1. Management Concepts & Organizational Behavior
-Pawan Sharma

2. Delegation of Authority Organization Structure
Road Map
Formal and
Informal
Organization
Q & A
Impact of Technology
on Organizational
design
Decentralization
Delegation of Authority
Organization Structure

4. Chain command, Unity of command, and Span of control.
The organization chart of any company, therefore, enables one to understand easily three classical principles of organizing, viz.,
Chain command,
Unity of command, and
Span of control.

5. Chain of Command
The type of arrangement of various positions in an orderly way is termed scalar chain or chain of command.
The chain of command exists wherever an individual is made subordinate to another. Since ancient times, it has been recognized that the only way to structure unified systems involving large number of people is through a chain of command

6. Unity of Direction
The entire organization should be moving towards a common objective in a common direction. 

7. Span of Management
The span of control of the average manager in an organization determines the width of the organization as seen when viewing the organizational chart.
Fewer reports to the average manager will result in a taller organizational chart, with more management positions relative to the number of individual contributors

8. Problems with levels
i. Costs: Levels are costly. Too many levels involve lot of expenditure. Additional facilities in terms of secretarial staff have to be provided besides the pay differentials in the compensation package. In many organizations substantial expenditure has been saved by increasing the span.
ii. Communication: Successive layers of management act as communication filters distorting the transmission of information. Experience shows that the greater the number of management levels a message must pass through, the longer it will take to reach its destination. More often, the information also looses clarity. Thus, communication or organizational objectives, plans and policies become difficult. Omissions and misinterpretations usually occur as information passes through too many levels in the scalar chain.
iii. Managerial control: The distance between the top and bottom levels of an organization also affects control. For example, even the best of the plans which are definite and complete at the top level lose clarity as the plans are sub-divided and elaborated at lower levels

9. Factors Influencing Span of Management
Manager’s personality
Manager’s capability
Subordinates capabilities
Fatigue tolerance
Activity level
Non-supervisory activities
Similarity of activities supervised
Complexity of work
Availability of sophisticated facilities
Location

10. Departmentation
Departmentation is the process of dividing the organization’s overall task into manageable submits. The subunits are often referred to as departments, divisions, or sections. By whatever name the units are called, the process of creation of such sub-units to facilitate the performance of activities is known as departmentation.
Functional Departmentation

11. Product/ Market Departmentation

12. The Matrix Structure

13. Delegation Of Authority And Decentralization
Authority is the right to command. It is the discretion power vested with a manager to use the organizational resources. Managers acquire authority by virtue of the rank or title associated with their position.
Responsibility, on the other hand is the obligation to perform the tasks and accounts for their satisfactory completion. It is implied that an individual is expected to fulfill certain job requirements when he or she accepts a position in the organization.

14. Process of Delegation
Entrustment of Duties or assignment of Responsibilities
Granting of Authority
Creation of Accountability

15. Barriers to Effective Delegation
Lack of Confidence in Subordinates
The “I can do it better myself fallacy”
Lack of ability to direct
Aversion to Risk
Inadequate Information and Resources

16. Overcoming the Barriers
Effective Communication:
Parity of Authority and Responsibility:
Incentives for additional responsibility: