Orgamisational structure

Five common approaches — functional, divisional, matrix, team, and networking—help managers determine departmental groupings (grouping of positions into departments). The five structures are basic organizational structures, which are then adapted to an organization's needs. All five approaches combine varying elements of mechanistic and organic structures. For example, the organizational design trend today incorporates a minimum of bureaucratic features and displays more features of the organic design with a decentralized authority structure, fewer rules and procedures, and so on.

Functional structure

The functional structure groups positions into work units based on similar activities, skills, expertise, and resources (see Figure 1 for a functional organizational chart). Production, marketing, finance, and human resources are common groupings within a functional structure.

The functional structure.

As the simplest approach, a functional structure features well-defined channels of communication and authority/responsibility relationships. Not only can this structure improve productivity by minimizing duplication of personnel and equipment, but it also makes employees comfortable and simplifies training as well.

But the functional structure has many downsides that may make it inappropriate for some organizations. Here are a few examples:

• The functional structure can result in narrowed perspectives because of the separateness of different department work groups. Managers may have a hard time relating to marketing, for example, which is often in an entirely different grouping. As a result, anticipating or reacting to changing consumer needs may be difficult. In addition, reduced cooperation and communication may occur.
  
• Decisions and communication are slow to take place because of the many layers of hierarchy. Authority is more centralized.
  
• The functional structure gives managers experience in only one field—their own. Managers do not have the opportunity to see how all the firm's departments work together and understand their interrelationships and interdependence. In the long run, this specialization results in executives with narrow backgrounds and little training handling top management duties.
  

Divisional structure 

Because managers in large companies may have difficulty keeping track of all their company's products and activities, specialized departments may develop. These departments are divided according to their organizational outputs. Examples include departments created to distinguish among production, customer service, and geographical categories. This grouping of departments is called divisional structure (see Figure 2 ). These departments allow managers to better focus their resources and results. Divisional structure also makes performance easier to monitor. As a result, this structure is flexible and responsive to change.

The divisional structure—Disney in the early 1990s.

However, divisional structure does have its drawbacks. Because managers are so specialized, they may waste time duplicating each other's activities and resources. In addition, competition among divisions may develop due to limited resources.

Matrix structure

The matrix structure combines functional specialization with the focus of divisional structure (see Figure 3 ). This structure uses permanent cross-functional teams to integrate functional expertise with a divisional focus.

The matrix structure.

Employees in a matrix structure belong to at least two formal groups at the same time—a functional group and a product, program, or project team. They also report to two bosses—one within the functional group and the other within the team.

This structure not only increases employee motivation, but it also allows technical and general management training across functional areas as well. Potential advantages include

• Better cooperation and problem solving.
  
• Increased flexibility.
  
• Better customer service.
  
• Better performance accountability.
  
• Improved strategic management.
  

Predictably, the matrix structure also has potential disadvantages. Here are a few of this structure's drawbacks:

• The two-boss system is susceptible to power struggles, as functional supervisors and team leaders vie with one another to exercise authority.
  
• Members of the matrix may suffer task confusion when taking orders from more than one boss.
  
• Teams may develop strong team loyalties that cause a loss of focus on larger organization goals.
  
• Adding the team leaders, a crucial component, to a matrix structure can result in increased costs.
  

Team structure 

Team structure organizes separate functions into a group based on one overall objective (see Figure 4 ). These cross-functional teams are composed of members from different departments who work together as needed to solve problems and explore opportunities. The intent is to break down functional barriers among departments and create a more effective relationship for solving ongoing problems.

The team structure.

The team structure has many potential advantages, including the following:

• Intradepartmental barriers break down.
  
• Decision-making and response times speed up.
  
• Employees are motivated.
  
• Levels of managers are eliminated.
  
• Administrative costs are lowered.
  

The disadvantages include:

• Conflicting loyalties among team members.
  
• Time-management issues.
  
• Increased time spent in meetings.
  

Managers must be aware that how well team members work together often depends on the quality of interpersonal relations, group dynamics, and their team management abilities.

Network structure

The network structure relies on other organizations to perform critical functions on a contractual basis (see Figure 5 ). In other words, managers can contract out specific work to specialists.

The network structure.

This approach provides flexibility and reduces overhead because the size of staff and operations can be reduced. On the other hand, the network structure may result in unpredictability of supply and lack of control because managers are relying on contractual workers to perform important work.

Difference between centralization and decentralization

More Centralization

More Decentralization

Environment is stable Lower-level managers are not as capable or experienced at making decisions as upper-level managers. Lower-level managers do not want to have say in decisions Decisions are significant. Organization is facing a crisis or the risk of company failure. Company is large. Effective implementation of company strategies depends on managers retaining say over what happens.

Environment is complex, uncertain. Lower-level managers are capable and experienced at making decisions. Lower-level managers want a voice in decisions. Decisions are relatively minor. Corporate culture is open to allowing managers to have a say in what happens. Company is geographically dispersed. Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions

Centralization and Decentralization

CENTRALIZATION

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 authority at central points in the organization. The implication of centralization can be :-

1. Reservation of decision making power at top level.
2. Reservation of operating authority with the middle level managers.
3. Reservation of operation at lower level at the directions of the top level.

Under centralization, the important and key decisions are taken by the top management and the other levels are into implementations as per the directions of top level. For example, in a business concern, the father & son being the owners decide about the important matters and all the rest of functions

like product, finance, marketing, personnel, are carried out by the department heads and they have to act as per instruction and orders of the two people. Therefore in this case, decision making power remain in the hands of father & son.

DECENTRALIZATION

The term "decentralization" embraces a variety of concepts which must be carefully analyzed in any particular country before determining if projects or programs should support reorganization of financial, administrative, or service delivery systems. Decentralization—the transfer of authority and responsibility for public functions from the central government to subordinate or quasi-independent government organizations and/or the private sector—is a complex multifaceted concept. Different types of decentralization should be distinguished because they have different characteristics, policy implications, and conditions for success.  

Why Decentralization ?

Large companies having independent product or service lines may adopt a form of decentralization.

Under decentralization the whole organization is divided in to self-sufficient divisions.

Having experienced many difficulties in the smooth  running of such centralizes organizations, decentralizations of authority has been suggested and largely resorted to particularly to achieve the following purposes.

            -           Easing burden of chief executive.

            -           Facilitating diversification,

            -           Providing product of market emphasis.

            -           Developing managers and

            -           Improving motivation.

TYPES OF DECENTRALIZATION

Types of decentralization include political, administrative, fiscal, and market decentralization. Drawing distinctions between these various concepts is useful for highlighting the many dimensions to successful decentralization and the need for coordination among them. Nevertheless, there is clearly overlap in defining any of these terms and the precise definitions are not as important as the need for a comprehensive approach. Political, administrative, fiscal and market decentralization can also appear in different forms and combinations across countries, within countries and even within sectors.

Political Decentralization

Political decentralization aims to give citizens or their elected representatives more power in public decision-making. It is often associated with pluralistic politics and representative government, but it can also support democratization by giving citizens, or their representatives, more influence in the formulation and implementation of policies. Advocates of political decentralization assume that decisions made with greater participation will be better informed and more relevant to diverse interests in society than those made only by national political authorities. The concept implies that the selection of representatives from local electoral jurisdictions allows citizens to know better their political representatives and allows elected officials to know better the needs and desires of their constituents.

Political decentralization often requires constitutional or statutory reforms, the development of pluralistic political parties, the strengthening of legislatures, creation of local political units, and the encouragement of effective public interest groups.

Administrative Decentralization 

Administrative decentralization seeks to redistribute authority, responsibility and financial resources for providing public services among different levels of government. It is the transfer of responsibility for the planning, financing and management of certain public functions from the central government and its agencies to field units of government agencies, subordinate units or levels of government, semi-autonomous public authorities or corporations, or area-wide, regional or functional authorities.

The three major forms of administrative decentralization -- deconcentration, delegation, and devolution -- each have different characteristics.

Deconcentration. Deconcentration--which is often considered to be the weakest form of decentralization and is used most frequently in unitary states-- redistributes decision making authority and financial and management responsibilities among different levels of the central government. It can merely shift responsibilities from central government officials in the capital city to those working in regions, provinces or districts, or it can create strong field administration or local administrative capacity under the supervision of central government ministries.

Delegation. Delegation is a more extensive form of decentralization. Through delegation central governments transfer responsibility for decision-making and administration of public functions to semi-autonomous organizations not wholly controlled by the central government, but ultimately accountable to it. Governments delegate responsibilities when they create public enterprises or corporations, housing authorities, transportation authorities, special service districts, semi-autonomous school districts, regional development corporations, or special project implementation units. Usually these organizations have a great deal of discretion in decision-making. They may be exempt from constraints on regular civil service personnel and may be able to charge users directly for services.

Devolution. A third type of administrative decentralization is devolution. When governments devolve functions, they transfer authority for decision-making, finance, and management to quasi-autonomous units of local government with corporate status. Devolution usually transfers responsibilities for services to municipalities that elect their own mayors and councils, raise their own revenues, and have independent authority to make investment decisions. In a devolved system, local governments have clear and legally recognized geographical boundaries over which they exercise authority and within which they perform public functions. It is this type of administrative decentralization that underlies most political decentralization.

Fiscal Decentralization

Financial responsibility is a core component of decentralization. If local governments and private organizations are to carry out decentralized functions effectively, they must have an adequate level of revenues –either raised locally or transferred from the central government– as well as the authority to make decisions about expenditures. Fiscal decentralization can take many forms, including a) self-financing or cost recovery through user charges, b) co-financing or co-production arrangements through which the users participate in providing services and infrastructure through monetary or labor contributions; c) expansion of local revenues through property or sales taxes, or indirect charges; d) intergovernmental transfers that shift general revenues from taxes collected by the central government to local governments for general or specific uses; and e) authorization of municipal borrowing and the mobilization of either national or local government resources through loan guarantees. In many developing countries local governments or administrative units possess the legal authority to impose taxes, but the tax base is so weak and the dependence on central government subsidies so ingrained that no attempt is made to exercise that authority.

Economic or Market Decentralization

The most complete forms of decentralization from a government's perspective are privatization and deregulation because they shift responsibility for functions from the public to the private sector. Privatization and deregulation are usually, but not always, accompanied by economic liberalization and market development policies. They allow functions that had been primarily or exclusively the responsibility of government to be carried out by businesses, community groups, cooperatives, private voluntary associations, and other non-government organizations.

Privatization. Privatization can range in scope from leaving the provision of goods and services entirely to the free operation of the market to "public-private partnerships" in which government and the private sector cooperate to provide services or infrastructure. Privatization can include: 1) allowing private enterprises to perform functions that had previously been monopolized by government; 2) contracting out the provision or management of public services or facilities to commercial enterprises indeed, there is a wide range of possible ways in which function can be organized and many examples of within public sector and public-private institutional forms, particularly in infrastructure; 3) financing public sector programs through the capital market (with adequate regulation or measures to prevent situations where the central government bears the risk for this borrowing) and allowing private organizations to participate; and 4) transferring responsibility for providing services from the public to the private sector through the divestiture of state-owned enterprises.

Deregulation. Deregulation reduces the legal constraints on private participation in service provision or allows competition among private suppliers for services that in the past had been provided by the government or by regulated monopolies. In recent years privatization and deregulation have become more attractive alternatives to governments in developing countries. Local governments are also privatizing by contracting out service provision or administration.

Implications of Decentralization

1. There is less burden on the Chief Executive as in the case of centralization.
2. In decentralization, the subordinates get a chance to decide and act independently which develops skills and capabilities. This way the organization is able to process reserve of talents in it.
3. In decentralization, diversification and horizontal can be easily implanted.
4. In decentralization, concern diversification of activities can place effectively since there is more scope for creating new departments. Therefore, diversification growth is of a degree.
5. In decentralization structure, operations can be coordinated at divisional level which is not possible in the centralization set up.
6. In the case of decentralization structure, there is greater motivation and morale of the employees since they get more independence to act and decide.
7. In a decentralization structure, co-ordination to some extent is difficult to maintain as there are lot many department divisions and authority is delegated to maximum possible extent, i.e., to the bottom most level delegation reaches. Centralization and decentralization are the categories by which the pattern of authority relationships became clear. The degree of centralization and de-centralization can be affected by many factors like nature of operation, volume of profits, number of departments, size of a concern, etc. The larger the size of a concern, a decentralization set up is suitable in it.

 

Advantages of decentralization

-           Decentralization leads to specialization.

-           Encourages decision making and assumption of authority and responsibility.

-           Decentralization makes the sub – ordinates to work with involvement

-           Facilitates diversification in large scale.

-           Promote the development of general managers.

-           Aids in adoption of fast changing Environment.

Disadvantages of Decentralization

-           Makes it more difficult to have a uniform policy.

-           Decentralization leads to problem in co – ordination.

-           May be limited to External forces.

-           Leads to increase in cost.

-           May some time leads to mis-use of power in high levels.

-           Leads to expenses in training a manager.

-           May be limited by the availability of qualified managers.

DELEGATION OF AUTHORITY

A concept related to authority is delegation. Delegation is the downward transfer of authority from a manager to a subordinate. Most organizations today encourage managers to delegate authority in order to provide maximum flexibility in meeting customer needs. In addition, delegation leads to empowerment, in that people have the freedom to contribute ideas and do their jobs in the best possible ways. This involvement can increase job satisfaction for the individual and frequently results in better job performance. Without delegation, managers do all the work themselves and underutilize their workers. The ability to delegate is crucial to managerial success. Managers need to take four steps if they want to successfully delegate responsibilities to their teams.

 Steps in Delegation of authority

1. Specifically assign tasks to individual team members.
   The manager needs to make sure that employees know that they are ultimately responsible for carrying out specific assignments.
   
2. Give team members the correct amount of authority to accomplish assignments.
   Typically, an employee is assigned authority commensurate with the task. A classical principle of organization warns managers not to delegate without giving the subordinate the authority to perform to delegated task. When an employee has responsibility for the task outcome but little authority, accomplishing the job is possible but difficult. The subordinate without authority must rely on persuasion and luck to meet performance expectations. When an employee has authority exceeding responsibility, he or she may become a tyrant, using authority toward frivolous outcomes.
   
3. Make sure that team members accept responsibility.
   Responsibility is the flip side of the authority coin. Responsibility is the duty to perform the task or activity an employee has been assigned. An important distinction between authority and responsibility is that the supervisor delegates authority, but the responsibility is shared. Delegation of authority gives a subordinate the right to make commitments, use resources, and take actions in relation to duties assigned. However, in making this delegation, the obligation created is not shifted from the supervisor to the subordinate — it is shared. A supervisor always retains some responsibility for work performed by lower-level units or individuals.
   
4. Create accountability.
   

Team members need to know that they are accountable for their projects. Accountability means answering for one's actions and accepting the consequences. Team members may need to report and justify task outcomes to their superiors. Managers can build accountability into their organizational structures by monitoring performances and rewarding successful outcomes. Although managers are encouraged to delegate authority, they often find accomplishing this step difficult for the following reasons:

• Delegation requires planning, and planning takes time. A manager may say, “By the time I explain this task to someone, I could do it myself.” This manager is overlooking the fact that the initial time spent up front training someone to do a task may save much more time in the long run. Once an employee has learned how to do a task, the manager will not have to take the time to show that employee how to do it again. This improves the flow of the process from that point forward.
  
• Managers may simply lack confidence in the abilities of their subordinates. Such a situation fosters the attitude, “If you want it done well, do it yourself.” If managers feel that their subordinates lack abilities, they need to provide appropriate training so that all are comfortable performing their duties.
  
• Managers experience dual accountability. Managers are accountable for their own actions and the actions of their subordinates. If a subordinate fails to perform a certain task or does so poorly, the manager is ultimately responsible for the subordinate's failure. But by the same token, if a subordinate succeeds, the manager shares in that success as well, and the department can be even more productive.
  
• Finally, managers may refrain from delegating because they are insecure about their value to the organization. However, managers need to realize that they become more valuable as their teams become more productive and talented.

Elements of delegation

The process of delegation involves three basic actions whether expressed or implied. They are

The delegator should assign duties to subordinates.

He has to grant authority to subordinates to the delegated part of his work.

Delegation should create obligation on the part of subordinate to complete the job.

Merits

1. Relieves manager’s workload.
2. Leads to better decisions.
3. Speed up decision – builds up morale.
4. Train subordinates and
5. Helps to create formal organization structure.

Barriers to delegation.

On the manager’s side:

1.                  Fear of loss of power

2.                  Lack of confidence in subordinates.

3.                  Fear of being exposed.

4.                  Difficulty in briefing.

On the subordinates side:

1.                  Fear of criticism

2.                  Lack of adequate information

3.                  Lack of self confidence and initiative and resources.

4.                  No positive personal gain.

Guidelines for Effective Delegation

1.                  Clarity in assigning the task

2.                  Proportionate authority.

3.                  Limits of subordinates authority.

4.                  Positive incentive for accepting responsibility.

5.                  Proper training of subordinates.

6.                  Create climate for mutual trust and goodwill

7.                  No over laps or slips in delegation.

Authority and responsibility

     

Authority is the basis of organization in as much as organization is described as a system of authority relationships. Authority is the power to command others to act in a manner deemed by the possessor of the authority to further enterprise or departmental purpose. It is the power to make decisions which guide the actions of others. The person who makes the decisions is the superior and the person who accepts them and is guided by them is called one subordinate.

Authority is the right to give orders and the power to exact obedience.

-          HENRI FAYOL

	Authority	Power
1	It is the institutionalized right of a superior to command and compel his subordinates to perform a certain act.	It is the ability of a person to influence another person to perform an act.
2	It rests in the chair	It rests in the person
3	It is delegated	It is earned by own efforts
4	It is well defined	It is undefined
5	It is what exists in the eye It is a dejure concept	It exists in fact. It is defacto concept
6	Basis for formal organization	Basis for informal organ

Organizational authority has three important underlying principles:

• Authority is based on the organizational position, and anyone in the same position has the same authority.
  
• Authority is accepted by subordinates. Subordinates comply because they believe that managers have a legitimate right to issue orders.
  
• Authority flows down the vertical hierarchy. Positions at the top of the hierarchy are vested with more formal authority than are positions at the bottom.
  

In addition, authority comes in three types:

• Line authority gives a manager the right to direct the work of his or her employees and make many decisions without consulting others. Line managers are always in charge of essential activities such as sales, and they are authorized to issue orders to subordinates down the chain of command.
  
• Staff authority supports line authority by advising, servicing, and assisting, but this type of authority is typically limited. For example, the assistant to the department head has staff authority because he or she acts as an extension of that authority. These assistants can give advice and suggestions, but they don't have to be obeyed. The department head may also give the assistant the authority to act, such as the right to sign off on expense reports or memos. In such cases, the directives are given under the line authority of the boss.
  
• Functional authority is authority delegated to an individual or department over specific activities undertaken by personnel in other departments. Staff managers may have functional authority, meaning that they can issue orders down the chain of command within the very narrow limits of their authority. For example, supervisors in a manufacturing plant may find that their immediate bosses have line authority over them, but that someone in corporate headquarters may also have line authority over some of their activities or decisions.

Responsibility is an obligation of the individual to perform assigned duties to the best of his ability under the direction of his executive leader.

-          KEITH DAVIS

Responsibility refers to duty, activity or sometimes even authority. It really means that the obligation of a subordinate to perform the duty assigned to him. The essence of responsibility is, then obligation. In the normal functioning of an enterprise much of the responsibility in the nature of continuing obligation which means that the subordinate has an obligation to discharge his functions as required by the superior continually. Responsibility involves Compliance, obedience and Dependability. A failure to observe these elements may call forth a penalty, punishment or disciplinary action against the erring subordinate.

The term accountability can also be used as a substitute for responsibility. Accountability refers to the liability of a subordinate for a proper discharge of his functions. It includes responsibility and arises from it. But accountability cannot be delegated. Thus to be accountable is to be answerable for the fulfillment or non-fulfillment of the authority or responsibility assigned.

Graicunas Theory of Span of Control

Graicunas Theory of Span of Control

Vytautas Andrius Graiciunas (1898-1952) was a Lithuanian french management consultant, management theorist and engineer.

In 1933, he published a paper called "Relationship in Organisation." In this paper, he mentioned three types of Superior-Subordinate relationships, viz.,

1. Direct Single Relationships,
2. Direct Group Relationships, and
3. Cross Relationships.

According to V.A. Graicunas, as the number of subordinates increases arithmetically (like 1, 2, 3, 4, 5, 6, etc.) the number of relationships which the superior has to control also increases almost geometrically (like 1, 6, 18, 44, 100, 244, etc.). Therefore, a superior can only control a limited number of subordinates, and anything beyond this limit is very hard to control.

Example of Graicunas Theory

V.A. Graicunas Theory can be explained with the help of this simple example.
For example, consider Gaurav (G) is a superior (boss) and Manoj (M) and Sameer (S) are his subordinates (juniors or lower-grade employees).

According to V.A. Graicunas, Gaurav (G) has to control following three types of relationships, with or among Manoj (M) and Sameer (S):-
(a) Direct Single Relationships :-

G with M, and G with S, i.e. a total of 2 direct single relationships.

(b) Direct Group Relationship :-

G with M in presence of S, and G with S in presence of M, i.e. a total of 2 direct group relationships.

(c) Cross Relationships :-

M with S, and S with M, i.e. again a total of 2 cross relationships.

Therefore, total number of relationships which Gaurav (G) has to control are:- 2 + 2 + 2 = 6 relationships.
Thus, when the number of subordinates is 2, the number of relationships, which the superior (boss) has to control is 6. Similarly, when the number of subordinates is 3, the number of relationships to control will be 18.

Graicunas Formula

V.A. Graicunas has explained his principle with the help of the this formula:-

By using Graicunas formula, we can find out the number of relationships (r), if the number of subordinates (n) is given.

• Example of Graicunas Formula
Consider this e.g. If a superior has 5 subordinates (n=5) then the number of relationships (r) which he has to control can be calculated as follows:-

The above table or chart was prepared by using Graicunas formula.

According to V.A. Graicunas, when the number of subordinates increases then there is an increase in the Direct Single Relationships, Direct Group Relationships and Cross Relationships.

So, as the number of subordinates increases arithmetically, the number of relationships among them also increases almost geometrically.

So, according to him, a top-level manager can effectively manage only 222 relationships. Therefore, a top-level manager should not have more than 6 subordinates. Similarly, a lower-level manager should not have more than 20 subordinates.

 Limitations of Graicunas Theory

The Graicunas Theory is criticised because of the following reasons:-

1. He gives more importance to the numerical factor.
2. He gives more importance to the relationships.

Principles of Span of Control/Supervision

According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. According to this principle, a manager should be able to handle what number of employees under him should be decided. This decision can be taken by choosing either froma wide or narrow span. There are two types of span of control:-

1. Wide span of control- It is one in which a manager can supervise and control effectively a large group of persons at one time. The features of this span are:-
   
   1. Less overhead cost of supervision
   2. Prompt response from the employees
   3. Better communication
   4. Better supervision
   5. Better co-ordination
   6. Suitable for repetitive jobs
    According to this span, one manager can effectively and efficiently handle a large number of subordinates at one time.
   
2.  Narrow span of control- According to this span, the work and authority is divided amongst many subordinates and a manager doesn't supervises and control a very big group of people under him. The manager according to a narrow span supervises a selected number of employees at one time. The features are:-
   
   1. Work which requires tight control and supervision, for example, handicrafts, ivory work, etc. which requires craftsmanship, there narrow span is more helpful.
   2. Co-ordination is difficult to be achieved.
   3. Communication gaps can come.
   4. Messages can be distorted.
   5. Specialization work can be achieved.

Factors influencing Span of Control

1. Managerial abilities- In the concerns where managers are capable, qualified and experienced, wide span of control is always helpful.
2. Competence of subordinates- Where the subordinates are capable and competent and their understanding levels are proper, the subordinates tend to very frequently visit the superiors for solving their problems. In such cases, the manager can handle large number of employees. Hence wide span is suitable.
3. Nature of work- If the work is of repetitive nature, wide span of supervision is more helpful. On the other hand, if work requires mental skill or craftsmanship, tight control and supervision is required in which narrow span is more helpful.
4. Delegation of authority- When the work is delegated to lower levels in an efficient and proper way, confusions are less and congeniality of the environment can be maintained. In such cases, wide span of control is suitable and the supervisors can manage and control large number of sub- ordinates at one time.
5. Degree of decentralization- Decentralization is done in order to achieve specialization in which authority is shared by many people and managers at different levels. In such cases, a tall structure is helpful. There are certain concerns where decentralization is done in very effective way which results in direct and personal communication between superiors and sub- ordinates and there the superiors can manage large number of subordinates very easily. In such cases, wide span again helps.

Principles of organization

There are 14 Principle of Organization.

1. Unity of objective
2. Efficiency
3. Span of control
4. Scalar Principle
5. Delegation
6. Parity of Authority and Responsibility
7. Absolute Responsibility
8. Level of authority
9. Unity of command
10. Departmentation
11. Balance
12. Flexibility
13. Continuity
14. Leadership Facilitation