Distribution of decision-making powers
The principle of deployment of tasks, powers and responsibilities is one of the elements of the construction of the organizational structure. It is an important element in the creation of the design of the structure, because it determines how the decision-making power will be distributed among the various positions in the organization. For example, when the owner has a representative, he must give to him certain powers i.e.: to decide on the dates of payment, selection of subcontractors etc. The employee does not have to every time ask for acceptance of the owner, so a business owner can devote his time to make other more important decisions.
With the principles of the distribution of decision-making powers following issues are connected:
- determine the responsibilities of managers for the work of subordinates,
- delegation of the powers and responsibilities
- designation of the degree of concentration or decentralization of decision-making powers
The main importance is the principle of "balance of responsibilities, powers and responsibilities", which says that if a position in the organization has to do some task, we need to also grant him the necessary powers and to establish the responsibilities, which will balance the range of tasks and powers. The principle of responsibility assumes that the superior shall have full responsibility for the work of the subordinate.
Delegation - is a process during which the manager forward to the other employees its duties and powers.
The reasons for delegation:
- reducing the load for manager and allowing to focus his attention on other areas
- better preparation of the subordinate to solve a specific problem
- raising the qualifications of subordinates
Problems with delegation:
- some managers are not able to properly delegate permissions, they are afraid that people would harm their career, they do not have confidence in subordinates
- people are afraid that they will not be able to perform tasks and that their work will not be adequately rewarded, tend to avoid the risk and prefer that the entire responsibility was taken by boss
Just like some people can transfer their powers to others, all organizations develop the structure of powers of binding various positions and divisions. In the centralized structure, decisions are made by high-level management or even by a single person. Power is at the top of the organization. In the decentralized structure improvements are being made by larger number of people at the middle and lower management level.
- Vroom, V. H., & Yetton, P. W. (1973). Leadership and decision-making (Vol. 110). University of Pittsburgh Pre.