Thus extra labor and extra cost involved in duplication is avoided and economy is ensured. Centralized personal leadership, uniformity of activities and specialization leave no scope for duplication of work in the office. This brings efficiency and smoothness as well. The uniformity of activities and specialization of work lead to economic operation and best utilization of the staff services. Specialization of work as well as process and handling of the work by the staff who has specialized in the work he is handling are a few of the meaningful advantages of specialization. This will result into uniformity of activities and thereby ensuring uniform decision and uniform process. Obviously when centralized, the activities will be either in the hand of one individual or a few one but under his (one) direct, control. In order to group together and economies the working as well as cost the grouping of two and more departments into one also placing the same under one control goes a long way in equitably distributing in workload not only between different departments but between individual worker as well. Facility for personnel leadership.There is absolutely no doubt that the centralized Office organization helps in establishing a personnel leadership which may even be able to convert a losing business house into a profitable one because of strong, efficient, purposeful and non controversial central leadership.In fact, this position has brought disrepute to the term centralization in modern management set-up. Subordinates are asked only to function as a machine whereas the top management functions as operators. Thus, treatment accorded to them is only that of a machine. But centralization refers to the reduction of subordinates to a naught. ![]() Instead they asked to work and only work according to the dictates of what the boss wants and orders.Ĭentralization of the powers in respect of planning and control in not a new thing in any management. In such a type of office organization, the authority and powers of each and every activity lies in the hands of top few, say office manager and his immediate subordinate, and other subordinates play the second and subsequent fiddles. In any business organization, concentration of authority and powers in the hands of top management is referred to as centralization, everything which goes to reduce the importance of subordinates role in an organization is known as centralization.
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