Discuss the principles of organisation
(a) Principles of Organisation
The principles of a healthy organisation are discussed below:
1. Classification of Activities: Functions and activities should be so classified so as to avoid confusion, duplication and delay. This would facilitate better consultation, action and co-ordination. A proper balance must be maintained between various units of the organisation.
2. Regularity and growth: A sound organisation must have provision for regular existence of the organisation through reorganisation with the change in time. Besides stability, it must also bring about continuous growth and expansion of the business. It must be flexible and capable of adapting itself to changing circumstances. The character of organisation and the leadership of the business must be dynamic.
3. Organisation Structure: A good organisational structure must provide for well defined functions and must assign definite authority and responsibility for every separate function. Authority must correspond with the responsibility. A formal line of authority must follow from top to bottom and the seniors must be held absolutely responsible for the acts of the subordinate’s.
4. Span of Control: The number of subordinates under the of one superior must be reasonable. It should neither be too large as to make the management unwieldy nor too small to enable the fuller utilization of the manager’s ability to control. Ordinarily, one superior cannot supervise more than five or six subordinates. Superior must be held absolutely responsible for the performance of his subordinates.
5. Effectiveness : Not only that a good organisation should spell out the objectives in a very clear cut manner but that it must also ensure attainment of all the objectives of a business with minimum of effort and wastes. Every organisation must exist for a particular purpose.
6. Communication: Good organisation must provide for easy, smooth and quick flow of information both ways from top to bottom and vice-versa. Objectives, policies and programme of the business must be made clear to the workers and they should be encouraged to convey their reactions and grievances and also make suggestions. Effective communication will remove all uncertainties, misunderstandings and ensure co-ordinated effort of all those engaged in the enterprise.
7. Individual satisfaction: Co-operation and efficiency of workers can not be secured unless an attempt is made to satisfy their individual as well as group objectives. Besides satisfying the biological needs of the workers, a good organisation must also provide for their psychological satisfaction. It will be very much advisable for this purpose to develop some informal relationship with them along with formal structure.
(b) Meaning of Delegation of Authority
Louis A. Allen has defined delegation of authority in the following words, “Delegation is the dynamics of management; it is the process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organisational placement, can perform and so that he can effectively get others to help him with what remains.”
Delegation of authority means the assignment of work to others and granting them the requisite authority to accomplish the job assigned. It enables the managers to distribute their load of work to others and concentrate on more important functions which they can perform better because of their position in the organisation. Delegation is the ability of a manager to share his burden with others. For this, firstly, he must entrust to others the performance of a part of the work he would otherwise have to do himself; secondly, he must provide a means of checking up the work that is done for him to ensure that it is done as he wishes.
Principles of Delegation
Delegation of authority can be made effective by adhering to the principles of delegation which are given below:
1. Proper Planning: Before delegating, an executive should define clearly and precisely the objectives to be achieved by the delegation of authority and responsibility. The jobs should be designed clearly to achieve these objectives. The subordinates must understand clearly what activities they must undertake and what results they must show. This will enable them to know by what standards their performance will be judged.
2. Parity of Authority and Responsibility: Authority and responsibility should bear logical relation to each other. So only that much authority should be granted which is sufficient to fulfill the responsibility. Responsibility is the work assigned to a position and is related to objectives, whereas authority is related to the rights given to perform the work assigned. Authority should be delegated to commensurate with responsibility. For instance, if a manager tries to hold subordinates accountable for duties for which they do not have the requisite authority, it will be unfair. It is also not proper if the subordinates are given sufficient authority, but are not held accountable for its proper use.
3. Clarification of Limits of Authority: Limits of authority must be clarified to the subordinates so that they may not assume more authority than desired. Clear limits of authority will allow subordinates to exercise initiative, develop themselves through freedom of action and to know their area of operation. This will also avoid misuse of authority.
4. Effective Communication: There should be free flow of information and ideas between a superior and his subordinates. Two way communication system is essential so that the superior can give clear and precise instructions and the subordinate can seek the necessary clarifications and guidance. Accurate and timely information should be made available to the executives to enable them to remove obstacles in effectively carrying out the responsibilities by the subordinates.
5. Absoluteness of Accountability: Since accountability cannot be delegated, no superior can escape accountability for the activities of his subordinates, for it is the superior who has delegated authority and assigned duties. The superior cannot pass on his obligation to account for his boss to the subordinates alongwith his authority. Likewise, the accountability of the subordinates to their superior for the performance of assigned tasks is absolute.
6. Unity of Command: This principle states that accountability. is unitary. Each person should be accountable only to one superior for delegated authority as he cannot serve two masters. If a person reports to two superiors for the same duty, confusion and friction will result. He will find himself frequently receiving conflicting instructions. When this is the case, his only hope is either to get two bosses or to run the risk of displeasing either or both. Therefore, as for as possible, dual subordination should be avoided.
