Mastering Organizational Fundamentals: Span of Control, Delegation, and Centralization

Posted on Feb 23, 2025 in Business Administration and Management (BAM)

Lesson 6: Fundamentals of Organizing

2 Marks Questions

  • Define span of control.
  • Or, define span of management (2076, 2075, 2073, 2072)

Ans: Span of control can be defined as the total number of subordinates or junior workers that a manager can control or manage at a particular time.

Define mechanistic organization

Ans: A mechanistic organization is an organizational structure that is formal, centralized, and less flexible.

Define Organic organization.

Ans: An organic organization is an organizational structure that is informal, decentralized, and highly flexible.

Long Answer Questions (10 to 15 Marks)

Decentralization, Centralization, Delegation of Authority

  1. What is delegation of authority? Explain barriers to delegation of authority. How can we eliminate barriers to delegation of authority? (2076) (2072)

Ans: Delegation of authority simply means transferring or distributing responsibility, power, and authority, and creating accountability to employees. Here, accountability means being responsible or being answerable for something. The elements of delegation of authority are responsibility, authority, and accountability.

The barriers to delegation of authority are:

    1. Lack of confidence
    2. Lack of communication
    3. Lack of coordination
    4. Lack of trust
    5. Lack of information
    6. Lack of incentives
    7. Lack of motivation
    8. Lack of relationship with superior

Eliminating barriers to delegation of authority:

  1. Developing confidence
  2. Developing proper communication
  3. Developing proper coordination
  4. Developing trust
  5. Providing information
  6. Providing incentives
  7. Providing motivation
  8. Developing relationships with superiors

What is decentralization? Explain pros and cons of decentralization. (Pros and cons means advantage & disadvantage) (2074)(2073)

Ans: Decentralization simply means transferring or distributing responsibility, power, and authority to employees. Decentralization is done in large organizations where there are many workers.

The pros and cons of decentralization are given below:

Pros or Advantages of Decentralization

  1. Better decisions
  2. Better supervision
  3. Better communication
  4. Relief to top management
  5. Innovation
  6. Motivation

Cons or Disadvantages of Decentralization

  1. Increases expenses
  2. Increases conflict
  3. Increases extra use of people
  4. Delay in decision-making
  5. Lack of uniformity

What is centralization? Explain pros and cons of centralization. (Pros and cons means advantage & disadvantage)

Ans: Centralization simply means not transferring or not distributing, or reserving responsibility, authority, and power to employees. Centralization is done in small organizations where there are fewer workers.

Pros or Advantages of Centralization

  1. Reduces expenses
  2. Reduces conflict
  3. Reduces extra use of people
  4. Quick decision-making
  5. Uniformity

Cons or Disadvantages of Centralization

  1. Poor decisions
  2. Poor supervision
  3. Poor communication
  4. Burden to top management
  5. Lack of Innovation
  6. Lack of Motivation

Probable

What is a 360-degree structure? Explain merits and demerits of it. (10 marks)

Ans: A 360-degree structure is a modern organizational structure in which employees get feedback from all the people they work with. For example, they get feedback from peers, customers, top management, superiors, self, junior workers; therefore, there are six parties involved in 360 degrees.

Feedback might be positive or negative. Positive feedback motivates them, whereas negative feedback demotivates them.

Merits / Pros / Advantages

  1. Promotes communication
  2. Promotes coordination
  3. Promotes innovation
  4. Promotes self-development

Demerits/ Cons / Disadvantages

  1. Chance of conflict
  2. Chance of negative feedback
  3. Time-consuming