Human Resource Management Unit V
Transcript of Human Resource Management Unit V
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UNIT 5
Authority Responsibility
Relationships
Meaning of authority
Authority is the official right of a person to do and make things happen
in an organization. The person vested with authority is known as the
Superior. The person on whom the authority is exercised is known as the
subordinate. Authority gives th e superior the right to give orders, make
decisions and allocate resources. Authority comes to the superior by virtue
of his official position.
Power
The term power may appear to be similar to authority. Power is the
capacity of a person to act influence others. It does not come to a person by
reason of his official position. A person get power by the virtue of his
intelligence, knowledge, skill and other personal traits.
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Distinction between authority and power
Authority power1.
2.
3.
4.
5.
6.
It is the official right of an
individual.
It accrues to a person by virtue
of his official position.
It cannot be transferred by the
process of delegation.
Authority flows downward. A
superior may delegate authority
to his subordinate.
Authority relationship can be
shows in the organization chart.
The authority of an official
increases with an elevation in
his official status.
1. it is the capacity of an individu
2. it accrues to a person by virtue
of his personal position which
is determined by his
intelligence , knowledge, skill
and other personal qualities.
3. power , being the personal
capacity of an individual.
Cannot be transferred to any
one.
4. a power may flow in all
direction. A foreman, for
example, by reason of his
skill and intelligence may
influence even the
production manager.
5. power positions cannot be
shown by means of the
organization chart.
6. the power of an individual
does not change with a
change in his official status.
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(iii) competence theory.
Each of these theories has been explained below:
Formal authority theory
This theory states that authority flows down ward in an organization
through the process of delegation . in a joint stock company , for example
the ultimate authority lies with the shareholders. It is only the shareholders
who entrust the management of the company to the board of directors . the
board ,in turn, delegates the authority to the managing director who
delegates it to the department managers. Every individuals derives his
authority by reason of his formal position in the organization. Such
authority is, therefore, known as formal authority.
Acceptance theory
The acceptance theory was developed by a management expert called
chester barnard. According to this theory the formal authority has
significance only if it is accepted by the subordinates. In other words the
effectiveness of formal authority depends on the willingness of the
subordinate to accept it. A subordinate will accept the exercise of authority
if the advantages accruing to him from accepting it exceed the advantage
accruing to him from accepting it exceed the advantages accruing from notaccepting.
A subordinate will accept an order if it is consistent with the
organizational interest as well as his personal interest and he is able to
comply with it both physically and mentally.
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Competence theory
This theory states that a person derives authority out of his personal
qualities. Formal authority accrues to a person by virtue of his official
position in the organization. Personal authority on the other hand, is
derived by a person by reason of his experience, intelligence, technical
knowledge and skill and soon. It is not uncommon to find a superior officer
evolving an important decision after consulting an experienced and
competent subordinate of his.
Responsibility
responsibility is the duty or obligation of a subordinate, to whom some
work has been assigned by a superior. to perform the task required.
Responsibility can be given to human beings only. The existence of
superior- subordinate relationship between the person concerned is an
important condition for the assignment of responsibility. A production
manager ,for example may assign some responsibility to a foreman. This is
able to do by reason of the official authority he has to get things done by
the foreman. The foreman ,in turn , may assign some work to a worker as he
has the authority to do so.
Responsibility may be a continuing obligation or conformed to a
specific assignment. For example, the responsibility of a foreman to
the production manager in the manufacturing concern the continuing one.
On the other hand, if the production manager assigns the job of installing a
plant to a technician, the responsibility of the latter to the former is
confined to that work alone.
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The responsibility of a person may be defined in terms of function or
targets as the case may be. The responsibility of an office manager or a legal
officer , for example, is in terms of functions. The responsibility of a
factory worker, on the other hand, is in terms of targets (output to be
produced).
A superior who assigns some responsibility to his subordinate should
also give the letter the requisite authority to perform the task. For example,
a salesman who has been given a certain sales target to be attained within a
specific period should be given the authority to draw the necessary cash
from the finance department to meet out the expenses in connection with
his travel, stay and food. If the company gives him a two wheeler he needs
to be given the cash necessary to meet out the fuel and maintenance
expenses. He must also have access to the telephone. The present-day
salesmen are given cell-phones or pagers.
It is clear from the above example that it is not possible for a
subordinate to perform the work assigned unless he is given the necessary
authority. It is also important that authority must match responsibility and
vice versa. If authority exceed responsibility, there may be misuse. Of
authority. On the other hand, if responsibility exceeds authority, the
subordinate cannot perform the task assigned successfully. Hence, the need
for parity (equality) between the two.
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Accountability
Accountability means , answerability . a subordinate, to whom some
responsibility has been given by a superior. Becomes answerable to the
latter for the performance of the work. The subordinate remains liable
whether or not he has completed the task. If he has not completed the work
assigned he must offer proper explanation for it. If the explanation gives is
not acceptable to the superior, he can take suitable action.
Delegation of authority
Meaning
In any organization , an individual alone cannot perform all the tasks.
He has , therefore to assign work to different person who are engaged for
the purpose.
For the example the sales manager of a concern cannot look after sales in
different towns and villages himself. Sales representative are appointed to
assist him in the work. The sales manager will depute each salesman to aparticular place. Assignment of work or responsibility alone is not enough
to make the salesmen perform the task. They need to be given the necessary
authority to carry out their responsibility. Delegation of authority is only
the process of transfer of authority by a superior to his subordinate to
enable the latter to perform the task assigned.
Definition of delegation of authority
1. the process of delegation involves the determination of result
expected, the assignment of task the delegation of authority for the
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accomplishment of this tasks and the exaction of responsibility for
their accomplishment konntz and ODonnel.
2. delegation is the process a manager follows in dividing the work
assigned to him so that he perform that part which only hebecause of
his unique organizational placement can perform effectively, and so
that he can get other to help him with what remains allen.
3. delegation is the passing on to other of a share in the four elements of
the management process that is to say in the command of the
activities of the people and in the responsibility for the decision that
will determine the planning, co-ordination and control of the
activities of such other people E.F.L.Brech.
4. delegation of authority merely means the granting of authority to to
subordinates to operate with in prescribed limits Haimann
5. delegation means assigning work to others and giving them authority
to do it F.G.More.
it becomes clear from the above definitions that delegation is the process
of assignment of work and responsibility and transfer of the necessary
authority by a superior to his subordinates.
The following are some of the important definition of delegation of
authority:
The process or the elements of delegation
The following are the different stages involved in the process of
delegation:
(i) assignment of duties
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(ii) delegation of authority and
(iii) creation of accountability
each of these stage has been explained below:
Assignment of duties
The different departments or divisions in an enterprise, namely
production, marketing, personal, finance etc., are headed by the
respective departmental managers. A number of subordinates work in
each of these department s. every departmental manager assigns work to
each of the subordinate working under him. While assigning work or
duty, the superior/manager shall take into account the capabilities of hissubordinates. Al though the departmental managers assign work to their
subordinates , for the due performance of the work they (the managers)
remain liable to the general manager (or the managing director or the
chief executive as the case may be ) of the concern.
Delegation of authority
Assignment of duty alone is not enough to get the work done by the
subordinate . the subordinate need to be given the requisite authority to
carry out the responsibility. Delegation of authority will enable the
subordinate to have access to the resources of the enterprise, namely,
men, machines, materials ,and money. Further, authority also enablesthem to meet customers and enter into contracts on behalf of the concern.
Creation of accountability
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The subordinate, who has been assigned some work and given the
necessary authority, remains liable or answerable to his superior for the
due performance of the work. This is necessary in view of the following
reasons:
(i) the superior remains liable , on the performance of his
subordinates ,to his own superior.
(ii) The superior has to be ensure that there has been no misuse of
authority by his subordinates.
(iii) The overall project of the enterprise has to be attained and for
this everyone concerned with the enterprise has to put in efforts.
Advantages /benefit / merits / important / of delegation
The advantages of delegation of authority in an organization may be
started as follows:
1. vital for every organization: delegation of authority is indispensable
for every organization . on individual in any organization , can
perform all the task himself. He need the support of a term of
individual. The work therefore has to be shared by different person
working in the department. The task of sharing the work and
accomplishing the same is done through the process of delegation.
2. relief to managers: the manager of each department is able to
divided the entire work of his department among his subordinates.
After assigning work every subordinate staff, the manager also
gives him the requisite authority. The manager ,thus is able to
concentrate on more important duties .the routine work is being
attend by his subordinates.
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3. specialization: the very division of the work of a business enterprise
in to production , marketing , finance , personnel etc ., is to drive
the benefits of specialization. Each of these division is looked after
by a manager. Each such manager will work under the control of the
general manager of the concern. With in each division there is
further scope for deriving the benefits of specialization. For
example in the marketing department , different individuals may
specialize in different marketing activities like advertising ,sales ,
promotion , packing ,gathering market news and so on. Each such
individuals will work under the control of the marketing manager.
4. prompt decisions: delegation of authority to subordinates enables
them to
make decision with in scope of their authority .for example, a
foreman, has the authority to make certain decisions with in his
level of authority . it therefore not necessary to refer every matter
to the superior and to await his decision.
5. improvement of job satisfaction assignment of work and
responsibility to subordinates gives them the feeling that they are
being recognized. This word certainly motivate them to put in
greater efforts in order to show good results. A subordinate showing
good results should definitely be rewarded. The reward may come to
him in the form of tangible or intangible benefits. Such a person
therefore, is bound to have a higher level of job satisfaction.
6. scope for business expansion: as the subordinates of the
organization are well versed in performing their task and also have
the expertise in decision making the business can successfully
undertake expansion or diversification activities.
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Types of Delegation
Delegation may de of the following types:
(i) general delegation
(ii) specific delegation
(iii) written delegation
(iv) unwritten delegation,
(v) formal delegation
(vi) informal delegation
(vii) upward delegation and
(viii) sideward delegation.
let us about each one now.General delegation: in the case of general delegation of authority , the
subordinate has the authority to perform any function that may be
necessary for the accomplishment of the overall enterprise goal. A
salesman who has been given general authority, for example, may
supervise production or packing in order to ensure prompt dispatch of
the goods he has agreed to supply.
Specific delegation : in the case , the subordinate has the authority to
perform only a specific function. For example may have the authority to
perform only a specific function. A foreman, for example, may have the
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authority only to supervise the workers and make a report to the
production manager at regular intervals.
Written delegation : delegation made by written orders and
instruc tions is what is known as written delegation . a power of attorney
may be cited as an example.
Unwritten delegation : here, delegation is based on customs or
conventions.
Formal delegation : in the case of formal delegation, authority is
delegated as laid down in the organization structure. The personal
manager, for example has the authority to advertise vacancies in news
papers and solicit applications from eligible candidates if the organization
has the policy to recruit people from outside source.
Informal delegation : in the case of informal delegation , a
subordinate performs a certain function although he is not officially
bound to do it. This he does because of the personal relationship he has
with the superior who has assigned the work to him. A sales man for
example may buy certain stationary items needed by the office, as a favour
, in view of his personal relationship with the office manager.
Upward delegation: delegation is usually a downward process i.e., only a
superior delegates authority to his subordinates. Upward delegation takes
place when a subordinate assigns some work to his superior. Such a
delegation is very rare. Sometimes, a superior may perform the work of a
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subordinate if the latter has any difficulty in doing it. This he does only to
make him understand the methodology of work.
Sideward delegation : sideward delegation takes place when a subordinate
assign certain work to another subordinate working at the same level. For
example, one account may assign his work to another. In the same way one
salesman may help another. Employees operating at the same level may
help one another.
Principal of delegation
The following are the important principles of delegation of authority:
1. delegation to go by expected results : before delegation of authority to
his subordinates, the superior must be clear about the task he wants
them perform so as to realize the expected results. The extant of
authority depends upon the nature and quantum of work to be done. If
the tasks to be perform by the subordinate are not properly determined
by the superior, he may not be able to decide on the authority required.
2. responsibility is absolute: a superior can delegate only authority and
not responsibility. For the performance of work by his subordinates the
superior is responsible to his own superior. For example, the sales
manager of a concern is responsible for the performance of the
salesman working under him, to the general manager. It, therefore,
goes without saying that the superior has to constantly monitor the
performance of his subordinates.
3. Authority to match responsibility: There should always be parity
between authority and responsibility, i.e., one must be equal to the
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other. If authority given to a subordinate is more than his
responsibility, there may be a tendency tom misuse the authority. On
the other hand, if responsibility is more than the authority, the
subordinate will not be able to perform the task. It is, therefore,
necessary that both should be equal.
4. Unity of command: This principle says that a subordinate should be
assigned duty or responsibility by one superior only. He is also
accountable to that superior alone. For example, a foreman should
work as per the orders received from the production manager and
should also report to him only. A salesman has to carry out the orders
of the sales manager under whom he works. If two managers command
a su bordinate, he wont know whose orders he should carry out.
5. Clarification of the limits of authority: The subordinate should know
the limits of his authority. While delegating authority to his
subordinate, the superior must tell him what he could and could not
do. For example, a salesman, who has to travel to different places, may
have the authority to stay and have food in a hotel at the cost of his
employer. But he would be informed of the maximum amount allowed
per day.
Obstacles to delegation
The problem faced in delegation of authority may be discussed under
the following heads:
(i) Problems of superior,
(ii) Problems of subordinate, and
(iii) Organizational problems
We shall now discuss each of the above in detail.
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Problem of superior
A superior may not come forward to delegate the required
authority to his subordinate in view of the following reasons:
1. Desire for domination: Some managers have desire for domination.
They have a feeling that delegation of authority to subordinate would
result in loss of control. Such managers want their subordinates to come
to them always for getting approval.
2. Superiority complex: Some managers have a feeling that they only
are capable of doing the work. They think that the subordinate cannot
perform as effectively as they can. As a result, they do not come forward
to delegate.
3. Lack of confidence in subordinates: Sometimes, a manager may
think that his subordinate may take a bad decision and as a result his
department may have to suffer. Because of such a fear he may show
hesitation.
4. Personal incompetence: A superior may avoid delegation of
authority to his subordinates, if he himself is incompetent, i.e., the
superior himself may be basically poor in planning and execution of work.
When such a superior delegates authority to his subordinates, it would
only expose his own week points.
5. Fear that the subordinates might outshine: Some superior also have
the fear that some of their subordinates, who are really efficient and
capable, might outperform them. As a result, the superior would lose
their importance.
Problems of subordinates
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2. Multiplicity of command: delegation, to be effective, must conform to
the principle of unity of command. If too many superior command a
subordinate, there will be confusion. The subordinate, in such an
organization, would only struggle.
3. Lack of able managers: The organization must have able managers.
Only such managers will be able to assign the right type of work to the
right persons. If only the organization can provide a good pay package
and the right kind of environment, it can attract capable managers.
4. Absence of proper control system: The success of delegation can be
measured only if the organizational has a proper control system. The
absence of such a system would only make delegation a futile exercise.
5. An environment of mutual distrust: The organizational must ensure
mutual trust and confidence between the superior and the subordinate
employed in it. Lack of such an environment would not allow any scope
for delegation of authority.
How to make delegation effective
The following are some of the measures that can be taken to make
delegation of authority effective:
1. Determination of definite goal: Delegation is required only for the
effective attainment of the enterprise goal. It is, therefore, important to
state the goal in clear and precise terms. If the goal is imprecise and vague,
the subordinate may hesitate to accept authority.
2. Authority should match responsibility: As mentioned earlier, the
authority given to a subordinate should neither be more nor less than his
responsibility. If it is more, the tendency will be misuse it and if it is less,
the subordinate will not be able to carry out his responsibility. Therefore,
both authority and responsibility should be equal.
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3. Unity of command: For delegation to be effective, it is important that
a subordinate get command from one superior only and is accountable to
such a superior alone.
4. Proper motivation: It is also important that the subordinate are
properly motivated to accept authority and prove their worth to the
organization. Motivation of subordinate may be done by offering
incentives-both monetary and non-m onetary. A subordinate who has
shown good results may also be given greater decision-making authority.
5. Appropriate work environment: The work environment should be
such that the subordinate are able to work without any fear. The superior
must be easily approachable. The resources needed to perform the various
tasks should also be easily accessible.
6. Proper communication: All efforts must be made to develop proper
communication channels within the organization. Informal
communication(ignoring the hierarchy) may be used to supplement or as a
substitute for formal communication wherever necessary.
7. Proper training of subordinates: The subordinates may be given
proper training to enable them to undertake any assignment. Training
helps to develop the capabilities of subordinates and thereby gives them
the courage to accept delegation of authority.
8. Proper control mechanism: Control mechanism is required to review
the progress of work done by the subordinates. The control system should
help to measure deviations from the standards without interfering in the
daily activities of the subordinates.
DECENTRALISATION
Concentration of decision-making authority in the hands of a few at the
top level is known as centralization. In decentralization, there is dispersal
of decision- making authority at different levels of the organization
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Who has delegated authority overall control. The superior
at
To his subordinate exercises each level exercises control
Control over him. Over his immediate
subordinate.
Decentralization does not require the location the departments of the
enterprise in different places. In other words, the geographical location of the
departments or division of the enterprise in different areas does not
determine decentralization. Even if all the division are placed under one roof,
the enterprise may be under the system of decentralization . Dispersal of
authority alone is the key factor in decentralization.
The distinction between a centralized organization and a decentralized
one may also be explained by means of diagrams:
General manager
Production manager Marketing manager
Advertising
Target attainment
Plant maintenance Controlling
Quality control Salesmen
Market research
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Supervision 1 Supervision 2 Sales officer 1 Sales officer
2
If the above organization follows a decentralized pattern, the diagram
with appear as follows:
General Manager
Production manager Marketing manager
Supervisor 1 Supervisor 2 Sales officer 1 Sales officer 2
Target attainment Target attainment Advertising Advertising
Plant maintenance Plant maintenance Controlling Controlling
Salesmen Sales men
Quality control Quality control market research market
Research
Factors determining the degree of decentralization
1. Attitude of the top management: If top management wants all the
decision-making authority to be confined to itself and to a few key
executives, it may prefer centralization. On the other hands, if the top
management wants to have only overall control over the organization
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approach their superior only if their advice is needed on a very
important issue.
2. Prompt decisions: As the subordinate operating at every level have
authority to make decisions on matters that are within their control,
there may not be delay in evolving decisions. For example, the
decision to accommodate a worker in a particular shift may be made by
the foreman himself in a decentralized organization. The consent of
the production manager may not be required.
3. Motivation of subordinate: Since the subordinate have been given the
authority to make decision pertaining to the work done by them they
feel motivated. Such a motivated person would certainly perform his
duties with more interest and commitment.
4. Progress due to autonomy: Under decentralization, each departments
or division enjoys autonomy as there is no direct interference in its
decision-making authority by the top managerial personnel. Autonomy
gives each department the freedom to act. This would certainly
encourage healthy competition among the various department of the
enterprise and ensure its growth.
5. Effective communication: Under centralization, the scope for
communication is limited. This is because only a few executives at the
top have the decision- making authority. The subordinate have to
simply carry out the orders of such executives. But in a decentralized
enterprise, subordinate at different levels of the organizational
hierarchy have the decision-making authority. This results in effective
communication throughout the organization.
Disadvantages of Decentralization :
The following are some of the limitations of decentralization:
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