9. Misuse of Functional Authority: Perhaps even more perilous to good managing are the dangers
in undefined and unrestricted delegation of functional authority. Functional authority over activities in
other parts of the organisation.
10. Multiple subordination: The principal danger of too great proliteration of functional authority
delegations is the breakdown of unity of command. Multiple subordination results also from faulty
organisation structure and from instances of plural executives. It tends to cause confusion undermine
the definiteners and effectiveness of authority, and thereaten organisational stability.
11. Misuse of service Departments: People in line departments, regard a service department as
relatively unnecessary, unimportant, and therefore something to be ignored when possible. The
greatest misuse of service departments is summed up in the words “efficient inefficiency”. When
managers establish service departments, looking more to their cost savings than to the efficiency of
the entire enterprise, a highly “efficient” service may do an inefficient job of serving.
12. Overorganisation: Over organisation usually results from failure to put into practice the concept
that the activity - authority structure of the enterprise is merely a system for efficient performance of
people.
11.9 SUMMARY To conclude, organisation as a process refers to the act while organisation structure refers to the
accomplished act. It is the process of creating a structure by grouping the activities of an enterprise
and establishing authority, responsibility and relationship among the specialists for the attainment of
defined objectives. It stimulates independent, creative thinking and initiative through well - defined
areas of work.
11.10 KEY WORDS Authority
:
Right or command thought
Responsibility
:
Accountability
Delegation
:
Empowering to act for another
Bromide
:
Tiresome person
11.8
Centre for Distance Education Acharya Nagarjuna University
