Page 153 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 8: Span of Management

3. If the span of management is large, ………………levels would be needed in the organisation. Notes
4. If the organisation structure is…………… the span of control is very large at the lowest
level.

5. …………………..span of supervision leads to a…………….organisation structure.
6. Empowerment can increase .................. in the lower staff.
7. .................. decentralisation increases the input, people at the bottom of the organisation
chart.
8. In a decentralised authority structure, more decisions are taken at .................. levels.
9. Decentralisation refers to the physical .................. of facilities and the extent of .................. of
authority throughout an organisation.
10. Centralisation is the opposite of .................. and .................. of authority.

8.8 Review Questions

1. Define the term ‘span of management’. How do you determine the optimum span of
management in a given situation?
2. Briefly point our Graicunas’ prescriptions about the span of management.
3. When you become a manager, what criteria will you favour to determine your span?
4. Absolute decentralization is as hypothetical as absolute centralization. Discuss. Also explain
the factors which affect the degree of decentralization which is best. Why?
5. Is decentralization of decision making powers in a company a result of individual
incompetence? Support your argument with reasons.
6. When does decentralization make sense and when is centralization more appropriate?
7. What will be the advantages and disadvantages of centralisation and/or decentralisation
in a sales oriented organisation?
8. If you are to handle an organsiation in which everything was being run at a centralized
level, what will you like to manage it as- in a centralized or decentralized manner?
9. The greater the number of decision at lower level, the greater is decentralisation. Comment.
10. How do you see the impact of political decentralization on the industry?
11. Examine the utility of vertical decentralistion for a manufacturing firm.
12. Suggest a mix of centralisation and decentralisation for a firm that you supposedly
inherited from your father and want to grow further.
13. Every employee has a discretion of his own. If all are allowed to make decisions, who will
decide who's discretion is better than all the others?
14. Decentralistion will always experience a certain amount of epidemic conflict between
those whose purpose is to coordinate and those who resist coordination. Why so?
15. In tough times, should an organisation opt for centralisation or decentralisation. Support
our answer with valid reasons.

16. What can be the possible disadvantages of decentralization?

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