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Meaning And Features Of Authority

Meaning Of Authority

Authority is a legal power to command. It provides right to make decision. It is a freedom provided by the organization to command, guide, and to influence subordinates to achieve specific objectives of the organization. 
Therefore, authority is a legal right of superior of the organization to handle subordinates. It includes commanding, guiding, directing and influencing subordinates along with responsibility.

Features Of Authority

Followings are the notable characteristics of authority:

1. Legal Power
 Authority is a legal power of superior which helps him to influence and guide others.

2. Right To Make Decision
Authority ensures the right to make decision in favor of the organization.

3. Right To Command
Authority is a legal power to command subordinate level employees.

4. Right To Control
Authority is a right to control subordinates and other organizational functions in order to get better result.

5. Dominance
Authority is dominance by nature because it is a command of leader to the subordinates.

6. Accountability 
The person or superior possessing authority is also responsible to higher level authority. So, he should be accountable for his work.

7. Basis Of Getting Things Done
Authority is right to motivate, affect and influence people and their performance in order to achieve better result. So, it is a basis of getting things done.

8. Can Be Added Or Reduced
Authority can be added or reduced as per the needs and also can be fully withdrawn or delegated to others.


Advantages And Disadvantages Of Time Based Departmentation

Advantages Of Time Based Departmentation

Followings are the main benefits of time based departmentation:

1. Time based departmentation follows division of work.

2. This type of departmentation maintains good coordination by grouping employees into different shifts.

3. Responsibility and authority is delegated to the shift head or in-charge. 

4. Time based departmentation make maximum utilization of resources.

5. It follows the principle of specialization.

6. There is no work burden for managers and employees.

Disadvantages Of Time Based Departmentation.

Followings are the main drawbacks of time based departmentation:

1. This is costly method of departmentation.

2. Entire shift may face problem due to the problem of one shift.

3. There is very difficult to maintain effective coordination and proper communication among different shift.

4. Time based departmentation faces the problem of conflict between managers and employees of different shifts.

5. This type of departmentation is not suitable for all types of organization, especially to small and medium sized firms.

Advantages And Disadvantages Of Departmentation By Process

Advantages Of Process Departmentation 

Followings are the main benefits of process departmentation:

1. In process departmentation, there is proper division of work. So, it is effective form of departmentation.

2. Top level management is oriented towards the best result. So, there is proper operation.

3. Departmentation by process follows the principles of specialization.

4. There is clear authority and responsibility in each department.

5. This type of departmentation facilitates proper and optimum use of resources.

6. Because of specialization and division of work production process is effective in process departmentation.

Disadvantages Of Process Departmentation

Followings are the major drawbacks of process departmentation:

1. There is high chance of conflict in process departmentation.. 

2. This type of departmentation is only suitable for large manufacturing firms.

3. It is difficult to maintain effective coordination.

4. Whole process may be affected due to problem in one process.

5. It is hard to maintain unity of command.

6. Departmentation by process is very costly.

Advantages And Disadvantages Of Departmentation By Territory

Advantages Of Departmentation By Territory

Territory-based departmentation has the following advantages:

1. Territory-based departmentation helps to expand business operation into different geographical location.

2. The regional staffs get opportunity to improve their skills and experience.

3. Local people can get job opportunity by departmentation by territory.

4. In this type of organization, coordination can be established between the organization, employees and locals.

5. Territory-based departmentation helps to fulfill local demand.

6. There is lower cost of production in this type of departmentation.

7. Departmentation by territory adopt the environmental changes.

8. This type of departmentation facilitates face-to-face communication which helps to be familiar with local people.

Disadvantages Of Departmentation By Territory

Territory-based departmentation suffers from the following drawbacks:

1. Departmentation by territory is more costly than other forms if departmentation. Although the cost of production is low, administrative expenses and other expenses are very high.

2. It needs more people with managerial skills.

3. There is a problem of effective control in this type of departmentation.

4.There may exists the chance of integration of different regional offices in this type of departmentation.

5. This is complex form of departmentation.

6. Territory-based departmentation suffers from the possibility of duplication

Advantages And Disadvantages Of Customer Departmentation

Advantages Of Departmentation By Customers

Followings are the major benefits of customer departmentation:

1. This type of departmentation emphasis on customer satisfaction by providing  better products and services.

2. Product departmentation identifies key customers, their needs and tastes and try to satisfy them.

3. Product departmentation ensures expertness and specialization to benefit customers.

4. Product departmentation adopts different environmental changes according to the situation.

5. Managers are more responsible of each departments and products.

6. Customers departmentation create goodwill and good image in front of the clients.

Disadvantages Of Departmentation By Customers

Followings are the major drawbacks for customer departmentation:

1. It is very difficult for top management to maintain proper coordination between different departments and functional areas.

2. In customer departmentation, there is high chance of duplication of different activities.

3. There is a chance of staffs being idle in this type of departmentation. 

4. Due to over focus on customers satisfaction, there is possibility of wastage of other resources of organization.

Advantages And Disadvantages Of Departmentation By Product And Services

Advantages Of Product Departmentation

Major benefits of departmentation by product and services are as follows:

1. Product departmentation follow the principle of specialization in a product or services. It ensures better quality of the product.

2. Because of specialization it ensures optimum utilization of human and non human resources.

3. Large manufacturing firms can be benefited from product departmentation.

4. Departmentation by product and service helps in evaluating the performance of each department. This helps to control organization easily.

5. Top level manager has enough time for planning and decision making because all departments are handled by departmental managers.

6. Production departmentation is flexible in nature. It is easy to add new product line if needed. 

7. Product departmentation helps to improve skill and talent of managers.

Disadvantages Of Product Departmentation

Major drawbacks of departmentation by products and services are as follows:

1. There is high chance of conflict between different departments.

2. Due to low demand, resources may not be fully utilized.

3. Top level management has to face difficulty to control production division.

4. Departmental managers and supervisors may ignore overall organizational objectives because they focus only on their department.

5. It is very costly and not suitable for small and medium sized firms

Advantages And Disadvantages Of Functional Departmentation

Advantages Of Functional Departmentation

Following are the major benefits of advantages of departmentation by function:

1. Simplicity
Functional departmentation is simple and common form of departmentation. It is very easy to establish and operate.

2. Specialization
Functional departmentation follows the principle of specialization. Special knowledge and skill helps high level operation of the organizational functions.

3. Better Coordination
Functional departmentation facilitates better coordination among departments, different functions and employees,

4. Optimum Utilization Of Resources
Functional departmentation focuses on the optimum utilization of both human and non-human resources. This ensures positive outcome to the organization.

Disadvantages Of Functional Organization

Functional Departmentation suffers from the following disadvantages:

1. Conflict
In functional departmentation, there is very high chance of conflict among departments and other functional areas.

2. Slow Decision Making
Because of numbers of specialists and experts and many departments, decision making process is slow in this type of departmentation.

3. High Supervision Cost
There are many supervisors in this type of organization. So, supervision costs is very high.

4. Lack Of Innovation And Creativity
Functional departmentation emphasis on high level speed production by the help pf specialists and skilled employees. It emphasis on mass production and expansion. But it ignores innovation and creativity.

5. Difficult To Monitor
It is very difficult to monitor performance in this type of departmentation.


Meaning And Importance Of Departmentation

Departmentation

Departmentation means grouping and dividing similar organizational activities into smaller units on logical basis. It is a process of identifying, analyzing, arranging and grouping the jobs into small and flexible units for different departments and sections. 

Departmentation helps to increase the efficiency of the organization. Division of work helps to manage and complete work effectively. It helps to control overall organizational activities easily.

Therefore, departmentation is very useful to promote efficiency, maintain coordination, increase responsibility and control overall activities of the firm.

Importance And Advantages Of Departmentation
Benefits and importance of departmentation are as follows:

1. Systematic Division Of Work

Departmentation simplifies the job with systematic division of work. So, it ensures effective functioning of the organization.

2. Specialization

Departmentation ensures specialization of because of work division.

3. Better Control

Departmentation ensures administrative, financial ad managerial control by dividing jobs and personnel in systematic manner.

4. Efficiency

Departmentation helps to boost organization's efficiency because of division of work, specialization and effective control.

5. Management Development

Departmentation simplifies managerial tasks. It helps managers to perform effectively.

6. Chance Of Expansion

Because of specialization, work division, effective control and efficiency, organizational functions can be performed with high level of speed. So, there is a huge scope of mass production and expansion of business.




Difference Between Line Organization And Functional Organization

Major differences between line organization structure and functional organization structure are as follows:

1. Nature

Line Organizational Structure: It is simple and very easy to operate.
Functional Organizational Structure: It is complex type of organizational structure.

2. Specialization

Line Organizational Structure: This type of organization is not specialized or follows low level of specialization.
Functional Organizational Structure: It is fully specialized form of organization. It hires specialists and experts for business operation.

3. Unity Of Command
Line Organizational Structure: Unity of command is strictly followed in line organization.
Functional Organizational Structure: Unity of command is not properly followed in functional organization.

4. Discipline

Line Organizational Structure: Discipline is strictly maintained in this type of organization.
Functional Organizational Structure: There is a loose discipline or lack of discipline in functional organizational structure.

5. Authority

Line Organizational Structure: This type of organization follows scalar chain system or vertical authority.
Functional Organizational Structure: It follows functional or diagonal authority system.


6. Economy

Line Organizational Structure: It is very economical form of organizational structure.
Functional Organizational Structure: This type of organization is very costly due to specialists and experts.

7. Work Load For Top Management

Line Organizational Structure: Top level management has more work load due to single authority and responsibility. 
Functional Organizational Structure: Top level does not have more work load because responsibility and authority is divided among department heads and specialists.

8. Coordination

Line Organizational Structure: There is possibility of effective coordination because of only one superior.
Functional Organizational Structure: There may be a problem of coordination due to many supervisors, experts and specialists.

9. Decision Making

Line Organizational Structure: Decisions are taken by top level management or line manager.
Functional Organizational Structure: Decisions are made by departmental heads and experts.

10. Suitability
Line Organizational Structure: It is suitable for small organizations with limited operations.
Functional Organizational Structure: It is suitable for medium and large scale organizations with multiple operations.




Disadvantages Of Functional Organization

Drawbacks or disadvantages of functional organizational structure are as follows:

1. Lack Of Unity Of Command

In functional organization, subordinates or lower level employees have to obey the instructions of number of bosses. So, there is no proper unity of command and conflict may be arise between workers and supervisors.

2. Lack Of Coordination

Due to poor unity of command, there exists lack of coordination in functional organizational structure. This may lead to poor organizational performance. 

3. Indiscipline

It is very difficult to maintain discipline in functional organization structure because confusion and conflict us created in the minds of employees due to multiple bosses. They cannot properly follow the instructions of many superiors.

4. Costly

High cost is another drawback of functional structure. The organization has to spend huge amount of money due to high remuneration of specialists and experts and high amount of clerical works.

.5 Difficulty In Fixing Responsibility

Because of lack of unity of command, poor coordination, lack of initiative and weak discipline, fixing of responsibility is very difficult in functional organizational structure.

Benefits Of Functional Organization

Advantages of functional organizational structure are as follows

1. Highly Specialized

Functional organization hires experts and specialists to perform different types of jobs. Each department is specialized and ensures a division of labor.

2. More Efficiency

Experts and specialists can perform the given task more effectively and efficiently because they can understand the work better than normal employees. So, the organization can be benefited. 

3. Less Burden To The Top Management

Departmental heads handle overall operating functions of related department. So, top level management has enough time for policy making and decision making function. 

4. Economy

Due to specialization, it facilitates large scale production. It results economy.

5. Better Control

Due to joint supervision of work (by departmental head and top level management), it is easy to control whole organizational activities.

6. Scope For Development

This type of organization provides different training and conducts other development programs to the superiors and subordinates. It helps them to improve their skills and opportunity for future development.

7. Division Of Work
Functional organization practice division of work. It segregates physical and mental functions. Works are performed by skilled employees of related field. This helps to boost the performance and brings positive output. 

8. Scope For Expansion And Mass Production

In functional organization, expansion is possible because of capable managers and supervisors. Mass production is also possible because of high level of work speed of experts.

Difference Between Line Organization And Line And Staff Organization

Following are the main differences between line organization structure and line and staff organization structure:

1. Authority

Line Organization: Totally centralized authority
Line And Staff Organization: centralized authority with the involvement of specialists for guidance.

2. Unity Of Command

Line Organization: There is unity of command because subordinates have superiors to command.
Line And Staff Organization: There is also unity of command but line authorities are not forced to implement the experts in opinions and advice.

3. Nature

Line Organization: Simple form of organization with clear division of authority and responsibility.
Line And Staff Organization: Complex form of organization creating confusion about authority and responsibility.

4. Discipline

Line Organization: Discipline is maintained strictly in this type of organization structure.
Line And Staff Organization: Liberalness in discipline.

5. Provision Of Expert

Line Organization: No provision of experts.
Line And Staff Organization: Yes, there is a provision of experts and functional specialists in this structure of organization.

6. Suitability

Line Organization: Suitable and effective for small and middle sized organization.
Line And Staff Organization: Suitable and effective for big firms.

7. Cost/Economy

Line Organization: It is economical in nature.
Line And Staff Organization: It is costly than line organization structure.

8. Possibility Of Conflict

Line Organization: No chance of conflict
Line And Staff Organization: High chance of conflict among line and staff authority.

9. Decision Making

Line Organization: Decisions are taken by top management in this organizational structure.
Line And Staff Organization: Decisions are made by experts and specialists.

10. Types Of Personnel

Line Organization: One type of personnel for line authority.
Line And Staff Organization: Two types of personnel(line and staff authority).

Disadvantages Of Line And Staff Organization

Drawbacks or disadvantages of line and staff organization structure are as follows: 

1. Problem Of Conflict

In line and staff organization structure, there is high chance of conflict between line and staff authorities due to misunderstanding. This may affect productivity of the organization.

2. Confusion

Confusion is another drawback of line and staff organization. Confusion is created due to lack of proper delegation of responsibility between line and staff authority. This definitely hampers the efficiency and productivity of the organization.

3. Expensive

This type of organization is costly than line organization structure. Line and staff organization hires experts and specialists and they are paid more remuneration. This increases administrative cost. So, this type of organization structure is not suitable for small firms.

4. Lack Of Coordination

Lack of coordination is another glaring defect of line and staff organization structure. Due to confusion and lack of proper communication, there is a chance of misinterpretation.  

5. Burden For Management

It is complicated for the top level management to handle the subordinates of line and staff. This hampers smooth operation.

Advantages Of Line And Staff Organization

Major advantages or benefits of line and staff organization structure are as follows:

1.Specialization

In line and staff organization structure, planning function is undertaken by the staff officers and line managers handle the doing functions through specialized staff personnel.

2. Better Discipline

Better discipline can be maintained in line and staff organization structure because of proper unity of command. It also helps to maintain stability in the organization.

3. Flexibility

Line and staff organization is flexible by its nature. New departments can be created and staffs can be added according to the need of the organization. 

4. Better Coordination

Better coordination is possible in line and staff organization due to the full support of staff authority.

5. Decision Efficiency

In line and staff organization, decisions are made by specialists and experts of related field. Therefore, decision making is effective in this type of organization structure.

6. Balanced Workload

Because of better coordination, specialization and proper division of work, there is balanced work load and less burden to the line executives.

7. Advancement Opportunity

In line and staff organization, different training and development programs are conducted with the help of experts and specialists. This provides scope of advancement to the employees. 


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