Chapter Three

Functions of Public Administration

The broad definition of public administration presented in Chapter One indicates that it
involves several processes and performs major functions aimed at achieving
organizational/governmental goals. Public administration as a dynamic and ongoing
activity entails knowing the processes how to perform its broad functions in terms of
Planning, Organizing, Staffing, Directing, and Controlling (POSDC) known as the
"management process in public administration". In some literatures, we may find also
Reporting and Budgeting, being included as separate functions of public administration.
Since these functions or management processes of public administration are crucial to
effective administration, the brief descriptions of each of these are presented below.
3.1 planning function
Planning is the keystone of the arch of the program management, and government
success is often synonymous with planning success. As will be explained shortly
planning covers a far wider spectrum of meanings that can be encompassed in this
chapter. The essence of planning is to see opportunities and threats in the future and to
exploit or combat them by decision taken in the present. Planning determines the limits of
government responsibility, the allocation of resources and the distribution of costs, the
division of labor, and the extent of public controls. The magnitude of some current
problems such as pollution of air and water, exploitation of natural resources, and decline
in the quality of urban life are related to our inability to plan effectively.
3.1.1 Definitions
According to dictionary of public administration planning is the process whereby
governments attempt to anticipate and prepare for future needs and developments.
Planning is a management or administrative process or function that involves setting
goals and deciding how best to achieve them. This function also includes considering
what must be done to encourage necessary levels of change and innovation. Barber
defines planning as "an activity that concerns with proposals for the future, with the
evaluation of alternatives and with the methods by which these proposals may be
achieved".

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Planning is the primary (first) administrative or managerial function that sets the stage
for other functions. It is a process of deciding exactly what one wants to accomplish and
how to best go about it before action is required. When planning is done well, it creates a
solid platform for further managerial efforts of other functions.
Planning is the dynamic process of making decisions today about future actions; and it is
a selection or choice among alternatives as to: What missions or objectives be achieved,
what actions should be taken, what organizational positions be assigned, how the end can
be achieved, when to achieve it, who is to do it, Where to do it. It bridges the gap
between where we are now and where we want to be.
Planning is a continuous process so far as the organization is in operation. The more
continuous the planning is, the higher its efficiency of the organization.
Planning is a means to an end. Planning is not an end by it self. It is a means to an end
(meeting objectives). Planning is an instrument that pushes people towards the
achievement of objectives.
Planning is preparing today for tomorrow; it is the activity that allows one to determine
what they want and how to get it: They set goals and decide how to reach them. Planning
focuses on the future: what is to be accomplished and how. Answers six basic questions
in regard to any intended activity:
 What (the goal or goals).
 When (the time frame in which it will be accomplished)
 Where (the place or places where the plans or planning will reach its conclusion).
 Who (which people will perform the tasks).
 How (the specific steps or methods to reach the goals).
 How much (resources necessary to reach the goals).
Planning is an essential activity for any organization that wants to survive by achieving
its objectives. Otherwise the old management dictum (saying), "failing to plan is
planning to fail" still holds true.
Planning is indispensable to the administrative process as any decision and consequent
activities carried out to achieve objectives of that decision will limit the range of choices
available for the administrator in the future owing to the limited nature of resources. The
basic requirement in planning is that of coordination in order that contradiction of goals

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between various groups involved in the plan is avoided, which in turn is possible if there
is an overriding goal to which all groups are working.
In order to be effective, planning must be concerned not only with materialistic ends but
also with human behavior, which may inhibit the achievement of the goals. Therefore,
any planning process must attempt to rationalize and take into account possible resistance
from implementers and dynamics and unforeseen circumstances (uncertainties).
In general terms, planning may be carried out through specialized planning units (staff)
or through units of government, which at the same time perform other functions.
Planning staff is a small group of individuals who assist top-level managers in
developing the various components of the planning process. However, whichever type of
unit is utilized, it is necessary that planning should take place at a level where there is
responsibility for the achievement of some overriding social policy, and thus there is a
natural tendency for the level of integration of planning to exist in the administrative
structure.
Planning is of different nature in terms of scope, time, and objective and by whom it is
prepared. For example, indicative planning is prepared by central authorities that lay
down the expected performance of the economy in the immediate and medium-term. The
target gives all the other decision-making units a framework within which to make their
own plan.
Planning involves selecting missions and objectives and the actions to achieve them; it
requires decision-making, which is, choosing from among alternative future courses of
actions. Managers who develop plans but do not commit themselves to action are simply
wasting time. The outcome of the planning function is a plan, a written document that
specifies the courses of action a firm will take.
Planning is reasoning about how an organization will get where it wants to go. Its essence
is to see opportunities and threats in the future and to exploit or combat them by decisions
taken in the present.
When a government attempts to influence what kinds of goods and services will be
produced, and in what amounts, it is engaged in national planning. The governments of
developing nations of Asia, Africa and Latin America attempt to set out the chief
measures they need to take in order to raise national output per person. This is

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development planning. The typical development plan will include: survey of current
economic conditions and current social situations, an evaluation of preceding plan, a
statement of objectives, estimates of growth, suggested measures to raise growth rate, a
program of government expenditures.
3.1.2 Types of plan
Policy: is a general guide that specifies the broad parameters with in which organization
members are expected to operate in pursuit of organizational goals. Policies are general
statements or understandings which guide or channel for thinking and actions in decision-
making to achieve organizational objectives. Policy is the statement of goals and of the
relative importance attached to each goal. It is translated in to plan by specifying the
objectives to be attained.
Programs: A proposed set of specific actions intended to implement a plan is called a
program. The crucial differences between the terms policy plan and program is level of
generality. More specifically an increasing number of writers suggest that the term policy
should be reserved for statements of intention and direction of relatively higher order.
Programs are a complex of goals, policies, procedures, rules, task assignments, steps to
be taken, resources to be employed and other elements necessary to carryout a given
course of action. A program is a comprehensive plan that coordinates a complex set of
activities related to a major non-recurring goal. A program may be as large in scope as
placing a person on the moon or as comparatively small as improving the reading level of
fourth grade students in a school district. Whatever its scope, it will specify many
activities and allocations of resources with in an overall scheme that may include such
other single use plans as projects and budgets. A program may be repeated with
modification but not as it is.
Projects: are plans that coordinate a set of limited scope activities that do not need to be
divided in to several major projects in order to reach a major non-recurring goal. Projects
are the smaller and separate portions of programs. Each project has limited scope and
distinct directives concerning assignments and time. Each project will become the
responsibility of designated personnel who will be given specific resources and
deadlines.

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Budgets: is a statement of financial resources set a side for specific activities in a given
period of time. It is a statement of expected results expressed in numerical terms. Budget
is a single use plan that commits resources to an activity over a given period of time. It
may be expressed in Birr, worker hours, and units of product, machine hours, or any
other numerically measurable term. It may be referred to as a “numerated” program.
Budget is also a control device. However, making a budget is clearly planning.
Rules: spell out specific required action or non-actions, i.e., actions that must be or must
not be taken, allowing no discretion in a given situation; for example "No smoking",
"cheating is prohibited". Rules are unlike procedures in that they guide action without
specifying a time sequence.
The difference between rule and policy is that the purpose of policies is to guide
decision-making by marking off areas in which managers can use their discretion, while
rule doesn't allow discretion in its application, although rule also serve as guides. Rules
are the most explicit of standing plans and are not guides for thinking or decision-
making. Rather, they are substitutes for them. The only choice a rule leaves is whether or
not to apply it to a particular set of circumstances.
Procedures: are statements that detail the exact manner in which certain activities must
be accomplished. They put the precise order of activities to be carried out to do a task and
thus, procedures are chronological sequences of required actions. They provide detailed
step-by-step instructions as to what should be done.
When we compare the above three, policies, procedures and rules, we can understand that
all are alike in the sense that they are directives to guide people’s behavior to the desired
ends and they are plans, which are to be followed in the future. Conversely, procedures
and rules are different from policies in that the former are guides to actions while the
latter are guides to thinking. So, procedures and rules render no freedom and hence
should be used when we want to discourage initiative or repress thinking. But, policies
must permit freedom with in limits and hence are used when people’s involvement,
participation or initiative is desired.
Though both rules and procedures repress (inhibit) thinking, they are different. Unlike
procedures, rules (1) guide actions with out specifying a time sequence (2) spell out that a
certain action must or must not be taken. Procedures, however, specify a time sequence.”

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In fact a procedure may be looked upon as a sequence of rules. A rule, however, may or
may not be part of a procedure”

3.1.3 The formal planning model

1. Identify the problem or problems to be solved and opportunities to be seized upon
2. Design alternative solutions or courses of action (i.e. policy plan program) to
solve problems, or seize upon the opportunities and forecast the consequences and
effectiveness of each alternative.
3. Compare and evaluate the alternatives with each other and with the forecasted
consequences of unplanned developments, and choose the alternative whose
probable consequences would be preferable.
4. Develop a plan of action for implementing the alternative selected including
budgets, project schedules, regulatory measures, and the like.
5. Maintain the plan on current basis through feedback and review of information.
Although these steps are treated separately, and in linear sequence, in actual practice they
represent a cyclic process. Evaluation procedures for example, enter in to the process at
the outset in the identification of the problems and opportunities; they also influence the
design of alternative solutions. Like wise the problems of implementation enter in to the
design stages at the constraints that must be taken in to account. For this reason, it is
probably preferable to present the model not as a list of steps but as a dynamic and
iterative process.
Fundamental
Socioeconomic
purposes

Policy Medium range Programming Evaluation

Values of planning planning technical level
administrators normative strategic level
and politicians level

Discovery of
opportunities
and problems

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The premises are underlying foundation of any government effort. The first, fundamental
organizational socio economic purposes; refers to those underlying ends that society
expects from its governmental institutions. Basically this means that society demands that
governments utilize the resources at their disposal to satisfy the wants of the society. It is
important to administrators to keep in mind this underlying reason for the existence of
government.
The second fundamental sets of foundations for planning are the values of top
administrators; for example equity, efficiency participation and the like. Here the values
of the elected officials are also important in policy decisions.
A cardinal purpose of planning is to discover future opportunities and make plan to
exploit them. Like wise a basic to planning is the detection of obstruction or problems
that must be removed from the road ahead. The essence of planning is to make present
decisions with the knowledge of their future consequences. Hence, planning requires the
knowledge of the future. What do we have today if we want to be in a particular place in
the future?
Discovering future opportunities are more than good forecasts. The effective planner
must also be able to discern clearly and accurately what the problem is. As the French
novelist, Georges Bernanas once wrote, the worst, the most corrupting, of lies are
problems poorly stated.
Policy planning
Policy planning is the process of determining goals and their priorities. It is at this point
in the planning process that the influence of political leadership is essentially important.
While plans need to have a great deal of flexibility to allow for changes in sentiment, new
information, and unforeseen problems and opportunities, objectives need to be relatively
fixed and highly specific. They become the emotional symbols, the universally visible
targets that attract and hold political supports. They can also become the catalyst that
mobilizes the resources and encourages whole new techniques by capturing the
imagination, the commitment and the dedication of both those who will support the
program and those who will actually do the work.

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Medium range planning
Policy is only intentions, unless it is transformed in to action. At this stage in the planning
process, detailed, coordinated and comprehensive plans are made for an agency to deploy
the resources necessary to attain the goals laid down in the policy planning stage.
Planning at this stage is concerned in particular with two aspects: the design of
alternatives and the analysis of each alternative in terms of its consequences. Effective
planning calls for a multiplicity of inputs to achieve this multiplicity; the planner must
studiously avoid becoming the captive of any one group of advisor or experts. For
example in dealing with welfare problem the following may be alternative solutions.
o Raising the income of the poor
o Narrow the disparities among states in the benefit levels
o Reduce inequalities in treatment of different types of poor people
o Increasing incentives to encourage work and so on.
After an adequate list of alternatives is developed, the next step is to consider their
consequences.
Programming
The planning process began, when goals are set and policies are established. That step
then merged in to a consideration of alternatives and their consequences. At this stage in
the planning process, alternatives are divided in to specific targets that need to be met and
actions that to be taken in order that objectives are attained. At this point in the process,
money must be set aside or budgeted for these programs or actions. Program is an action
initiated in order to secure objectives whose attainment is by no means certain without
human effort.
Evaluation
The last stage in our basic model is evaluation. It is axiomatic that effective planning
requires periodic review to ensure not only the plans are being carried out in prescribed
manner but also that they are achieved the expected results.
An axiom of an administration not always honored. This task, in turn, requires that the
out put of public services be measured. The feedback plays a decisive role in the
evaluation process. Feedback allows the policy maker to make adjustments in the policy

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according to how well or poorly it has been working and according to changes in the
environment. If panning takes place without feedback, organizations will continue to
perform outdated tasks.
Strengths and weaknesses of formal planning model
The formal model alerts the administrator to the need to translate the lofty goals in to
concrete actions. To speak always of goals is to ensure that nothing will be accomplished.
The second thing the formal model helps guarantee is that priorities will be set and
adhered to. Without concentration on priorities, effects will be diluted over several
objectives and squandered in areas where the payoff is low.
The other thing that the formal model can do is remind the administrator that structure
follow the strategy that is, designing an effective organization should occur after goals
have been set. Not all organizational structures are equally well suited to accomplishing a
particular goal.
Another equally important aspect of formal model is that it alerts the administrator to the
ever-present need to analyze, experiment, or evaluate to see what workers before
launching a program on a ground scale.
Another strong side of formal model is that it highlights the vital and continuing role of
feedback in the planning process. Only if the organization continuous to learn through
feedback can its performance improve and can it know when to abandon programs and
activities that are no longer producing results.
More over the formal model reminds administrators that they must periodically scan their
environments for new threats and opportunities, which is to say, formal planning systems
force operating administrators to extend their time horizons and see their work in a larger,
dynamic framework. Hennery Kissinger (1979) puts it well: “The analysis of where one
is overwhelms the consideration of where one should be going. Serving the machine
becomes a more absorbing occupation than defining the purpose.”

But against these strengths we must weigh several weaknesses. The formal model
suggests that executives should announce explicit goals. Once top administrators
announce their goal those goals are difficult to change; the administrators’ egos and those
of the peoples supporting the programs become identified with them. To change the goal

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is to admit for error. Thus government plunges ahead with obsolete military, energy and
social programs.
Another shortcoming of our formal model is that it fails to account for the politics within
and outside the organization.
3.1.4 Logical incrementalism
A kind of logical incrementalism usually dominates policy planning in the world of
public administration. The process is both logical and incremental. Like the formal model
it begins with needs that may only be vaguely sensed at first. But do not followed
articulation of specific goals; rather, managers will steadily build within the organization,
support and eventually commitment to the new goals.
3.1.5 Forecasting
Forecasting is a critical planning ingredient. To plan is to make assumption about the
future. Unfortunately, assumptions are usually made semiconsciously but if articulated,
they would sound something like this: “tomorrow will be like today, only more so.”
A forecast is a probabilistic statement, on a relatively high confidence level, about the
future. A prediction in contrast, is non probabilistic statement. Forecasting provides a
means of discovering and articulating the more important opportunities and problems in
the future. Further it provides a systematic method for estimating the trajectory likely to
be produced by contemplated or existing governmental programs.

There are a number of forecasting methods. The expert forecast is the oldest and the
most intuitive of the methods. Here if one wants to know what is likely or unlikely to
happen, one simply goes to the expert. Another technique of forecasting is trend
extrapolation. This technique is used, based on the assumption that trends established in
recent history will continuo in the future. Graham T. M. Molitor’ schema of
forecasting is one of the most fascinating methods of forecasting in public policy change
through leading indicators. By monitoring events, intellectual elites, literature,
organizations and political jurisdiction, the policy analyst can develop a better idea of
what to expect in the future. Inherent to all planning is the problem of unexpected
consequences. Impacting assessment techniques concern about how a proposed action
might affect the quality of human environment.

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3.1.6 Decision making
Decision making means the process of selecting one course of action from various
alternatives. As such it cannot be divorced from the planning process. There is at least
four stapes in decision making process.
 Identifying the problem or opportunity
 Gathering information
 Making the decision
 Communicating and implementing the decision.

Identifying the problem

Effective decision makers know that very few problems or events are unique. Most of the
events are the manifestation of underlying problems. If a patient complains, on separate
visits, of increased thirst, itching, hunger, weight loss, weakness and nausea, the
physician does not simply try to remedy each on an ad hoc basis but rather asks what this
problem might be a symptom of. Administrators often find them selves’ treating
symptoms rather than establishing rules or principles that remove the rout cause. Good
administrators avoid cosmetic solutions. Stronger locks, higher (perhaps electrified)
fences, and more powerful police weapons can, for example, reduce the symptoms of the
crime without affecting the real causes. Most of the problems are generic rather than
unique.
Gathering facts
With the problem accurately defined the administrator then turns to framing the response.
Careful attention should be given to the following limits
 Permissibility (is it legal? Will other accept it?)
 Available resources
 Available time
 Privies commitments
 Available information
 Strategic factors

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In gathering facts, it is generally a good idea to consult those who will be most affected
by the decision. Consulting people is important to check your facts with theirs and, above
all, listen to what they would say.
Making the decision
After gathering facts and suggestions, the decision makers should be ready to begin
assessing the various alternatives. In this section, we shall consider two analytical
techniques that can help the administrator in the critical task.
 Cost-benefit analysis
 Multi objective model
Cost benefit analysis
In an era of scarcity, interest in weighing cost against benefits rises. Today the federal
government must do more than asses the benefits of goals such as cleaner
environment, safer products, healthier working conditions, and better mass transit; it
must also weigh the cost and other side effects of such action. Most of cost-benefit
analysis involves familiarity with certain elements: the measurement of costs and
benefits, discount factors and decision rules.
Discount factor is used to reduce future dollars to be comparable to today’s dollars.
The measurement of costs and benefits may cover the following points.
How much are the total costs and the total benefits
Who are the potential and actual beneficiaries?
What are the benefits of the project in the short run and the long run?
What is the opportunity cost of the project?
How much benefits can be gain from a given expenditure (cost effectiveness)
Multiple objectives
One limitation of CBA is that it accounts for only one objective, usually an aggregate
of all accrued benefits in dollar terms. For that reason, the decision makers might
want to either replace or supplement it with a newer technique that emphasizes
multiple objectives. Alternative projects are ranked according to their importance
based on each criterion.

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Communicating and implementing the decision
3.1.6 Characteristics of a good plan
Every sound business plan must have the following characteristics:
Objectivity: Planning should, first of all, be based on objective thinking. It should be
factual, logical and realistic. It should be directed to achieving organizational goals rather
than personal objectives.
Futurity: Since a plan is a forecast of some future action, it must have the quality of
futurity; otherwise, it has little value as a basis for future action. If a plan is to be
effective, it must foresee with reasonable accuracy the nature of future events affecting
the industry and the firm. The inability to foresee future events, a human limitation that
we cannot overcome, is the week link in planning process.
Flexibility: Because no one can foresee the future, plans must be flexible. They must
adjust smoothly and quickly to changing conditions without seriously losing their
effectiveness. The more difficult it is to predict the future, the more flexible the plans
must be.
Stability: Stability doesn't contradict with flexibility. A stable plan will not have to be
abandoned because of long-term changes in the company’s situation. It may be affected
by long-range developments, but it should not be changed materially from day to day.
Comprehensiveness: A plan must be comprehensive enough to provide adequate
guidance, but not so detailed as to be unduly restrictive. It should cover everything
required of people, but not in such detail that it inhibits initiative.
Simplicity and clarity: Although a good plan must be comprehensive, it should also be
simple. A simple plan seeks to attain its objective with the fewest components, forces,
effects and relationships. A plan should not be ambiguous. Lack of clarity makes
understanding and implementation difficult.
Action-oriented: Good planning helps us proactive to stay rather than reactive to things
because it makes more:
 Result-oriented- creating a performance-oriented sense
 Priority-oriented- making sure that the most important things get first attention
 Advantage-oriented- ensuring that all resources are used to the best advantage

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  Change-oriented- anticipating problems and opportunities, so they can be best
dealt with.

3.2 Organizing
Planning cannot be separated from organizing. If people are to work together effectively
in implementing plans, making decisions, and controlling operations they need to know
the part they are to play in the total endeavor and how their roles is basically the
managerial function of organization. To design and maintain these systems of roles is
basically the managerial function of organization.

Organizing is the grouping of activities necessary to attain objectives, the assignment of

each grouping to a manager with authority to supervise it, and the provision for
horizontal and vertical coordination in the agency structure (Koontz &O’Donnel, 1974).
Organizing - is also the process of determining authority dispersion, determining the
extent of power centralization or decentralization, or power sharing among organizational
units, which in turn determines the span of management or control
Organizing is essentially the division of functions among peoples. It is establishing the
internal organizational structure. The division of functions and allocation of
responsibilities could be both vertical and horizontal. The nature and style of the
organizational structure; i.e. vertical and horizontal structure reveals the extent of the
concentration of power in the organization, the former inclines to centralization of power
while the later is more likely to share power and to make decisions together. The
philosophy of hierarchy depends upon the nature of the organization.
3.2.2 THE ORGANIZING PROCESS
The starting point in organizing is knowing the objectives clearly that makes the
identification of activities needed clear and simple. Here we ask what works or activities
are necessary to accomplish the identified organizational objectives. Creating a list of
tasks to be accomplished begins after the objectives that are going to be accomplished are
clearly identified. This identification of specific activities needed is called division of
labor.

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The second step in organizing is grouping of activities necessary to attain objectives. The
series number of activities listed and/or identified must be grouped together. That is, this
involves grouping together of activities in accordance with similarities (homogeneity) of
the activities, interdependence, job characteristics or any other grouping criteria, and this
results in departments and the process is called departmentation. Grouping of similar
activities is based on the concept of division of labor and specialization.

The third step in organizing process is assigning group of activities and delegating the
appropriate authority. Management has identified activities necessary to achieve
objectives has classified and grouped these activities in to major operational areas. The
activities now must be assigned to individuals who are simultaneously given the
appropriate authority to accomplish task.
Provision for coordination/Design a hierarchy of relationships is the final step in the
process of organizing. This step requires the determination of both vertical and horizontal
operating relationships of the organization as a whole. The vertical structuring of the
organization results in a decision-making hierarchy showing who is in charge of each
task, of each specialty area, and the organization as a whole. Levels of management are
established from bottom to top in the organization. These levels create the chain of
command, or hierarchy of decision-making levels, in the company.
The horizontal structuring has two important effects.
1. It defines the working relationships between operating departments
2. It makes the final decision on the span of control (the number of subordinates under
the direction of each manager).
The result of this step is a complete organization structure. An organization chart shows
this structure visually. While developing organizational structure, managers make a
variety of decisions; especially they decide division of labor, delegation of authority,
departmentation, span of control, and coordination.
(A) Division of labor

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When joint accomplishment of a grand task is the goal of many people, this overall task
must be split in to its component jobs and apportioned among the people involved. It is
only after these jobs are correctly done that the grand task can be achieved.

The degree to which the grand task of the organization is broken down and divided in to
smaller component parts is referred to as division of labor. Division of labor is performed
in light of organizational objectives. It begins by determining (sub tasks) called jobs that
are necessary to accomplish the identified objectives. These sub tasks could include
ongoing tasks which are part of the regular routine for running any business such as
hiring and record keeping or tasks unique to the nature of the business; such as
assembling, machining, storing, inspecting, selling, advertising, computer programming.
After determining the sub tasks, sub tasks will be defined by enumerating the activities
that each individual sub tasks would entail in terms of what the incipient sub task
performer is expected to do. This is called job description. Job description is an account
of activities what the sub task performer is expected to perform and the associated
authority and responsibility relationships among jobs.
The sub task assigned to the sub task performer is called job. Thus by doing so
individuals specialize in doing part of the task rather than the entire task, i.e., division of
labor in effect is the assignment of various portion of a particular task among
organizational members. In short, division of labor involves:
 Breaking down a task in to its most basic elements
 Training workers in performing specific duties
 Sequencing activities so that one person's efforts build on another's.
(B) Delegation of Authority
Authority - is the right to commit resources (that is, to make decisions that commit
an organization’s resources), or the legal (legitimate) right to give orders (to tell some
one to do or not to do something). It is the right to make decisions, carry out actions, and
direct others in matters related to the duties and goals of a position. It is the formal right
of a superior to command and compel his subordinates to perform a certain act. All
managers in an organization have authority. It provides the means of command.

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Generally level of authority varies with levels of management. Higher-level managers
have greater authority, with ultimate power resting at the top. Authority decreases all the
way to the bottom of the chart, where positions have little or none. Authority is vested in
a manager because of the position he/she occupies in the organization, that is why we
say, “authority comes with the territory.”

The person who occupies the position has its formal authority as long as he/she remains
in the position. As the job changes in scope and complexity, so should the amount and
kind of formal authority possessed. Even though a manager has formal or legitimate
authority, it is wise to remember that the willingness of employees to accept the
legitimate authority is a key to effective management. Chester Bernard called this
Acceptance Theory of Authority.

Delegation of Authority - is the down ward pushing of authority from superiors to

subordinates to make decision with in their area of responsibilities. It is the process of
allocating tasks to subordinates, giving them adequate authority to carry out those
assignments, and making them obligated to complete the tasks satisfactory. Delegation is
a concept describing the passing of formal authority to another person. It is the
assignment of part of a manager’s work to others, along with both the responsibility and
authority necessary to achieve expected results.

Delegation is necessary for an organization to exist. Just no one person in an enterprise

can do all the tasks necessary for accomplishing a group purpose, so is it impossible, as
an enterprise grows, for one person exercise all the authority for making decisions.

In delegating authority a manager doesn’t surrender his power because he does not
permanently dispose of it; delegated authority can always be regained. This is called
recovery of delegated authority. Reorganization inevitably involves some recovery and
relegation of authority. In a shuffle in an organization, rights are recovered by the
responsive head of the firm or a department and then relegated to managers of new or
modified departments.

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The Process of Delegation
Delegation of authority has the following steps.
Assignment of tasks
Specific tasks or duties that are to be undertaken are identified by the manager for
assignment to the subordinate. The subordinate is ten approached with the assignment.
Delegation of authority
In order for the subordinate to complete the duties or tasks, the authority necessary to do
them should be delegated by the manager to the subordinate. A guideline for authority is
that it be adequate to complete the task - no more and no less.
Acceptance of responsibility
Dispensability is the obligation to carryout one’s assigned duties to the best of one’s
ability. It is the obligation created when some one accepts task assignments together with
the appropriate authority. Responsibility is not delegated by a manager to an employee,
but the employee becomes obligated when the assignment is accepted. The employee is
the receiver of the assigned duties and the delegated authority; these confer responsibility
as well.
Creation of accountability
Accountability is having to answer to some one for your results or actions. It means
taking the consequences - either credit or blame. It is the requirement to provide
satisfactory reasons for significant deviations from duties or expected results. When the
subordinate accepts the assignment and the authority, he or she will be held accountable
or answerable for actions taken.
A manager is accountable for the use of his/her authority and performance. The manager
is also accountable for the performance and actions of subordinates. The manager should
take the time to think through what is being assigned and to confer the authority
necessary to achieve results. The subordinate, in accepting the assignment becomes
obligated (responsible) to perform, knowing that he/she is accountable (answerable) for
the results.

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The Importance of Delegation
1. It relives the manager from his/her heavy workload.
Delegation frees a manager from some time consuming duties that can be adequately
handled by subordinates and lets the manager devote more time to problems requiring
his/her full attention (lets the manager concentrate on strategic issues).
1. It leads to better decisions: Since subordinates are closer to real “firing line”
activities and problems than superiors, they have more realistic information and
better understanding. The realistic information that subordinates have may lead
them to make better decisions.
2. It speedup decision-making: Decisions made by lower level managers usually are
timelier than those that so through several layers of management.
3. It helps subordinates to train and builds moral: Subordinate managers can reach their
full potential only if given the chance to make decisions and to assume responsibility
for them.
4. It encourages the development of professional managers: Had there not been any
delegation, professional managers wouldn’t have been produced.
5. It helps to create the organization structure: If there were no delegation of authority
is an organization, there would exist only the president/CEO/ Top-level manager.
And an individual cannot create an organization.

The terms centralization and decentralization refer to a philosophy of organization and

management that focuses on either the selective concentration (centralization) or the
dispersal (decentralization) of authority with in an organization structure. Centralization
or decentralization is a relative concept when applied to organizations. They are
tendencies of delegation of authority.

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Factors determining the delegation of
authority
Managers cannot ordinarily be for or against decentralization of authority. They may
prefer to delegate authority, or they may like to make all the decisions. Some factors that
affect the degree of centralization or decentralization- delegation of authority- are:
1. The history and culture of the organization
Whether authority will be decentralized frequently depends upon the way the business
(organization) has been built. Those enterprises that, in the main, expand from with in
show a marked tendency to keep authority centralized. On the other hand, enterprises that
result from mergers and consolidations are likely to show, at least first, a definite
tendency to retain decentralized authority. In other words, Organizations, which were
centralized or decentralized at their establishment, tend to centralize and decentralize
authority to repeat what they have done before. When centralized organization is
changed in to decentralization and the vice versa people feel discomfort.
2. The nature of the decision
The costlier and the riskier the decision is, the more centralized the authority will be.
Cost may be reckoned directly in dollars and cents or in such intangibles as the
company’s reputation, its competitive position or employee morale. The fact that the cost
of mistake affects the decentralization isn’t necessarily based on the assumption that top
managers make fewer mistakes than subordinates.
They may make fewer mistakes, since they are probably better trained and in possession
of more facts, but the controlling reason is the weight of responsibility. Delegating
authority is not delegating responsibility; therefore, managers typically prefer not to
delegate authority for crucial decisions.
3. Availability and ability of managers (LLMs)
A real shortage of managers would limit decentralization of authority, since in order to
delegate, superiors must have quantified managers to whom to give authority. In addition
to the availability of LLMs the quality of the existing LLMs, (subordinates) has impact
on centralization or decentralization.

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4. Management philosophy
The character and philosophy of top executives have an important influence on the extent
to which authority is decentralized. Sometimes top managers are despotic, tolerating no
interference with the authority they jealously hoard. At other times, top managers keep
authority not merry to gratify a desire for status or power but because they simply cannot
give up the activities and authorities they enjoyed.
5. Size and character of the organization
The larger the organization, the more decisions to be made, and the more places in which
they must be made, the more difficult it is to coordinate them. These complexities of
organization may require policy questions to be passed up the line and discussed not only
with many managers in the chain of command but also with many managers at each level,
since horizontal agreement may be as necessary as vertical clearance.
Slow decisions - show because of the number of specialists and managers who must be
consulted - are costly. To minimize the cost, authority should be decentralized wherever
feasible. Also important in determining size is the character of a unit. For
decentralization to be thoroughly effective, a unit must possess a certain economic and
managerial self-sufficiency.
6. Geographic dispersion of operations
Geographic dispersion of operations makes decentralization more necessary because top
executives frequently find it impossible to keep abreast of the details of what is going on
at various locations. Moreover, managers on site may be in a better position to assess
local situations and make appropriate decisions.
7. Environmental uncertainty
Environmental uncertainty tends to produce a need for more decentralization. In this case,
the fast pace of change interferes with top management’s ability to assess situations with
the speed necessary to make timely decisions.
Problems in Effective Delegation
In spite of the advantages, many managers are reluctant to delegate authority and may
subordinates are reluctant to accept it. Both these barriers hinder effective delegation.

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Reluctance to delegate/Problems from Managers
There are a number of reasons that managers commonly offer to explain why they do not
delegate. Some are:
1. Fear of loss of power - if the subordinate does too good a job. Some managers’ fear
when they delegate authority because they expect that they will be substituted/replaced
by their subordinates if subordinates have got the experience and skill of decision-
making.
2. “I can do it better myself” fallacy: Some managers have an inflated worth of them
selves and think that they do everything better than their subordinates.
3. Lack of confidence in subordinates: There perception of managers that my
subordinates just are not capable enough” When managers delegate authority to their
subordinates they do not also delegate responsibility. That is, managers are accountable
for the actions of their subordinates and may fear the blame if subordinates fail, if
subordinates lack knowledge and skill.
4. Fear of being exposed: Some managers fear that their subordinates do too good job
as compared with themselves i.e. feel threatened that competent subordinates may
perform too well and possibly make the manager look poor by comparison.
5. Difficulty in briefing: Many times managers are reluctant to delegate authority if they
conclude that the time for briefing is more than the time for decision-making or if they
believe they lack the time to train subordinates. “It takes too much time to explain what I
want done”.
Reluctance to Accept Delegation/problems from subordinates
1. Fear of failure and criticism: Subordinates who fear criticism or dissemble for
mistakes are frequently reactant to accept delectation. The solution for this problem
can be teaching subordinates when they make mistakes than criticizing or dismissing.
2. Subordinate may believe that the delegation increases the risk of making mistakes but
doesn’t provide adequate rewards for assuming greater responsibility.
3. Lack of incentive or reward for assuming a greater workload. Accepting delegation
frequently means that they will have to work harder under greater pressure. Without
appropriate compensation subordinates may be unwilling to do so.

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4. Lack of adequate information and resources. If subordinate managers think that they
don’t have enough factual information on which to base a decision or other resources
necessary to carryout the assigned duties, they tend to decline/reject accepting
authority delegated. If subordinates are already overworked.
5. Lack of self - confidence
6. Believing / Thinking that decision-making is the boss’s job.
Authority Relations in Organization (Line, Staff, Functional)
In an organization different types of authority are created by the relationships between
individuals and between departments. There are three types of authority.
Line Authority: Defines the relationship between superior and subordinate. It is a direct
supervisory relationship. It exists in all organizations as an uninterrupted score or series
of steps. In line authority, a superior exercises direct command over a subordinate. Line
authority is represented by the standard chain of command that starts with the most
superiors and extends down though the various levels in the hierarchy to the point where
basic activities of the organization are carried out.
Staff Authority - is advisory in nature. The function of people in a pure staff capacity is
to give advice, expertise, technical assistance, and support to help line managers to work
more effectively in accomplishing objectives. Advisory authority doesn’t provide any
basis for direct control over the subordinates or activities of other departments with
whom they consult (With in the staff manager’s own department, he or she exercises line
authority over the department’s subordinates).

Functional Authority- is given to a line or staff manager to do a specific job. When the
job is completed, the authority is taken back.

Functional authority consists of the right to give orders within a segment of the
organization in which this right is normally nonexistent.
This authority is usually assigned to individuals to complement the line or staff authority
they already possess.
Functional Authority generally covers only specific task areas and is operational only for
designated amounts of time. It is given to individuals who, in order to meet

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responsibilities in their own areas, must be able to exercise some control over
organization members in other areas.

(C) Departmentation: Meaning and Bases

Departmentation: All organizations, regardless of their size or mission, divide there
over all operations in to sub activities and then combine these sub activities in to working
groups. This process of grouping specialized activities in a logical manner is called
departmentation.
Department: is a distinct area, division, or branch of an organization over which a
manager has authority for the performance of specified activities. It is a unit formulated
as a result of the departmentation process. The physical and mental limitations of
individual managers to effectively oversee and coordinate activities beyond a given limit
partly justify the need for departmentation. Departmentation is not an end in it self but is
simply a method of arranging activities to facilitate the accomplishment of objectives.
Bases for Departmentation
Since organizations are different in their activities, objectives and areas in which they
operate, there are different bases for departmentation. The most common bases are
function, territory, product, customer, and process
1. Departmentation by Function
It is the grouping together of activities in accordance with the functions of an enterprise -
on the basis of similarity of expertise, skills or work activities. In other words, jobs that
call for certain skills or the use of similar working methods will be put together. It is
probably the most common base for departmentation and is present in almost every
enterprise at some level in the organization structure. It asks the question “what does
typically the enterprise/organization do” what kind of activities. Example of which are
Engineering, production, marketing, Finance, etc
2. Departmentation by Territory/
Geography
 Groups (business) activities on the basis of geographic region or territory.
 Is common in enterprises that operate over wide geographic areas i.e, it is
attractive to large-scale firms or other enterprises whose activities are physically or
geographically dispersed. The logic is that all activities in a particular area or

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 region should be assigned to a manager. This individual would be in charge of all
operations in that geographic area.
 Can be used by business, government, NGOs, or other enterprises.

Geographic departmentalization works best when different laws, currencies, languages

and traditions exist and have a direct impact on the ways in which business activities
must be conducted. For example, Western region, Eastern region, Southern region
3. Departmentation by Product (Line)
It is the grouping and arrangement of activities around products or product groups.
Departmentation by product should be considered when attention, energy, and efforts
need to be focused on an organization’s particular products. This can be true if each
product requires a unique strategy or product process or distribution system or capital
sources. This approach works well for an enterprise, which engaged in very different
types of products. For example:
 Textile products - Nylon products, woolen products, silk products, cotton products
 Petroleum refining - kerosene, diesel,
 Electronics - Radios, TVs, Computers
4. Departmentation by Customer
It is a grouping of activities around customers. This grouping reflects a primary interest
in customers. Customers are the key to the way activities are grouped when each of the
different things an enterprise does for them is managed by one department head. This
makes economic sense when the customers are distinct enough in their demands,
preferences, and needs. It helps organizations meet the special and widely varying needs
of customers. It can be used in medical institutions such as hospitals and clinics -
emergency services, out patient services, inpatient services, x-rays; retail stores- men's
clothing, women's clothing, children's clothing.
5. Departmentation by Process
Manufacturing firms often group activities around a process or type of equipment.
Making plywood, for example, involves several sequential process: poling (removing
bark from logs); sawing logs in to 8’ lengths, heating; veneer stripping and stamping

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veneer sheets in to 4' segments; drying and grading according to quality; gluing plies
together; finishing and bundling.

(D) Span of Control (Management)

The term span of management is also referred to as a span of control, span of supervision,
span of authority or span of responsibility.
Span of control: simply means the number of subordinates or the units of work that an
administrator can personally direct.
Span of management - refers to the number of subordinates who report directly to a
manger, or the number of subordinates who will be directly supervised by a manager.
This varies from one situation to another. There is no magical number for the span of
control. There are various factors affecting the span of management. Based on the
number of subordinates who should report to a manager or the number of subordinates
that a superior should supervise, we can have:
 Wide span of management and
 Narrow span of management
Narrow Span of Management: This means superior controls few numbers of
subordinates or few subordinates report to a superior. When there is narrow span of
management in an organization, we get:
 Tall organization structure with many levels of supervision between top
management and the lowest organizational level.
 More communication between superiors and subordinates.
 Managers are underutilized and their subordinates are over controlled.
 More trained managerial personnel and centralized authority.
Advantages
1. Close supervision and control
2. Fast communication between subordinates and superiors.
Disadvantages
Superiors tend to get too involved in the subordinates work
The problem of setting more trained managerial personnel

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Long distance between low level and top level management. This kills intuitive for top-
level positions
High costs due to many levels.
Wide Span of Management: This means many subordinates report to a superior or a
superior supervises many subordinates. If the span of management is wide, we get:
 A flat organization structure with fewer management levels between top and lower
level.
 Many number of subordinates and decentralized authority.
 Managers are overstrained and their subordinates receive too little guidance and
control.
Advantages
1. Superiors are forced to delegate
2. If initiates the development of clear polices
3. Subordinates must be carefully selected and trained.
Disadvantages
1. Tendency of overloaded superiors to become decision bottle necks
2. Danger of superior’s loss of control
3. Require exceptional quality of mangers.
Factors Determining an Effective Span of Management
The principle of span of a management states that there is no any specific number of
subordinates to be supervised by a manager. Rather, it states, there are factors that affect
the span of management. Some are:
1. Ability of the manger
The ability of the manager (supervisor) who is responsible for supervising subordinates
affects the span of a management. If the manager is well trained and highly capable,
receives assistance in performing her/his supervisory activities, doesn’t have many
additional, non-supervisory activities to perform the appropriate span can be relatively
broad.
2. The abilities of subordinates.
The amount of training, experience, and ability that subordinates have is directly related
to a manager’s span of control knowledgeable subordinates who work well on their own

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require less supervision than inexperienced, poorly trained workers do. Well - trained
subordinates require not only less of their manager’s time but also fewer contracts with
them.
3 Type of work - Routines and simplicity of work
Managers supervising people with simple and repetitive jobs are able to manage more
immediate subordinates than are those who supervise people with complex, non-
repetitive tasks.
4. Geographic dispersion of subordinates.
Normally, there is an inverse relationship between a manager’s span of control and the
geographic dispersion of his/her subordinates. For example, a sales manager whose sales
people are scattered over a wide geographic region cannot supervise as many
subordinates as a manager can whose subordinates are in one building. This is especially
true when the manger and subordinates must meet on a regular basis.
5. The availability of information and control systems
If there are sophisticated information and control systems, the manager can supervise
many subordinates and hence the span will be wide.
6. Levels of management
The size of the most effective span differs by organizational level. At the top level of
management the span is wide. At the middle level of management the span is narrow,
because they involve in policy supervision and much more direct, personal contract with
subordinates than top-level managers. At the lower level of management the span is wide,
because as managers of operating employees, supervisors frequently supervise work that
is not complex and that rarely requires policy decisions. Instead, they will usually rely on
rules and procedures to help them solve the daily problems that arise.
3.3 STAFFING
After the organizing function is completed (after jobs or positions are created within each
organizational unit incorporated in the structure), staffing becomes the next task of
managers. Staffing in broad sense is also known as personnel management or human
resource management. It is the process of assigning prospective employees to fill up the
vacant jobs or positions created at the preceding managerial function.

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Staffing is the process of matching job demands with the people with required
qualifications; i.e. knowledge, skill, ability, experience and the like. Staffing involves a
number of activities and processes, such as:
 Recruitment (searching for candidates by using different means),
 Selection (choosing of eligible and fit candidates),
 Induction (orientating new employees about their jobs, colleagues, facilities,
benefits, and the general working environment),
 Placement (arrangement to the proper job),
 Appraising (periodic evaluation of the performance of employees),
 Promotion (upgrading permanent employees to a higher rank in the grade levels
of an organization),
 Record keeping, training, reward and reprimand, retirement and related activities,
Are the concerns of the staffing function mainly performed by the personnel or human
resource department, division, or unit.
3.4 DIRECTING (LEADIING)
Directing or leading is the management or administrative function that involves
influencing others to engage in the work behaviors necessary to reach organizational
goals. It simply means guiding the efforts of human resources to ensure high level of task
accomplishment. Leading or directing includes communicating with others, helping to
outline a vision of what can be accomplished, providing direction, and motivating
organization's members to put forth the substantial effort required from them.
Leading involves motivating or activating people towards achieving a harmonized
common (organizational goal). It is a process of getting or winning the cooperation and
willingness of people fulfill organizational objectives. Leading includes, among others,
the following:
 Motivation: involves inspiring or stimulating employees by giving an
opportunity to ensure high-level individual performance and thereby attain
organizational objectives. There are different motivational factors, which could
be implemented on the basis of identifying the real demands and interests of
employees, such as material and financial rewards, providing training,

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 introducing safety measures, creating conducive working atmosphere and
relationships, recognition etc.
 Dealing with People: managers need to spear their time to handle the effect of
group behavior as well as to capitalize the advantages of using the different
talents of people they lead. Leading has also to do with maintaining teamwork.
 Communication: is an important, perhaps the determinant, factor for effective
leadership. This refers to the level of consultation and interaction of managers
with their subordinates, and the use of communication channels or networks that
facilitate effective transmission of information and idea. For example, policies,
orders, and regulations that are usually formulated by the top management
should be properly addressed to organizational members.
Leadership function is essentially influenced by the type of leaders an organization might
have. There are three basic types of leaders who exercise leadership roles differently:
 Authoritarian Leaders: they lead by using power, followers are alienated,
performance is proportional to power
 Transactional Leaders: they lead by using rewards, followers are willing but
calculative, use linkages between performance and goals as well as between
performance and rewards
 Transformational Leaders: they lead by articulating and communicating realistic
vision, intellectually paying attention to individual differences, make followers
committed and loyal.

3.5 CONTROLLING
Controlling is the management function that is aimed at regulating organizational
activities so that actual performance conforms to expected organizational standards and
goals. Controlling simply means monitoring of task accomplishments and taking
necessary measures. To do the necessary regulatory functions, administrators need to
monitor ongoing activities, compare results with expected standards or progress toward
goals, and take corrective action as needed.

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Controlling involves follow up of employees' activities to get feedbacks about results by
comparing performances with plans. Controlling shouldn't be associated only with its
negative sense; i.e. subjugating or subduing subordinates by giving no or little
discretionary power in their operation. It should rather be considered mainly in positive
terms as having a purpose of helping people to be in conformance with plans, making an
appropriate adjustment when performances deviate from expectations. Administration
therefore involves:
 Looking ahead,
 Making good plans, and then
 Helping people to take actions needed today in order to best meet the challenges of
the future. In this regard, “administrators are responsible to monitor the goals, look
for problems, and help people who fall behind before they lose control of or cause
organizational damage". In controlling, managers need to:
 Have standards or yardsticks, which are the measuring instruments through which
performances and plans could be compared,
 Get outputs compared with inputs with reference to approved plans and identify
the gaps and the causes of deviations,
 Correct deviations, if there is any, by properly addressing the identified problems,
In fact having standards and comparing outputs with plans might be a short-lived exercise
or business. What is most difficult rather is identifying the problem to correct the
prevailing deviation. As a matter of principle managers may use the following three types
of control:
(a) Preliminary control: it is a pre-action control that takes place before the actual
managerial activity started. It is an attempt to have a very realistic objective. To apply
preliminary control there should first exist job description or specification that describes
the nature and content of the work an employee is expected to perform and the means of
handling it. Thus, a manager has to check whether the person holding the position has the
necessary skill, ability, and interest before the actual work starts.
(b) Concurrent control: this type of control is undertaken while the business or an
activity is in motion. In other words this is controlling an ongoing activity in the plan
period without waiting for the end of the planning period.

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(c) Feedback control: is a type of control of performance at the end of the planning
period.
Public Relations
A public relationship is a pivot of modern governmental activities. Many good schemes
get killed because of lack of proper public relationship. It is both sided affair. Whereas it
should clarify governments view point, it should equally appreciate the view point of
those who are going to be affected by the policies. It should help in removing
misunderstanding but not without appreciating the view point of the other side.

It is felt that Public Administration should be in a poison to tell the people about its
achievements and performances and try to wipe out the impression that is hostile to the
public.
In democratic state administration must be responsive to public opinion. A hostile public
relation is rather a great slur on public administration. A good public relation essentially
means educating the musses about administration’s policies and programs and not doing
propaganda. Disseminating information is different from doing propaganda.
McCany has said that, “public relations in government is the composite of all the primary
and secondary contacts between the bureaucrats and all the interactions of influences and
attitude established in these contacts.”
The main aim and object of public relationship should be that of educating the public.
Another principle is that public relations should aim at public welfare. Because trying to
solve the difficulties of the mass require knowing them. A principle of public relations
requires that the policy should constant and non-confusing. For establishing good public
relation special responsibility should be given to a few who are well trained capable and
flexible enough to give all possible information to the masses which prejudicial to the
interest of the organization.
It is hoped that under a good public relations there will be very close relation between the
organization and the press. Healthy contacts with the press facilitate provision of proper
explanation for the laws passed by the legislation and thus bring elasticity in the rigidity
of the rules. It should provide background information for the enactment and passing of
laws so that the purpose is made known to the public. It should also try to convince that

32
the laws should be given fair trial before these are condemned or some prejudical attitude
is adopted towards them.
Public relations should aim at bringing social consciousness. It should straggle to put the
theory of social welfare in to practice.
An enlightened public administrator will try to discover the state of the mined of public
with which he is deal. He should not only try to provide expiration facilities but listen
calmly to grievances and suggestions. He should go deeply I knowing the impression of
the public about the quality and quantity of their work which his organization is doing. In
the words of Rex Harlo “public relation is a science through which an organization can
consciously attempt to fulfill its social responsibilities and to secure the public
recognition and approval necessary to success.
A good public relation can help an organization I n creating goodwill among all
concerned. The organization can use its employees for this purpose. Television, radio,
press, publicity, advertisement, audio visual aids are some of the methods for establishing
public relations

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