U-4 Org BM.pptx introduction types and breakdown

introduction and types of maintenance

1. CENTRALIZATION AND DECENTRALIZATION

2. CENTRALIZATION Centralization means reservation of authority at central point within the organization. In centralization, control and decision making reside at the top level of management. “Everything that goes to increase the importance of the subordinate’s role is decentralization; everything that goes to reduce it is centralization.” —Henry Fayol

3. EXECUTIVE DIRECTOR FINANCE MANAGER OPERATION MANAGER FINANCE EXECUTIVE ADMIN. OFFICER SENIOR MANAGER ASST. MANAGER

4. EXAMPLE OF CENTRALIZATION A Trucking company is an example of a company with a centralized organizational design. Trucking company managers make all operational decisions, sending information to individual drivers through dispatchers.

5. Advantages 1. Reduced cost : the standardized procedure and method helps in considerably reduction of management cost. 2. Uniformity in action: uniformity in action is established throughout the organization because of central administrative control. 3. Facility: centralization permits flexibility and adaptability of the organization to the changed circumstances . 4. Improved quality of work: Improved quality of management is possible because of standardized procedure and better supervision.

6. 5. Availability of information: For centralizing of an information institution one can get all necessary information from a specific please. 6. Make a good relationship: By centralizing of an information institution users can meet to each other. Thus they can make a good relation.

7. Disadvantages 1. Delay in information management : Centralization creates loss of man-hours and delay in information management. Quick decision is not possible which also results delay in information management process. .. 2.Remot control : Staff of the information institute are always kept under the control of the authority. 3.No loyalty : In centralization management process there is no subordinate’s initiative in work.

8. 4.No special attention : In centralization no special attention is given to special work as all works are done at one place. 5.Frustration: Centralization leads to frustration because of too rigid central control. 6. Expectation: Many poor users can not be able to read their expected books. 7.Interest: Many users lose their interest in reading books because of they have to come the specific place first then they can collect their information.

9. DECENTRALIZATION Decentralization is a systematic delegation of authority throughout the levels of management , in an organization. In decentralized organization, lower level managers can also take decisions. In the words of Henry Fayol ,” Everything that goes to increase the importance of the subordinate's role is Decentralization.”

10. Knowledge ,Ideas and information are flowing from the bottom to the top level of organization. Decentralized Approach Bottom to top approach Levels of organization

11. EXAMPLE OF DECENTRALIZATION Fast food franchise chain is an ideal example of decentralized organization. In franchise based organization, the product development and marketing decisions are controlled by the top level. But they give franchise owners great deal of independence in running their individual store. McDonalds is the world’s largest fast food chain.

12. ADVANTAGES OF DECENTRALIZATION 1) QUICK AND WISE DECISION POSSIBLE As decision making powers are reside at all levels of management, the authority at each level can make reasonably Accurate, wiser and timely decision. 2) REDUCES THE BURDEN OF TOP MANAGERS It free the top managers from the burden of taking too many operating decisions. 3) IMPROVES MOTIVATION Decentralization provides more chances for the subordinates to exercise initiative without any interference from the superior. This improves the morale of the employees and motivate them for peak performance.

13. 4) DEVELOPMENT OF THE MANAGERIAL PERSONNEL As the business grows in size, it requires the services of large number of managers and here decentralization provides a training ground for the would be managers. 5) ENSURE EFFECTIVE CONTROL It is easy to measure the performance of the operations at the department level. This will lead to effective control.

14. DISADVANTAGES OF DECENTRALIZATION 1. Uniform policies not Followed: Under decentralisation, it is not possible* to follow uniform policies and standardised procedures. Each manager will work and frame policies according to his talent. 2. Problem of Co-Ordination : Decentralisation of authority creates problems of co-ordination as authority lies dispersed widely throughout the organisation . 3. More Financial Burden: Decentralisation requires the employment of trained personnel to accept authority, it involves more financial burden and a small enterprise cannot afford to appoint experts in various fields.

15. 4. Require Qualified Personnel : Decentralisation becomes useless when there are no qualified and competent personnel. 5. Conflict: Decentralisation puts more pressure on divisional heads to realize profits at any cost. Often in meeting their new profit plans, bring conflicts among managers.

16. BASIS CENTRALIZATION DECENTRALIZATION 1.MEANING The retention of powers and authority with respect to planning and decisions, with the top management, is known as centralization. The dissemination of authority, responsibility and accountability to the various management levels, is known as decentralization. 2. INVOLVES Systematic and consistent reservation of authority. Systematic dispersal of authority. 3.COMMUNICATION FLOW vertical Open and free 4.DECISION MAKING slow Comparatively faster 5.ADVANTAGE Proper coordination and leadership Sharing of burden and responsibility 6.POWER OF DECISION MAKING Lies with the top management Multiple persons have the power of decision making 7.REASONS Inadequate control over the organization Considerable control over the organization 8.BEST SUITED FOR Small sized organization Large sized organization

17. CONCLUSION In ancient times, people used to run their organization in a centralized manner, but now the scenario has been changed completely due to rise in the competition where quick decision making is required and therefore many organizations opted for decentralizations. At present, most of the organizations are equipped with both the features. Complete centralization in an organizations not practicable because it represents that each and every single decision of the organization is taken by the top echelon. On the other hand, decentralization is an indicator of no control over the activities of subordinates. So, a balance between these two should be maintained.

18. Span of control is  the number of staff members that report to a manager . A higher number of reports per manager results in a flatter organizational structure and fewer opportunities for promotion. A lower number of reports per manager results in a taller organizational structure and more management direction and input .

19. According to Koontz and O’Donnell: “The managerial function of staffing involves manuring the organizational structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure. ” Staffing is defined as, “Filling and keeping filled, positions in the organizational structure. This is done by identifying work-force requirements , inventorying the people available, recruiting, selecting, placing, promotion, appraising, planning the careers, compensating, training, developing existing staff or new recruits, so that they can accomplish their tasks effectively and efficientl

20. It helps to improve the quantity and quality of the output by putting the right person on the right job. It helps to improve job satisfaction of employees. It facilitates higher productive performance by appointing right man for right job. It reduces the cost of personnel by avoiding wastage of human resources. It facilitates growth and diversification of business. It provides continuous survival and growth of the business through development of employees.

21. Mc Fariand , “The term recruitment applies to the process of attracting potential employees of the company.” Flippo , “Recruitment is the process of searching prospective employees and stimulating them to apply for the jobs in the organization.” Need of recruitment The need of recruitment may arise due to following situations: 1. Vacancies due to transfer, promotion, retirement, permanent disability or death of worker. 2. Creation of vacancies due to expansion, diversification or growth.

22. Selection Selection is the process of choosing the most suitable person for the current position or for future position from within the organization or from outside the organization.

23. CASE STUDY ON DECENTRALISATION AS A TOOL FOR EFFECTIVE FRIENDLY SERVICE DELIVERY

24. Introduction The paper is divided into six parts: Introduction The Background Challenges Strategies Outcomes Conclusion

25. This case study focuses on the use of decentralization in achieving effective service delivery at the Lagos State Local Government Pensions Board. The strategy led to elimination of fatality among the very old pensioners Reduced sharp practices from those exploiting the rowdiness of the centralised verification exercise to perpetuate fraud Hence achievement of more accurate data base for payment of monthly pensions.

26. Background Decentralization in the Public Service has always been a subject of controversy While the proponents have stressed the positive benefits of ensuring efficient service delivery at the grassroots The opponents have argued that the level of institutional development at the grassroots will make decentralization a disaster if the capacity for management at this level is lacking the possibility of mismanagement of such additional responsibilities is very high

27. In a paper titled “The Impact of Decentralization in Service Delivery, Corruption, Fiscal Management and Growth in Developing and Emerging Market Economies: A Synthesis of Empirical Evidence by Anwar Shah, Theresa Thompson and Zeng- Fu Zou, observed myriad of outcomes as a result of implementation of decentralization in many developing countries. In some cases the study revealed negative impact with high perceived corruption and poor service delivery. In some cases the impacts were inconclusive as the local officials may have good understanding of local needs but their responses were inadequate because of procedural, financing and governance constraints. There were also many empirical cases of decentralization with positive impacts leading to increase in transparency, reduction in corruption and successful provision of services that addressed local needs.

28. In theory, decentralization is expected to ensure responsiveness accountability, efficiency and equity. However absence of: Effective Coordination and Capacity to deliver service Stakeholders understanding and support could negate the positive expectations from decentralization. As part of the Public Sector Reforms carried out in Nigeria between 1999 and 2003, a new Pensions Scheme- the Contributory Pension Scheme (Funded by the Government and Contributions by Staff) was introduced. The old Pensions Scheme (Funded by the Government) is expected to continue to decrease until the last beneficiary dies. To ensure accurate data base of Alive Pensioners, there is annual ‘I am Alive’ Verification Exercise

29. CHALLENGES Prior to the 2013 “I am Alive Exercise” the verification exercise was carried out at one location for the over 10000 Pensioners The exercise was always rowdy Cases of fatalities recorded Fraudulent individuals capitalised on the rowdiness to smuggle fake names into the list of cleared pensioners Overloaded monthly pensioners payment by the board The amount released by state government for the Verification Exercise had been decreasing yearly The management was thus faced with the challenge to decentralise to address the rowdiness created by centralization and to find innovative ways to achieve better result in the face of dwindling resources

30. STRATEGIES DEPLOYED TO SOLVE THE PROBLEM A stakeholders meeting was held where agreement was reached to decentralise the exercise in to 12 out of the 57 Local Governments A total of twelve screening panels were constituted excluding staff of the Pensions Board including representatives of the Pensioners Union for the group of Local Government Councils at each venue Since the venue were spread throughout the state, the places of abode of members were taking into consideration in determining their placement on panels to reduce transport allowance and avoid payment of accommodation allowance

31. To implement this change within available budget, the Council Managers (now Heads of Administration) in the selected Local Governments were contacted and they provided canopies, chairs, medical staff and first aid facilities and conveniences The lists of Pensioners for each of the 12 venues were prepared Each List was divided into 8 groups Each group was assigned a day to appear for the verification The last two days of the 10-day exercise were reserved for complaints and those who missed assigned dates A one-day training programme was conducted for the panelists and selected staff of the relevant Local Government used as venue to ensure smooth verification exercise

32. OUTCOMES As a result of the strategies deployed, the exercise recorded no casualty that year. The screening time per Pensioner was reduced in most cases to 5 minutes. The monthly pensioners pay was reduced from average of N210 , 000,000 to N184, 000,000 monthly. The travel distance to the venue was also reduced considerably to less than 2 kilometers. At the end of the exercise not all the funds released to augment the fund provided by the state government for the exercise were utillised. Finally, the Union of Pensioners wrote a letter to commend management for organizing the most effective Verification in the history of the Exercise.

33. Decentralization can be deployed for delivery of customer friendly service is decentralization if carefully managed Through careful coordination of efforts, enlistment of stakeholders support, building the capacity of grassroots officials through joint implementation of service delivery with experienced state officials and training It can be deployed to bring service closer to the grassroots. Public Servants should as much as possible review and evaluate modus operandi to accommodate changes that will improve impact of their service delivery . CONCLUSION

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