IGNOU : M.COM : MCO 1 : UNIT 3 : Q - 4. Write notes on - i) Departmentalisation ii) Delegation of authority

 Ans. i) Departmentalisation

The division of labour divides the jobs into smaller activities. In order to coordinate these activities, they are grouped together. The basis by which these activities are grouped together are known as departmentalisation.

 

It may be defined as the process of forming departments or grouping activities of an organisation into a number of separate units for the purpose of efficient functioning. This term vary a great deal between different organisations. For example, in business undertaking, terms are division, department and section; in Government these are called branch, department and section; in military, regiment, batallion groups and company.

 

The impact of departmentation is a delineation of executive responsibilities and a grouping of operating activities. Every level in the hierarchy below the apex is departmentalised and each succeeding lower level involves further departmental differentiation.

 

The major benefits of departmentalisation are :

 Specialisation : Departmentation leads to the benefits of specialisation as various organisational activities are grouped according to their relation with the specific functions or objectives. Every departmental manager specialises in the tasks assigned to him.

 

Administrative control : Departmentation helps in effective managerial control because the standards of performance for each and every department can be laid down precisely. Every department has a specific objective. This also facilitates keeping expenditure within limits.

 

Fixation of responsibility : Since organisation work is divided into manageable units, and authority and responsibility are precisely defined, it is easier to fix the accountability of different managers for the performance of various tasks.

 

Freedom or autonomy : The departments created through departmentation are semi-autonomous units. Their heads are given a sufficient degree of authority to run their departments. This increases the efficiency of the departments.

 

Development of managers : Departmentation helps in the development of managerial personnel by providing them opportunities to take independent decisions and initiative. The executives can develop themselves for promotion to higher jobs.

 

 

 

ii}  Delegation of Authority

 

Delegation is the process that a manager follows in dividing the work assigned to him so that he performs that part, which because of his position he can perform effectively. Delegation is legitimate authorisation to a manager or employee to act in specified ways. It enables him to function independently without reference to the supervisor but within the limits set by the supervisor and the normal framework of organisational objectives, policies, rules and procedures. Thus, delegation involves : a) entrustment of work to another for performance, b) grant of power, right or authority to be exercised to perform the work, c) creation of an obligation on the part of the person accepting delegation.

 

Delegation is necessary because it is physically impossible for a single man to look after the affairs of a large organisation. The success of a manager lies in his ability to multiply himself through other people. The organisations of today are not only large but also complex in character. No manager can claim to have all the skills and expertise to perform all the diverse kinds of jobs. Again, large scale business activities are not confined to one place. It may have several branches and units at several places. Delegation becomes a necessity for running these branches.

 

An organisation is a continuity. Managers may go and come but the organisation continues. Delegation provides continuity of operations in the organisation. The process of delegation helps managerial development in an organisation.

 

Thus, delegations is important for any organisation because it reduces the burden of the managers and leaves him free to look after important matters of the organisation. It is a method by which subordinates can be developed and trained to take up higher responsibilities. It provides continuity to the organisation and creates a healthy organisational climate by creating better understanding among the employees.

 

The major benefits of delegation are :

 

• Delegation leads to professionalism.

• Managerial decisions may involve creativeness and innovativeness.

• The competitive environment may be created in the organisation.

• The mangers may take quick decisions. The limitations of delegation of authority are :

• The managers may resist to delegate authority.

• The managers may require training for taking decisions and the costs of training may be higher.

• Every person may not be able to take high level of decision in the effective way.

• The administrative costs may also increase. Despite these limitations, delegation of authority enhances efficiency in the organisation.