Week 7 Organizing & Delegation
Week 7 Organizing & Delegation
(B6-BM2-13)
ORGANIZING AND DELEGATION,
CONT’
Objectives
By the end of the session, students should
be able to:
• Define authority
• Outline the types of authority
• Describe job design methods
• Discuss the concept of delegation, benefits,
limitations, and have an understanding of the
delegation process.
ORGANIZING AND DELEGATION
Types of Authority
1.Formal authority: Formal authority is shown by the
organizational chart which refers to specific
relationships among employees.
2. Line and staff authority: Line authority entails the
responsibility to make decisions and issue orders
down the chain of command, for example a Production
Manager is a line manager in a firm. Staff authority is
mainly concerned with having the responsibility to
ORGANIZING AND DELEGATION
Advantages of decentralization
• Reduction of top management workload, hence they
can concentrate on important issues
• Quick decision making
• Motivates lower level managers
• Fosters a competitive climate in the organization
Disadvantages of decentralization
• Loss of control of the firm’s sub-units
• Duplication of tasks
• More expensive, requires training
ORGANIZING AND
DELEGATION
JOB DESIGN
• Job design is the process of combining the tasks that
each employee is responsible for, which is an
important element of organizing since it affects
productivity. Elements of job design are:
DELEGATION
• Managers get their work done through other people.
Delegation is the process through which managers
assign a portion of their workload to others.
• Even though managers delegate authority, they still
remain accountable for the completion of the job,
hence they are accountable for the actions of their
subordinates and their own actions. They are still
accountable to their superiors in those two respects.
ORGANIZING AND DELEGATION