It does so in two ways: by creating hierarchical levels, i.e., structural power, and; By dividing work among members resulting in specialization, i.e., functional power. The power of relationshipsis the influence that leaders gain through their formal and Here, we present the pros and cons of delegating authority. Advantages; Disadvantages; Conclusion; Max Weber and His Bureaucracy Theory. A clear chain of command The power of positionis the formal authority that derives from a person’s title or posi-tion in a group or an organization. Tall Structure: – It is such a structure that comprises a great range of hierarchal levels along with narrow spans of control. It highlights specific actions that are undertaken by the employees. Legitimate Power is a formal type of power derived from the position you hold in an organization. Specialization: A bureaucratic organization provides the advantages of specialization because every member is assigned a specialized task to perform. Here are a few causes of workplace politics: People who hold expert power get trust and respect about decisions and opinions from others. Coercive, reward and legitimate power can be categorized in the formal power category. The tyranny of a powerful head can be reduced. Of the five major sources of power, some derive from formal designation, while others come from personal qualities. Decentralization is an important tool for satisfying human needs of power, independence, status and prestige. Subordinates comply because they believe in the legitimacy of your position. Subunit power in the organization is also related to the correlation between a subunit's resources--budget and instructional staffs--and work load over time. 7 advantages and disadvantages of committees for administration and management. Similarly, in a centralized government structure, the decision-making authority is concentrated at the top, and all other lower levels follow the directions coming from the top of the organization structure. Table 2.1 presents the disadvantages and advantages of the power-oriented culture dimension, which reflect the positive and negative effects of this type of culture in an organisation. With a very small amount of capital you can start the business. Companies like a steady rudder, sailing smoothly into uncomplicated futures, but it often doesn't go that way. At the national level, it would be concerned with factors like population, economic development, educational […] When disruptions crash toward them, companies should know there are benefits of organizational change. A person who holds expert power easy to get promoted to senior management. With Legitimate Power it is your position that gives you your power. It is important activity in any business enterprise. Quick and wise decision possible The Third power base is labelled legimate power. Weber believed that there could be only three kinds of power in the organization: Reduces the burden on top executives: Advantages and Disadvantages Of Decentralisation Advantages of Decentralisation Motivation of Subordinates. This power that a manager enjoys is because of the position that he/she hols and is ‘legitimate power.’ Job descriptions make it clear as to who an employee will be reporting to and the team that the employee will be leading, if any. Decentralization improves the level of job satisfaction as well as employee morale, especially amongst the lower level managers.. Decentralization is the break down of this style of organization, where the power is given to the small sectors of the business. Structure: A structure of form is created by specifying the duties and responsibilities and reporting relationships within a command hierarchy. Advantages of expert power Able to influence a person’s behavior in the organization due to the leader’s knowledge and skills related to work being performed. The organization deals with an individual work and interest of an individual. According to Brown (1998, p 67) "the greatest strength of power cultures is Positional power - In an organization with a management hierarchy, a person can hold power based upon their title and rank within the organization. Advantages of Bureaucracy. The sole proprietorship form of business is the most simple and common in our country. It is clear that the degree of decentralisation is less in case of A. There is no fear of delegating too much authority to one individual. The Real Advantages and Disadvantages of Decentralization. 1. Though it may sound harsh, coercive power can also be effective when cutting personnel. Legitimate Power In the event of inferior employees realizing that the superior employer is in power, this is known as legitimate power. Generally this type of power can be quite beneficial in a situation where businesses are threatened or in a crisis. A power structure can be unchannelled for the time being but it must be changed if an organization wishes to survive. In contrast, decentralization involves delegation of responsibility and the associated decision-making powers across various levels in the organization. The Key Advantages and Disadvantages of Delegation of Authority. On the other hand, power-oriented organisations also have a positive side. It has the following advantages: 1. Power is a universal constant: it is needed even to run the most trivial functions of an organization or project. This satisfaction helps in building a cadre of satisfied managers, who feel their responsibility towards company’s work. Advantages of Centralization. The barriers can come in many different forms such as the clarity of the message, the length of the message, the way it is delivered, the way it is interpreted and the feedback that is … Thus, power is a prerequisite for success, irrespective of people’s inner needs for power (Lawrence and Lorsch 1967).While organizational power can keep an organization in check and even spur it to growth and fame, it is equally effective in destroying the organization as well. It helps the managers to measure actual performance and guide it towards the achievement of predetermined goals. The advantages and disadvantages of a hierarchical organizational structure involve communication, innovation, and collaboration. Sometimes there are just too many barriers within an organization for the communication to be effective. Various advantages of human resource planning in HRM are as follows: As manpower planning is concerned with the optimum use of human resources, it can be of great benefit to the organisation, in particular and to the nation in general. Accordingly, there are few rules and not much bureaucracy in a Power Culture because whatever the Chief says, that's the law.Very early stage startups with charismatic leaders tend to be Power Cultures, but you'll find them in other types of organizations as well. Similarly decisions about the matters referred, measure the degree of decentralisation depending upon the power to take decisions vested in an officer without the need of getting consent of somebody else. 2. Advantages of Decentralisation: 1. Instead of spending a lot of time recognizing the fact that a problem does exist, it is best to take immediate action, dealing with conflict. ADVERTISEMENTS: Some of the advantages of managerial control for an organization are as follows: Managerial control is essential to efficient management. The purpose of government decentralization is to take power out of the hands of the few and put it in the hands of the many, thereby giving individual citizens a stronger voice. In an organization, centralized way of making a decision entails less autonomy to everyone except the central leadership. A casual investigation of an organization may show that the organi­zation has a quite rational (autocratic) or demo­cratic power structure. People with this power can build up self confidence in the … This power emanates from the position that one holds in an organization. Furthermore, it strives to satisfy the varying requirements for participation, independence, and status. ... committee helps to avoid the risk of concentration of too much authority in the individual and the danger of abuse of power. 2. Power is concentrated among a few people, and your relationship with that person matters a lot more than your title.. 5. There must be strategies in place to deal with the potential negatives which like to occur under this structure. When talking of power, understand the different advantages and disadvantages of power culture. Flat Structure: – It is such a structure that comprises few hierarchal levels along with broader span of control. It's going into the unknown and confronting new challenges. An effective centralization offers the following advantages: 1. ADVERTISEMENTS: Just as road signals are necessary at a […] The advantages of conflict resolution are like, people belonging to a particular workgroup will naturally learn how to become more productive. The higher up the organizational hierarchy you go the more power … The power of charisma is the influence that is generated by a leader’s style or persona. Easy to Form and Wind up – A sole proprietorship form of business is very easy to form. Centralization vs Decentralization. Tips on Using the 5 Different Types of Power in Management. Advantages of Sole Proprietorship – Top 8 Advantages. For legitimate power to be respected in an organization, the manager should be able and have the experience, expertise and qualifications that the job requires. 6. Therefore, as an action principle, one should ensure the effective uses of the scarcest resources rather than conform to some ideal version of power relations. Max Weber (1864-1920) was a German sociologist and a political economist, and he came forward with the concept of bureaucracy in management. Change is hard. The remaining two types,expert and referent power,are personal powers. In the context of any organisation, be it a company, a charity, or a hobby group, the word "power" refers to management. The organization itself allocates power: The importance of power lies in the fact that the organization itself allocates power to the persons. Concentration is the systematic and consistent reservation of authority in the central hands in the organization. This power is in use, for example, when an employee carries out an order under fear of losing their job or their annual bonus. In most organization settings, the fact that one employee’s is another employee is another employees supervisor means that the supervisor has a … Tweet Some of the major benefits derive from doing proper Manpower Planning are as follows:- Enable the determination of personnel needs of an organization It is an essential component of strategic planning It helps to ascertain and identify critical shortages of skilled staff and take corrective action by timely recruitment, etc so as […] Its implications, are that: decision-making power in regard to planning, organization, coordination and control is reserved in the hands of the top executive; Delegation of authority refers to the transfer of power. Coercive power is defined as the use of force to get an employee to follow an instruction or order, where power comes from one’s ability to punish the employee for noncompliance. While some managers may be wary of it, it has its own advantages. 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