To determine the degree of decentralization, 11 key factors affecting authority, decision making and organization structure must be considered.
Organizational Structure’s six elements are the six building blocks that managers must use in developing and structure organizational Hierarchy.
Control process is required for measuring and comparing performance, finding problems and improving entitle process for better performance.
Weak delegation arises due to inconsiderate delegation of authority of top authority in organization.
Functional authority is delegation the right to an individual or a department for controlling specified processes, practices, policies.
Authority is delegated when discretion is vested in a subordinate by a superior. The primary purpose of delegation is to make organization possible.
Hierarchy of objectives means that managers at different levels are concerned with different kinds of objectives according to their delegated authority.
Objectives of each department must set for serving its own objectives, do not hamper with other department and inline with the board Business objectives.
Objectives are quantitative, measurable, provided concrete terms, establish standards, written expected results that achievable with a give time frame.
For running organization properly both line and staff member’s contribution is required and their relationship must be well defined in organizational structure.