How does effective delegation lead to effective management?
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By empowering employees, managers can concentrate on important matters and excel in new areas.
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How does effective delegation lead to effective management?
By empowering employees, managers can concentrate on important matters and excel in new areas.
Why must decentralisation be applied with caution?
It can lead to organisational disintegration if departments start to operate on their own guidelines, which may be contrary to the interest of the organisation.
How does decentralisation benefit Johnson & Johnson's relationship with customers and employees?
It enables each company to stay close to its customers, maintain short lines of communication, and accelerate the development of talent.
How does decentralisation provide relief to top management?
It reduces the amount of direct supervision required by top management, allowing them to focus on important policy decisions rather than both policy and operational decisions.
What is the need for a balance between centralisation and decentralisation in an organisation?
Every organisation will be characterised by both centralisation and decentralisation, requiring a balance between these coexisting forces.
What is one benefit of delegation for employee development?
Delegation allows employees to develop skills to perform complex tasks and assume responsibilities, improving their career prospects.
How does decentralisation help in identifying employees for more challenging positions?
It helps to identify those who can fill up more challenging positions through promotions and those who may not be successful in assuming greater responsibility.
What is an important difference between Johnson & Johnson and most other companies?
The concept of decentralised management.
What is the systematic effort in decentralisation according to Louis Allen?
Decentralisation is the systematic effort to delegate to the lowest level all authority except that which can be exercised at central points.
What does accountability imply?
Being answerable for the final outcome.
What is one of the challenges of decentralisation?
The accountability of performance.
What is the difference between centralised and decentralised organisations?
Centralised organisations have decision-making authority concentrated with top management, while decentralised organisations share decision-making authority with lower levels of management.
How did Henri Fayol define decentralisation?
Henri Fayol defined decentralisation as everything that increases the importance of a subordinate’s role, while centralisation reduces it.
What must management carefully select in a decentralised organisation?
Management must carefully select which decisions will be pushed down to lower levels and which will be retained for higher levels.
How is accountability generally enforced?
Through regular feedback on the extent of work accomplished.
What is the main difference in the nature of delegation and decentralisation?
Delegation is a compulsory act because no individual can perform all tasks on his own, while decentralisation is an optional policy decision made at the discretion of top management.
What is the purpose of decentralisation?
To increase the role of subordinates in the organisation by giving them more autonomy.
What does organising imply in the context of decision-making functions?
It implies the delegation of all decision-making functions to the lower level of the hierarchy.
What can happen if responsibility assigned is more than authority?
It may make a person ineffective.
What is the role of delegation in effective organizing?
Delegation is a key element in effective organizing as it helps in developing and maintaining effective coordination amongst departments, levels, and functions of management.
What is the importance of decentralisation in developing initiative among subordinates?
Decentralisation promotes self-reliance and confidence among subordinates by giving them the freedom to make their own decisions.
How does freedom of action differ between delegation and decentralisation?
Delegation involves more control by superiors, hence less freedom to take own decisions, whereas decentralisation involves less control over executives, hence greater freedom of action.
How does delegation improve coordination within an organisation?
Delegation defines authority, responsibility, and accountability, helping to avoid overlapping duties and duplication of effort.
What is the purpose of delegation?
To lessen the burden of the manager.
What does complete centralisation imply?
Complete centralisation implies the concentration of all decision-making functions at the apex of the management hierarchy, eliminating the need for a management hierarchy.
What does decentralisation imply beyond the mere transfer of authority?
It is a philosophy that implies selective dispersal of authority, recognising that people are competent, capable, and resourceful.
From where does authority arise?
Authority arises from a formal position.
In which direction does authority flow?
Authority flows downward from superior to subordinate.
What can happen if authority granted is more than responsibility?
It may lead to misuse of authority.
How should decentralisation be balanced in an organisation?
It must always be balanced with centralisation in areas of major policy decisions.
What does decentralisation refer to in an organisation?
Decentralisation refers to the delegation of authority throughout all levels of the organisation, placing decision-making authority nearest to the points of action.
Why is it unrealistic for an organisation to be completely centralised or decentralised?
Because as an organisation grows in size and complexity, there is a tendency to move towards decentralised decision-making.
What is accountability in the context of delegation?
Answerability for the outcome of the assigned task.
What must be commensurate with the assigned responsibility for effective delegation?
The authority granted must be commensurate with the assigned responsibility.
What role does delegation play in establishing management hierarchy?
Delegation establishes superior-subordinate relationships, determining the flow of authority and reporting structure.
What is the scope difference between delegation and decentralisation?
Delegation has a narrow scope as it is limited to the superior and his immediate subordinate, whereas decentralisation has a wide scope as it implies the extension of delegation to the lowest level of management.
How does Johnson & Johnson operate its business?
As 190 smaller companies, each focused on a specific medical or product franchise and/or geographic area.
What is the meaning of authority in the context of delegation?
The right to command.
Can accountability be delegated?
No, accountability cannot be delegated at all.
In which direction does accountability flow?
Accountability flows upward from subordinate to superior.
How does delegation facilitate organisational growth?
Delegation provides a ready workforce to take up leading positions in new ventures, aiding in the expansion of the organisation.
Why is decision-making faster in a decentralised organisation?
Decisions are taken at levels nearest to the points of action, reducing the need for approval from many levels and minimizing the chances of information distortion.
How can an organisation be regarded as greatly decentralised?
An organisation can be regarded as greatly decentralised when numerous and important decisions are taken by the lower levels.
What does the philosophy of decentralisation recognise about decision-makers?
It recognises the decision maker’s need for autonomy.
From where does accountability arise?
Accountability arises from responsibility.
In which direction does responsibility flow?
Responsibility flows upward from subordinate to superior.
How does decentralisation lead to better control within an organisation?
It allows for performance evaluation at each level, enabling individual assessment of departments.
How does delegation motivate employees?
Delegation builds self-esteem and confidence by entrusting employees with tasks, showing trust and commitment.
What systems are being evolved to address the accountability challenge in decentralisation?
Better control systems such as the balance score card and management information system.
How does decentralisation facilitate organisational growth?
It awards greater autonomy to lower levels of management, fostering competition among departments, increasing productivity, and generating more returns for expansion.
What is the status difference between delegation and decentralisation?
Delegation is a process followed to share tasks, while decentralisation is the result of a policy decision by top management.
What advantages does decentralisation provide to Johnson & Johnson?
It combines the advantages of being big with the agility and focus of smaller firms.
What does responsibility entail in the context of delegation?
The obligation to perform an assigned task.
Can authority be delegated?
Yes, authority can be delegated.
Can responsibility be entirely delegated?
No, responsibility cannot be entirely delegated.
Why do large organisations tend to move towards decentralised decision-making?
Because employees directly involved with certain operations tend to have more knowledge about them than top management.
From where does responsibility arise?
Responsibility arises from delegated authority.
What is the relationship between authority, responsibility, and accountability?
Authority is delegated, responsibility is assumed, and accountability is imposed.
How does decentralisation help in developing managerial talent for the future?
It provides subordinates with the experience of handling assignments independently, helping them prove their abilities and creating a reservoir of qualified manpower.
What does delegation ensure for managers?
Delegation ensures that subordinates perform tasks on behalf of the manager, reducing his workload and providing him with more time to concentrate on important tasks.