Reasons for Delegation of Authority

1
Reasons for Delegation of Authority

• Delegation is necessary to get the work done
• Delegating authority can develop management
  talent in the organization
• Delegating authority can keep employees engaged
  and excited about their work by assigning them
  increased responsibility

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• Span of controlIncreasing number of
  relationships between manager and subordinate,
  between subordinate and subordinate, and between
  manager and various combinations of subordinates.
• Span of managerial responsibilityThe number of
  persons with whom the manager routinely
  interacts, that is, the number who have direct
  and unhindered access to the manager.
• Unity of commandEveryone has just one boss. This
  notion is generally sound, but reality is more
  complicated.

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Five Common Bases for Dividing the Work into
Departments

• Function
• Product or service
• Geography
• Customers
• Process

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4
Issues in Organizing

• Functional staff authority
• Increasing the span of control Empowering
  managers
• Committees
• Bureaucracy
• Ad hocracy

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Advantages and Disadvantages of Committees

• Advantages
• Allow a number of different interests to gain
  representation
• Coordinate plans and transfer information
• Committee membership by junior management
  provides an opportunity for management
  development
• Build morale when everyone is consulted, no one
  is offended
• In some cases, committees serve as a motivational
  tool by allowing all participants to be involved

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Advantages and Disadvantages of Committees

• Disadvantages
• Tend to consume a great deal of time
• Often avoid action rather than take it, and they
  can be used to avoid or shift responsibility for
  unpopular or risky decisions
• Often encourage compromise

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7
Business Aspects of a Large Casino Resort Hotel

• Casino resort hotels
• Gambling centers
• Convention centers
• Entertaining and dining centers
• Stage shows

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Markets Catered to by Resort Hotels

• Casual visitors
• Convention guests
• Junketeers

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