Centralization and Decentralization
April 3, 2025
Centralization and Decentralization
Centralization is said to be a process where the concentration of decision making is in a few hands. All the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen, “Centralization” is the systematic and consistent reservation of…
Organizing Function of Management
Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern.…
Delegation of Authority – Meaning, Elements and its Process
A manager alone cannot perform all the tasks assigned to him. In order to meet the targets, the manager should delegate authority. Delegation of Authority means division of authority and powers downwards to the subordinate. Delegation is about entrusting someone else to do parts of your job. Delegation of authority can be defined as subdivision…
Line and staff organization is a modification of line organization and it is more complex than line organization. According to this administrative organization, specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority. The power of command always remains with the line executives and staff supervisors guide, advice and council the line executives. Personal Secretary to the Managing Director is a staff official.
| MANAGING DIRECTOR | ||
| ↓ | ↓ | ↓ |
| Production Manager | Marketing Manager | Finance Manager |
| ↓ | ↓ | ↓ |
| Plant Supervisor | Market Supervisor | Chief Assisstant |
| ↓ | ↓ | ↓ |
| Foreman | Salesman | Accountant |
The line executive can concentrate on the execution of plans and they get relieved of dividing their attention to many areas.
The planning and investigation which is related to different matters can be done by the staff specialist and line officers can concentrate on execution of plans.
Line executives can give due concentration to their decision making. This in itself is a training ground for them.
At times the staff specialist also provide wrong decisions which the line executive have to consider. This can affect the efficient running of the enterprise.
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