In: Economics
What is the relationship among centralization and decentralization, span of authority, and delegation? Explain what the concepts are and how the concepts are related. For example, what goes with centralization, a wide or narrow span of authority, and how does that affect delegation? Think of the possible relationships and explain what this means to managers.
Answer
A business or a company is a mixture of authorities and work. On top authorities the powers are limited but centralized as the main job of policy making , competitive markets , analysis of the market requirements etc are done on the top level whereas decentralized authority's can be seen just after the top level where the authorities are divided among the managers and various other officials . Decentralization and delegation can be seen in lower authorities as when a work load of a manager or the top authorities increases they delegate there work to there subordinates with proper authority but the answerability towards the work will be of that manager itself whereas when responsibility is given with the work it is termed as decentralization where the answerability towards the work is of the subordinate.
If the authorities are centralized then it will surly affect the delegation and the decentralization concepts which are key to a successful business as this may lack growth motivation and various other factors among the managers and the subordinates. If the power is centralized it will also increase the workload for the authorities.
Therefore mixture of all these might bring results for a company or business . As they are all interconnected to each other