114. Organisation: Hierarchy, Unity of Command, Span of Control, Delegation, Centralisation/Decentralisation, Coordination — Full Notes

CORE Key Points at a Glance

1. 1

   Hierarchy is a graded arrangement of authority in an organisation from the highest (chief executive) to the lowest level, with each level subordinate to the one above. Henri Fayol (1916) called it the scalar chain — the line of authority through which orders flow down and information flows up.

2. 2

   Unity of Command (Fayol, 1916): Each employee should receive orders from one and only one superior. Violating this principle causes confusion, conflicting orders, and diluted accountability. Exception: Functional authority (staff officers) may temporarily cut across this principle.

3. 3

   Span of Control (V.A. Graicunas, 1933): The number of subordinates a manager can effectively supervise. Graicunas' formula: for n subordinates, total relationships = n(2^(n/2) + n − 1). Urwick recommended a span of 5–6 at higher levels; 8–12 at lower operational levels.

4. 4

   Delegation of Authority: The process by which a superior assigns duties, authority, and responsibility to a subordinate. Key principle: Authority can be delegated; responsibility cannot. The superior remains ultimately accountable.

5. 5

   Centralisation: Decision-making authority concentrated at the top level; uniformity, coordination, and crisis management are easier but it can be slow and unresponsive at the field level.

6. 6

   Decentralisation: Distribution of decision-making authority to lower levels or regional/local bodies. In India, the 73rd and 74th Constitutional Amendments (1992) constitutionalised decentralisation by empowering Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs).

7. 7

   Coordination: The process of aligning different units and activities so they contribute to the common goal without duplication or conflict. Mary Parker Follett (1933) identified four principles: early coordination, direct coordination, continuing coordination, and coordination as reciprocal relating.

8. 8

   Line and Staff Organisation: Line agencies directly implement government programmes (district administration, police, revenue); Staff agencies advise and support (Planning Commission/NITI Aayog, Finance Commission). The tension between line and staff is a perennial issue in Indian public administration.

9. 9

   Formal vs Informal Organisation: Formal organisation: officially defined roles, hierarchy, procedures, and authority. Informal organisation: spontaneous relationships, communication networks, and norms that emerge among employees. Chester Barnard (1938): Informal organisation is essential for formal organisational functioning.

10. 10

    Functional Organisation (Taylor): Each worker has several functional specialists as supervisors — each responsible for a different aspect of work. Violates unity of command but allows deep specialisation. Hybrid model: Functional authority (staff officers can issue technical directives to line officers).