Organisational Theory. Organisational theory deals with the arrangement and structure of an organisation. It outlines responsibilities, and the relationship.

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Presentation transcript:

Organisational Theory

Organisational theory deals with the arrangement and structure of an organisation. It outlines responsibilities, and the relationship of people within the organisation into defined roles which enable the company to reach its objectives.

Factors relating to effective management Responsibility Delegation Accountability Authority

Responsibility There should be a clear definition of responsibilities within the organisation Allows the people concerned to see where they stand, and enables colleagues and superiors to establish what are and what are not their responsibilities Responsibility should be absolute at each level, and superiors must be accountable for the actions of their subordinates. Responsibilities and limitations of normal decision making for each position should be clearly defined in the employees job description.

Delegation This is the handing over, by a manager, to another person within the organisation a part of his or her task, but without surrendering overall responsibility It is not simply instructing another person to do a job

Delegation implies that having set an objective the manager allows the other to go ahead (having been given broad terms and guidance), with the minimum of interference. At every level, managers should delegate tasks to their subordinates. A managers job, therefore, becomes one of co-ordinating the activities of those who report to them.

Efficiency in delegating authority depends on: Knowing what, and when, to delegate. The capabilities of subordinates. Access by subordinates to information necessary to make decisions. Incentives to subordinates, to decide what is best for the organisation and not just for the individuals or groups.

Accountability This is the obligation of subordinates to answer to managers for the exercise of authority in line with delegated authority. It is an agreed obligation to produce results in terms of objectives achieved, and it often implies reward for success and some form of censure for failure.

Authority This is the ability or right to require the action of others. There are four basic forms of authority: – Positional ‑ the status or standing of a person dependent on their office or appointment. – Technical ‑ as above, and dependent on knowledge. – Charismatic ‑ as above, and dependent on personality. – Seniority ‑ as above, but depending on age or length of time in the job or organisation.