority and responsibility should

always be in balance Found only in the
higher position in the organisation
DELEGATION OF AUTHORITY
This is the process of vesting decision making or performance of duties to the subordinates.
It is the process of passing the need authority to subordinate so as to accomplish particular
responsibility.
Authority is said to be delegated when a superior assigns part of his rights to the subordinate.

Features of Delegation of Authority

i. Occurs when a manager grants some of his rights to a surbodinate
ii. A manager cannot delegate authority unless he himself possesses that authority
iii. A manager never delegates all his authority to a surbodinate he only transfers part of his
authority
iv. Delegation does not imply reduction of status of a manager – the manager retains the right to
exercise control over the surbodinate. Therefore, a manager can reduce, enhance, take back
or withdraw the delegated authority.
v. There is no manager who can avoid responsibility by delegating authority to subordinates.
Importance of Delegation of Authority
i. Allows the manager to distribute his workload among his subordinates
ii. Delegation pushes authority nearer to the point of action. As a result, decisions can be taken
more easily without referring to higher authorities.
iii. Helps to improve motivation and morale on the part of employees due to their involvement in
decision making activities
iv. It’s a means of training and developing subordinates executives. This is because the
subordinates acquire decision making skills through exercise of authority.
v. Improves harmony within the organisation as there is shared authority between the manager
and subordinates
vi. Can facilitate growth of an organisation through the involvement of subordinates in positions
with authority.
Principles /Guidelines to Effective Delegation of Authority
1. Grant/give/permit proper amount of authority – The responsibility expected from
subordinates should be merged/balanced with proper amount of authority. Failure to do so
mean the subordinates will be held responsible for activities they cannot achieve.
2. Define the results expected the delegator must ensure that he clearly defines the results
expected. Ambiguous results should be avoided if the subordinate is to be held accountable
over delegated authority.
3. Consider the capability of the subordinate’s - Authority should be held to those who are
competent and are willing to accept the authority.
In delegation of authority, a manager should consider attributes such as;
 The subordinate background
 Competence
 Experience
 Limitations in the ability of subordinates
4. Authority should be clearly stated – Authority delegated should be well defined to the
subordinates and the relationship that exist between these authorities in others within the
organisation. This is important as it helps the organisation to know how much authority he
possesses in the execution of his duties.
5. Follow the unit/chain of command - This means that delegation of authority should always be
done in line with organisation structure i.e. a subordinate should only report to one superior.
6. Develop a willingness to delegate – Lack of courage on the part of managers to delegate
implies that subordinates has a lessor part to play in decision making
7. Create a supportive climate – Managers must give the necessary support to accompany
delegation of authority to subordinates. Both material and moral support will enable the
subordinates to exercise the delegated authority effectively.
8. Develop an effective communication system – Even with delegation of authority, there is a
need for free flow of information between the managers and subordinates.
Reasons why Managers may not Delegate
i. The feeling of superiority complex – It is where managers has a feeling that the subordinates
are not capable of doing any work without supervision. Therefore the manager of the
concentrates all the decisions making powers on himself.
ii. Fear of exposure – If the manager is incompetent, he may fear delegation of authority
especially where it is likely to expose his incompetence.
iii. Habit pattern as a result of low supervision - A manager may have developed personal
contact with all the aspects of his work.
iv. Risk avoidance – This is the feeling of insecurity on the part of managers. The insecurity
will relate with the fear of losing the position or to the fear that the subordinate may misuse
the delegated authority and thereby causing failure on the part of the manager.
v. Managers who are able to do their responsibilities may not see the importance of delegating.
vi. Geographical limitations between manager and subordinates - Managers may become
reluctant to delegate part of the authority where there is geographical barriers between them
and subordinates.
vii. Communication techniques adopted under delegation of authority – Managers may not
delegate the authority in cases where there is lack of proper communication channels
between them and subordinates.
Reasons for Subordinate’s Failure to Accept Delegated Authority
i. Fear of responsibility subordinates may avoid the delegated authority due to the fear of
responsibility of a company
ii. Fear of criticism – subordinates may be reluctant to accept delegation of authority because of
fear of being criticized of their dismissal.
iii. Inadequate resources – subordinates may avoid delegated authority because of fear that
necessary resources may not be available to enable them execute that duties.
iv. Lack of self-confidence – sometimes subordinate may avoid. D.A due to lack of confidence
to their capability to discharge new responsibilities
v. Inadequate incentives – if the D.A is not accompanied by a suitable incentive, the
subordinate may not be motivated to accept it.
Advantages of Delegation of Authority
i. Promotes actions within the organisation as no consultation is required before decisions are
made.
ii. Enables the managers to perform higher levels of activities since some of the decisions are
left to the lower level managers and subordinates.
iii. Helps the subordinates to develop themselves professionally by doing challenging activities.
In this way the subordinate becomes more confident.
iv. Leads to better decision making as decisions are made at the lower organisations level close
to where the problems are.
v. Improves the subordinate’s morale due to their active involvement in decision making
activities.
vi. Has the benefit of specialization and harmony within the organisation.
Disadvantages of Delegation of Authority
i. Subordinates may make serious mistakes regarding the delegated work for which the
superiors will take the responsibility.
ii. Subordinates may have the knowledge and skills required to do the delegated work but may
not put more max effort as managers would do.
iii. Where manager assigns responsibility without appropriate D.A, the delegated work will not
be properly done.
iv. Managers may delegate to subordinates who avoid decisions and therefore even if there are
no mistakes done by the subordinates, the work suffers.
v. There is increased cost associated with D.A due to incentive created.

Barriers to Effective Delegation of Authority

i. Negative personal attitude on the part of managers – some managers lack confidence in their
subordinates and therefore find it difficult to delegate authority to them.
ii. Unwillingness to let others make mistakes – mistakes are part of learning and subordinates
should always be allowed to make mistakes provided that it is not an act of negligence.
iii. Managers may be reluctant to delegate because of the fear that subordinates will make
mistakes in the exercise of D.A.
iv. Perceived threat superiors may fear to delegate the authority especially if it will expose their
incompetence their incompetence there by leading to their replacement by the subordinates.
v. Disrespect of others – some managers is unable to welcome different opinions from others
and therefore become unwilling to delegate their authority.
vi. Unwillingness to let go – delegation of authority involves willingness to give up part of ones
authority to others.
vii. Managers may fail to delegate because of the need to retain their authority.

CENTRALIZATION AND DECENTRALIZATION OF AUTHORITY

Decentralization of Authority
Decentralization is the tendency to disperse decision making authority in an organisation
structure.
It is a fundamental aspect of delegation to the extent that if authority is not delegated, it is
centralized. A policy of decentralization affects all areas of management.
Centralization of Authority
Centralization refers to the degree to which authority is retained by the higher level managers
within an organisation rather than being delegated. If a limited amount of authority is delegated,
the organisation is usually characterized as being centralized.
Advantages of Centralization
i. Produces uniformity of policy and actions
ii. Results in fewer risks of errors by subordinates who lack either information or skills.
iii. Utilizes the skills of central and specialized experts.
iv. Enables closer control of operations
v. Provides for integration i.e. keeps all parts of organisation moving harmoniously towards to
common objective.
vi. Enables emergency decisions to be made.
vii. Lowers the cost of operation as it reduces duplication of resources.

Disadvantages of Centralization
i. Resistance to change – centralization of authority usually means most of ideas and policies
are brought up and discussed in small circles of leaders.
ii. This prohibits intersection of new blood/new ways of doing thing.
iii. Poor creativity – an overly top-down organisation approach naturally prohibits creative
thinking and innovative ideas from front line levels.
iv. Limited commitment – when big bosses at central office direct from line managers and
employees the level of loyalty is often limited.
Factors Affecting the Degree of Centralization and Decentralization of Authority
1. Size and complexity of the organisation – The larger the enterprise, the more the authority
the central manager is forced to delegate. Dispersion of the organisation geographical
dispersion of the organisation tends to result in greater decentralization of authority.
2. Competence of personnel available – The competence and capability of subordinate is an
important determinant of the degree of centralization/decentralization
3. Adequacy of communication system – Managers may seek to avoid decentralization through
the development of a common system that provides the speed, accuracy and capacity of
information needed for top management to exercise centralized control
4. History of the organisation – A firm is likely to have a very centralized structure if it has
grown primarily from within under personal leadership.
5. Philosophy of top management – The attitude of top managers has an important bearing from
the degree of centralization or decentralization.
6. Importance of the decision – Decisions which are vital for the survival and growth of the
organisation are typically made at the top management while participatory oriented managers
will favour decentralization.
7. Uniformity of policy – The greater the need for uniformity of policy, the greater the degree
of centralization.
COMMITTEE DECISION MAKING

A committee is a group of persons asked to consider, investigate or act for some matter(s) and
report on the matter. The committee meets for consideration of matters brought before it.
Committee may also be known with a wide variety of other names such as a task force, a council,
board, an agency or commission.
Five Benefits of Committees in Decision-Making

1. Broad Range of Ideas: Committees bring together members from different departments,
backgrounds, and expertise, which leads to a variety of viewpoints and ideas. This diversity
can enhance creativity and innovation in the decision-making process.
2. Shared Responsibility: Decisions made by committees are a result of collective input, which
spreads responsibility among members. This can reduce individual risk and promote a sense
of shared ownership over decisions.
3. Improved Decision Quality: Committees can engage in detailed discussions and thorough
analysis of issues, leading to more informed and well-considered decisions.
4. Increased Legitimacy and Transparency: Decisions made by a group are often viewed as
more legitimate and credible, both within the organization and by external
stakeholders.Committees typically follow structured processes and document their
deliberations, which can enhance transparency and trust in the decision-making process.
5. Skill Development and Collaboration: Participation in committees helps members develop
valuable skills such as teamwork, communication, negotiation, and conflict
resolution .Committees foster collaboration across different areas of the organization,

Limitation of Committees
1. Committees are expensive to run and operate – Several people working together on one
problem will cost the organisation move money than if one person was working on it.
2. Committees often act slowly – An individual can make a decision more quickly than a group
of people. Unless clearly guided, a committee can lead to extraneous issue which gets them
off the main track. Besides the committee procedures, all members are given a right to speak
even if they are not knowledgeable and this can be very time consuming.
3. Committees can lead to compromised decisions. A compromise is an adjustment/settlement
of a difference by mutual relinquishment (sacrifice) of references or positions.
4. Committees do not fix responsibility - With the committee system the responsibility for a
decision/recommendation that is made by the committee cannot be fixed by one individual.
Such decisions sometimes may be risky.
5. Domination by few a few aggressive or focal members often dominates committee’s
deliberation. Decisions made therefore may be merely a fulfillment of individual interest of
such members.
6. Lack of secrecy - It is difficult to maintain secrecy regarding the decisions and actions taken
by the committee. A large number of persons participate in committee.

Importance/Reasons of Committees
1. Pooling of knowledge and experience – An individual rarely has full knowledge about a
given subject. The committee system is an excellent way to bring together individuals with
different experiences and viewpoints i.e. putting the talents of experts together.
2. Committees distribute authority – Some committees are formed because the individuals
involved do not concentrate a large amount of authority on a single person. E.g. decisions
that are touching on a nation’s security
3. Committee’s faster support for decisions – Committees give employees an opportunity to
participle in decision making process and therefore helps develop support for
decisions/results that are made/arrived at.
4. Committees facilitate coordination – Participation in committee meeting promotes teamwork,
mutual understanding and cooperation among employees bring together managers from
different departments.
5. Committees can broaden the knowledge of people who participate. A committee is a useful
device for educating and training subordinate managers.
6. Participating in committee provides an opportunity to tearing through experience.
7. Improved communication committee serve as an important means of communication
between the members of the organisation
8. Information and ideas can easily be transmitted both upwards and downwards.
Guidelines for Making Committees Work Effectively
1. The purpose of the committee should be clearly stated in writing
2. Ensure that there is proper planning for the committees task
3. The size of committee should be just adequate to obtain the representativeness and
intellectual input required.
4. Select the right members. In selecting members, the following should be taken into account:
a. Members should have the required knowledge, skills and experience
b. Have interest in commit to the committees task
c. Members should be psychologically incompatible
5. There should be an odd number of committee members so as to avoid dead locking in
important issues.
6. The chairman of the committee should be able to manage committee meetings effectively.
7. The terms of reference and resources should be clearly stated and provided. The operating
procedures should be carefully defined:
8. Provide needed information and staff assistance
9. Expedite committees work i.e. set realistic deadlines for the completion of the assignment
10. Require a final report which all committee members are signatory.
11. Take action on the committees report i.e. show seriousness.

SUPERVISION
Supervision refers to the expert overseeing of workers performance to ensure that workers are
efficiently instructed, guided and assisted to ensure effective and efficient performance of their
tasks in the organization.
Functions of Supervision/supervisor
1. The supervisor guides and instructs his subordinates on work
2. He/she communicates important information to the subordinates
3. Maintains effective reporting about work performance in his/her respective section
4. Trains the workers on specific skill of work performance
5. Maintains discipline within his/her section
6. Organizes work within his/her respective sections .
Guidelines to Effective Supervision
 Maintain an appropriate span of control. The supervisor should not supervise too many
employees or very few employees
  Ensure that the supervisor posses the relevant skills.
 Motivate the supervisors well so as to ensure that they perform their duties with zeal
 Continuously upgrade the skill and knowledge of the supervisor as per as modern
technology is concern
 Manager should offer necessary support to the supervisors to ensure that they realize the
objectives of their section.
 Maintain a good system of reporting and ensure regular follow up on the reports and
especially recommendations made by supervisors
 Managers should provide all the relevant information about the organization and the
specific section that the supervisor is responsible for
Importance of Supervision
Ensures Order and Discipline:
Supervision helps ensure that employees follow organizational rules, policies, and procedures.
This maintains order and discipline within the workplace, fostering a professional and respectful
environment.
Leads to Effective and Efficient Performance:
Supervisors track the progress of tasks and projects, ensuring that work is completed efficiently
and effectively. This helps in identifying and addressing performance issues promptly.
Workers Learn New Skills:
Supervisors play a crucial role in training employees, helping them acquire new skills and
knowledge that are essential for their roles. This continuous learning enhances overall
competency and adaptability.
Improved Morale: Effective supervision involves providing constructive feedback and
recognizing employees' efforts. This support boosts morale, motivation, and job satisfaction.
Enhances Communication:Supervisors facilitate the flow of information between different
levels of the organization. They ensure that employees receive clear instructions and that
management is informed about frontline issues and suggestions.
Ensures Timely Delivery of Services and Products: Supervisors ensure that tasks and projects
are completed on time by monitoring progress and addressing any delays promptly.