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Authority means the power to take decision. This has to be delegated to the person to whom work is assigned. It means authority can be delegated.

There are two meanings of ‘Responsibility’, i.e., Responsibility for and Responsibility to. (The ‘Responsibility to’ is also known as Accountability). The ‘Responsibility for’ can be delegated but ‘Responsibility to’ is absolute and can never be delegated. In the statement given in the question, the meaning of responsibility is ‘responsibility to’ that cannot be delegated. It means the person who delegates authority remains accountable to his own boss for the work performance of his subordinate.

Meaning: The basic principle of delegation of authority is the principle of ‘Absoluteness of responsibility’ (here by responsibility we mean Responsibility to/Ultimate Responsibility/Accountability). As per this principle, authority can be delegated but accountability is absolute and cannot be delegated. The person who delegates authority remains accountable to his own boss for the work performance of his subordinates.

Example: A Chief Manager assigns jobs to a Departmental Manager who in turn assigns it to his subordinate. Departmental manager along with assigning the job, will also delegate authority but this will not terminate his accountability. He will always be answerable to his boss for the work-performance of his subordinates. On the basis of this, there would be no anomaly to say that just authority can be delegated but not accountability. Thus, accountability is always of the person who delegates authority.

Span of management

Span of control

Span of control

Correct option is (c) Span of management

Correct option is (c) Organising

A divisional structure comprises of separate business units or divisions. Each unit has a divisional manager responsible for performance and who has authority over the unit. Generally, manpower, is grouped on the basis of different products manufactured.

Merits 

1. Skill Development: Product specialisation helps in the development of varied skills in a divisional head and this prepares them for higher positions as they gain experience in all functions. 

2. Accountability: Divisional heads are accountable for profits, as revenues and costs related to different departments can be easily identified and assigned to them. This provides proper basis for performance measurement. 

3. Quick decision making: It promotes flexibility and initiative because each division functions as an autonomous unit which leads to faster decision making. 

4. Facilitates Expansion: It facilitates growth as new divisions can be added without interrupting the existing operations, by merely adding another divisional head and staff for the new product line.

Demerits 

The divisional structure has certain disadvantages 

1. Conflicts: Conflicts may arise among different divisions with reference to allocation of funds. 

2. Higher cost: Providing each division with separate set of similar functions increases expenditure. 

3. Ignoring organisational goals : It provides managers with the authority to supervise all activities related to a particular division. In course of time, sucn a manager may gain power and in a bid to assert his independence may ignore organisational interests.

The informal organisation offers many benefits Important among them are given as follows

1. Quick feedback: Prescribed lines of communication are not followed. Thus, the informal organisation leads to faster spread of information as well as quick feedback.

2. Social needs: It helps to fulfill social needs of the members and allows them to find like minded people. This enhances their job satisfaction, since it gives them a sense of belongingness in the organisation.

3. Organisational objectives: It contributes towards fulfilment of organisational objectives by compensating for inadequacies in the formal organisation e.g., feedbacks on new policies etc can be tested through informal network.

Decentralisation is much more than mere transfer of authority to the lower levels of management hierarchy. 

Its importance can be understood from the following points:

1. Develops Initiative among subordinates: When lower managerial levels are given freedom to take their own decisions they learn to depend’ on their judgement. A decentralised policy helps to identify those executives, who have the necessary potential to become dynamic leaders.

2. Develops Managerial Talent for the future: Formal training plays an important part in equipping subordinates with skills that help them rise in the organisation, but equally important is the experience gained by handling assignments independently. It gives them a chance to prove their abilities and creates a reservoir of qualified manpower.

3. Quick decision making: In a decentralised organisation, however, since decisions are taken at levels, which are nearest to the points of action and there is no requirement for approval from many levels the process is much faster.

4. Relief to top Management: Decentralisation leaves the top management with more time, which they can devote to important policy decisions rather than occupying their time with both policy as well as operational decisions.

5. Facilitates growth: Decentralisation awards greater autonomy to the lower levels of management as well as divisional or departmental heads. This allows them to function in a manner best suited to their department and develops a sense of competition amongst the departments. Consequently, the productivity levels increase and the organisation is able to generate more returns, which can be used for expansion purposes.

6. Better control: Decentralisation makes it possible to evaluate performance at each level and the departments can be individually held accountable for their results. The extent of achievement of organisational objectives as well as the contribution of each department in meeting the over all objectives can be ascertained.

Decentralisation is much more than mere transfer of authority to the lower levels of management hierarchy. Its importance can be understood from the following points 

(i) Develops Initiative Among Subordinates: When lower managerial levels are given freedom to take their own decisions they learn to depend on their judgement. A decentralised policy helps to identify those executives, who have the necessary potential to become dynamic leaders. 

(ii) Develops Managerial Talent for the Future: Formal training plays an important part in equipping subordinates with skills that help them rise in the organisation, but equally important is the experience gained by handling assignments independently. It gives them a chance to prove their abilities and creates a reservoir of qualified manpower. 

(iii) Quick Decision Making: In a decentralised organisation, however, since decisions are taken at levels, which are nearest to the points of action and there is no requirement for approval from many levels the process is much faster. 

(iv) Relief to Top Management: Decentralisation leaves the top management with more time, which they can devote to important policy decisions rather than occupying their time with both policy as well as operational decisions. 

(v) Facilitates Growth: Decentralisation awards greater autonomy to the lower levels of management as well as divisional or departmental heads. This allows them to function in a manner best suited to their department and develops a sense of competition amongst the departments, consequently, the productivity levels increase and the organisation is able to generate more returns, which can be used for expansion purposes. 

(vi) Better Control: Decentralisation makes it possible to evaluate performance at each level and the departments can be individually held accountable for their results. The extent of achievement of organisational objectives as well as the contribution of each department in meeting, the over all objectives can be ascertained

Functional structure of organisation as all major functions can be performed well under separate specialised departments.

Advantages:

(i) Specialization: A functional structure leads to occupational specialization since emphasis is placed on specific functions.

(ii) Efficiency: It helps in increasing managerial and operational efficiency and this result in increased profit.

(iii) Minimises costs: It leads to minimum duplication of effort which results in economies of scale and thus reduces cost.

(iv) Better control and co-ordination: It promotes control and coordination within a department because of similarity in the tasks being performed.

(v) Proper attention: It ensures that different functions get due attention.

(vi) Ease in training employees: In makes training of employees easier as the focus is only on a limited range of skills

The function of management discussed is Organising.

It makes clear the activity of every employee and also of their extent of authority.

Effective Administration: It has generally been observed that there is always a condition of doubt about the authority of the managers among themselves. The process of organising makes a clear mention of each and every activity of every manager and also of their extent of authority. It is also made clear as to whom shall a manager order for a particular job. Everybody also knows as to whom they are accountable. In this way, the confusion about authority is put to end. Consequently, effective administration becomes possible.

Divisional structure.

Limitations of Divisional Structure:

(a) Conflicts may arise among different divisions with reference to allocation of funds at the cost of other divisions.

(b) It may lead to the increase in cost due to the duplication of activities across products.

(c) Manager may misuse his power and ignore organisational interests.

Functional structure.

It is the limitation of functional organisation structure.

Responsibility is the obligation of the subordinate to properly perform the assigned duty.

Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position.

The manager is responsible for work not being completed. The principle of authority responsibility

Correct option is (d) None of these

Correct option is (c) Both (a) and (b)

• As a company is performing separate functions in separate areas, then it should adopt functional structure 
• The services of experts are common to all products. It will be economical as no duplication will take place. 
• Span of management can be increased as workers will be doing the same type of work

Divisional organisation.

The manager is responsible for work not being completed. The principle of authority responsibility is violated.

Correct option is (c) Decentralisation

(i) As a company is performing separate functions in separate areas, then it should adopt functional structure. 

(ii) The services of experts are common to all products. It will be economical as no duplication will take place. 

(iii) Span of management can be increased as workers will be doing same type of work.