Centralization and decentralization: These two principles are linked to delegation. With centralizationthere will be minimum delegation to managers in other areas, departments ordivisions of the business. Decentralization, passing decision-making authorityto managers in other areas, departments or divisions in the business, allowingdecisions to be taken away from head office, must involve delegation.
A centralizedorganization would insist on all sections of the business following the sameprocedures, which gives the business a feeling of uniformity and consistency.Head of office will be able to exert considerable control over alloperations. Decentralized organizations will allow staff to be empoweredand this demonstrates trust in them. Decisions will be taken ‘closer to theaction’ in terms of junior managers being more aware of local factors or closerto the consumers themselves.Delegation; thisis a very important principle that can have far reaching effects on both the organizationalstructure and the motivation levels of subordinate employees. Delegation meansthe passing down of authority to perform tasks and take decisions from higherto lower levels in the organization.
As Herzberg and other researchers pointedout, this process can be very beneficial to motivation. Generally, the widerthe span of control, the greater the degree of delegation that is undertaken.Imagine a manager with a span of control of 15 subordinates. It might beimpossible to closely control the work of each of these every day – the managerwould be allowed no time for more important strategic matters. Thus, themanager will delegate authority to his staff, and he will trust them to performwell. Clearly, they are accountable to the manager for good performance; butthe manager to be empowered and this demonstrates trust in them.
Decisionswill be taken ‘closer to the action’ in terms of junior managers being moreaware of local factors or closer to the consumers themselves.