Delegation & Delayering & Centralization

Question 1

Delegation

Answer 1

Passing down of authority to lower level of management. the wider the span of control the greater the degree of delegation.

Question 2

Advantages of Delegation

Answer 2

1) Motivation - places trust in employees
2) Reduces workload the manager and they can concentrate on strategies
3) Fully utilizes the skills of employees
4) Succession planning

Question 3

Disadvantages of Delegation

Answer 3

Inefficiency - miscommunication or subordinates are incompetent
Manages deligates tedious tasks which can demotivate workers

Question 4

Delegation is dependent on

Answer 4

1) Ability and experience of workers
2) Management culture
3) Control Systems available
4) Quality of managers
5) Nature of managers
6) Business size
7) Need for uniformed policies and decision making

Question 5

Factors affecting Delegation

Answer 5

1) Employees need to be empowered to make decisions
2) Employees may become resentful if only given tideous task
3) Requires planning
4) Managers must communicate task properly
5) Managers must give subordinates Authority and Responsbility
6) Delegated tasks should be given to suitable employees
7) Managers should avoid interferring with delegated tasks
8) Provision of support and resources by managers

Question 6

Centralization

Answer 6

Keeping all decision-making powers and control with senior management

Question 7

Decentralization

Answer 7

Where power and decision making is delegated from head office to lower levels

Question 8

Advantages of Centralization / Disadvanatages of Decentralization

Answer 8

1) There are fixed rules and procedures which should lead to faster decision making
2) With consistent policies there is little conflict
3) Senior managers have more personal stake in business
4) Senior managers are more experienced
5) Communication would be effective with fewer decision makes

Question 9

Disadvantages of Centralization/ Advantages of Decentralization

Answer 9

1) Allows more local decisions to be made
2) Develops junior managers
3) Workload of management is spread
4) Firm is more flexible and can react quickly to change
5) Improvements in levels of employee motivation

Question 10

Delayering

Answer 10

Removal 0f entire layers of management to create shorter organization structures

Question 11

Advantages of Delayering

Answer 11

1) Reduces businesses cost
2) Shortens the chain of command and improves communication
3) Increases span of control and delegation
4) Increases workforce motivation

Question 12

Disadvantages of Delayering

Answer 12

Reduced sense of job security leads to demotivation
Increases workload of managers who remain