Line/Staff Authority,
Chapter 9   Empowerment, and
            Decentralization
             • LO 1 Understand the nature of
               authority, power, and empowerment
             • LO 2 Distinguish between line, staff,
               and functional authority
 Learning    • LO 3 Discuss the nature of
Objectives     decentralization, centralization, and
               delegation of authority
             • LO 4 Recognize the importance of
               obtaining balance in the centralization
               and decentralization of authority
          Authority and Power
• Power is the ability of individuals or groups to
  induce or influence the beliefs or actions of
  other persons or groups.
• Authority in organization is the right in a
  position (and, through it, the right of the
  person occupying the position) to exercise
  discretion in making decisions affecting others.
              Empowerment
• Empowerment means that employees,
  managers, or teams at all levels in the
  organization are given the power to make
  decisions without asking their superiors for
  permission.
       Line/Staff Concepts and Functional
                    Authority
• Scalar principle
  – The clearer the line of authority, the clearer will be the responsibility
    for decision making and the more effective will be organizational
    communication.
• Line authority
  – Relationship in which a superior exercises direct supervision over a
    subordinate.
• Functional authority
  – Right delegated to an individual or a department to control specified
    processes, practices, policies, or other matters relating to activities
    undertaken by persons in other departments.
   Decentralization of Authority
• The Nature of Decentralization
• Decentralization is the tendency to disperse
  decision-making authority in an organized
  structure.
        Centralization and decentralization as tendencies
        Delegation of Authority
• Authority is delegated when a superior gives a
  subordinate discretion to make decisions.
• The process of delegation involves
  – Determining the results expected from a position,
  – Assigning tasks to the position,
  – Delegating authority for accomplishing these tasks,
  – Holding the person in that position responsible for
    the accomplishment of the tasks.
         The Art of Delegation
• Studies almost invariably find that poor or
  inept delegation is one of the causes of
  managerial failures.
• Much of the reason lies in personal attitudes
  toward delegation.
Personal Attitudes toward                         Overcoming Weak Delegation
Delegation
Receptiveness
Willingness to Let Go
Willingness to Allow Mistakes by Subordinates
Willingness to Trust Subordinates
Willingness to Establish and Use Broad Controls
     Recentralization of Authority and
   Balance as the Key to Decentralization
• Recentralization is centralization of authority
  that was once decentralized; normally not a
  complete reversal of decentralization, as the
  authority delegated is not wholly withdrawn.