Centralization of the Authority
After the delegation of the authority, the delegation of the decision making is obtained and consequently after this, the acts for the implementation are very much required. So it can be said that the authority for taking the decisions can be spread with the help of the delegation of the authority.

The centralization of the authority can be done with – in a few seconds, if complete concentration is given on the decision making at any position. This concept is generally referred to as the centralization of the authority. The centralization can be done with a position or at a level in an organization. Hence, it can be said that the extension of the organization is referred to as the centralization of the authority. Here the decision making must be concentrated in a few hands.

The advantages of the centralization of the authority can be summarized as the follows –
1. Very high speed.
2. Well defined responsibility.
3. Depends largely on the general consensus.
4. Decision making is very clear.

De–Centralization of the Authority
In an organization, the decentralization of the authority can be referred to as allowing the large number of the persons within an organization to take the decisions. In the decentralization of the authority, no concentration is given on the decision making.

The major disadvantages of the decentralization of the authority can be summarized as the follows –
1. General slackness in the discipline.
2. Too much meddling in the process.
3. Existence of the political culture.
4. Loss in the effectiveness.

Types of the Organizational Authorities
1. Line Authority

a. The major function of the authority includes directing the human beings to serve for the united objective, for fulfilling the purpose of the organization.
b. The delegation of the authority makes sure that these humans take the various needed decisions, the actions.
c. The authority delegation makes sure that these humans implement the plans and the various policies.
d. The authority that is provided to an individual by the organization helps in creating the confidence in an individual for any type of the work he does.
e. One of types of the authority is the line authority.
f. Acts as the most common type of the authority.
g. The line authority comes from the top with the help of the levels, till the final operational person in line.
h. The person who is next in the line should assume the work of a boss in the absence of the first one.
i. More is the length of a line of the authority; more is the elongation and the cost of the decision.
j. The cost increases as a result of the structure.
k. Resulting in the slow and routine decision making.
l. Impact of the initiatives is lost as a result.
m. Discipline in the organization also increases.
n. But the productivity decreases.

2. Staff authority

a. Here some people are given the authority to advice.
b. These people are the ones who are having the expertise in the specific field.
c. A legal expert can be appointed for providing the much needed support to the marketing manager.
d. Expert knowledge is also provided.
e. Comparatively less costly.
f. The main requirement of the staff authority is the backing up of the management.

3. Functional authority

a. The intervening within the line authority for the functional purpose is referred to as the functional authority.
b. Here the authority is given to the inspectors, who work on the line but not necessarily on the same line.
c. The main responsibility is to inspect the whole work, which is being done by the line.
d. The personnel manager is provided the power or the right to intervene in the line manager for any of the personnel function.

Different levels of the Authority
1. Organization levels

A. The various levels of the organization are generally born as a result of the effect of the delegation of the authority.
B. The three levels of the organization that arise can be summarized as the follows –

a. The Operation Level Management –
I. This level is referred to as the operation level management as the various operational managers are involved in the actual implementation.
II. Acts as the front line work with the day to day decision making of the structured nature.
III. To a great extent, this level is related to the man machine relationship and the utilization of the resources.
IV. Operational managers include the workers and their supervisors.

b. The Middle Level Management –
I. This level is referred to as the Middle level management as it is placed between the operation level and the top level.
II. Here the various decisions pertaining to the actual use of all the resources and for a span of the time extending upto the financial year are taken.
III. With the help of these decisions, the operational financial results on a year to year basis can also be improved.

c. Top Level Management –
I. People like the Chief Executive Officer (CEO), the Managing Director, the General Managers, the Presidents, and the Vice Presidents Etc. are involved in this level.
II. The main responsibility of these people in this level of the management is to do the planning of the business.
III. These people also look after the performance of the organization and also play a very vital role of the scanners by which they have to collect or scan the critical information from the internal and the external environment.

2. Vertical organizations –

A. Help in the determination of the authority and the responsibility of any person working in an organization.
B. This determination can be done by providing a position at a particular level to that person.
C. The various levels of the vertical organization can be summarized as the follows –

I. The Operational level – Includes the unskilled, the skilled, the supervisors etc.
II. The Middle level – Includes the assistant managers, the senior managers, and the executives.
III. The Top level – Includes the general managers, the vice presidents, the presidents etc.

D. These three levels are further divided into emolument depending on the manager levels 1, 2, 3 etc.
E. More are the levels; more the management becomes vertically oriented.
F. The more are the levels; more is the cost.
G. More are the levels; more are the opportunities for the manager for the promotions.

3. Horizontal organizations –

A. Also called as the flat organizations.
B. The organizations are referred to as the horizontal or the flat organizations, when the levels in the organization are few in the number.
C. In such organizations, one very important point that forms the basis of this type of the organizations is that the distance between the operational management level and the top level management level is very less.
D. Great emphasis is given on reducing or keeping a control over the costs of the levels.
E. In this type of the organization, the designing of the jobs is done in such an elegant way that the people feel ownership in the work they do and it’s final outcome.
F. The number of the promotions for an individual becomes less, mainly due to the reason of the lesser number of the levels that are present.

4. Circular organizations –

A. Involves a center of an organization.
B. This center performs a major responsibility of guiding and controlling the various activities.
C. Absence of the authority relations.
D. Support relations with some authority required for the implementation of the direction, are present in such organizations.
E. Great emphasis is given on the self managed units that are almost equidistant from the center, from the point of the view of the relationship.
F. Existence of more creativity.
G. Presence of more independence.

Introduction
As one gets from the name, the word departmentation refers to the division of the labor, instead of the individuals, of the group of the various types of the activities that are involved. The departments are formed from the related activities that have the ability to form various semi independent units.

The process of the departmentation generally follows no stiff rules but the main purpose of carrying on with the process of the departmentation is to provide the level of the convenience to each of the organization.
The whole or the total business activity is divided in to the work units as per the convenience of all the organizations.

But the basis on which the departmentation may be or can be done, can be summarized as the follows –
1. Departmentation by the time –

a. The main point here, on which the departmentation is based, is the ‘time’.
b. People can be easily supervised.
c. Working as the exemplified by the shift working in the factories, acts as a great example for explaining the departmentation by the time.

2. Departmentation by the location or the place –

a. A really good example of this type of the departmentation depending on the location can be the regional offices spread over the number of the places, branch offices etc.
b. One of the possibilities includes the presence of the manufacturing activity at one place and the marketing activity at a different place.

3. Departmentation by the functions –

a. A separate department can be formed depending on the nature of the activity that is to be performed.
b. The various activities that are closely related can be brought together in this type of the departmentation.

4. Departmentation by the processes –
a. Different processes are converted to the different departments in this type of the departmentation.
b. For example, various processes like the spinning, the weaving, the dyeing etc are involved in a textile mill and depending on these processes only, new departments have come up.

5. Departmentation by the divisions –

a. Before going any further, it is very important to understand the meaning of the word ‘divisions’.
b. The divisions can be defined as the extensions of the concept of the departments.
c. In this type of the departmentation, the departments act as the cost centers.
d. The divisions act as the profit centers.
e. The divisions are accountable to the income as well as the expenditure.

6. Strategic Business Units (SBU) –

a. During the engagement of the organization in the multiple businesses, there is a dire need for treating each of the business unit as a strategic unit and for fulfilling this purpose, an independent competitive business approach is very essential and here these units are referred to as the strategic business units.

Advantages of the process of the Departmentation
1. The departmentation is greatly based on the logics.
2. With the help of the departmentation, proper attention can be given to the various activities and hence, resulting in the growth of the organization.
3. Synergy can be brought in to the various results.
4. The departmentation results in establishing the team spirit and the co–operative culture.

The concept of the ‘Culture’
One’s own culture is generally formed depending upon the leadership and the various managerial values that are being practiced in an organization. The culture involves the stabilized set of the values at any time that can be tried by the people to adhere to generally because such values are generally appreciated by the management of the organization. Presence of the discipline is very much critical and also very beneficial as with the help of the discipline, the various uniform values can be established.

By organizing, a suitable work environment can be produced that plays a great role in carrying out the various types of the activities in a very efficient way. With the help of the culture, the work of the management is eased and also has a very positive effect on the work ethos of an organization. Now before going any further, it becomes very essential to understand the meaning of the ‘Work Ethos’.

The work ethos refers to the environment that is present around the work. The effect on the working interest of the persons involved can be produced with the help of the working environment. With the help of work ethos, one can define what is considered to be a good work.

Reasons accounting for the Degeneration of the organizations
1. Lack of the leadership.
2. Lack of the delegation of the power.
3. Lack of the growth of the business.
4. Requirement of the re organization.
5. Lack of the conflict resolution.

Methods to increase the efficiency of an organization
1. Creating a very good structure.
2. Putting life into the structure.
3. Presence of a very good leadership.
4. Use of very good and efficient and also result oriented systems and the procedures.
5. Creating balance in the structure.

Tools used by the Organizations
1. Organization Chart –
a. Shows the authority positions of each and every person in the organization.
b. Can be used to depict the numerical strength, the position and the authority links of the staff.
c. Provides a great amount of the clarity in tackling the organizational problem.

2. Organization Manual –
a. Includes the introduction of the business of the organization, includes the history, the objectives, the policies, the rules, the regulations and the information on the persons who are working along with the organization chart in a written form.
b. Helps in easing the communication and the implementation of the organization’s work.
c. Brings great amount of the transparency into the working of an organization.
d. The unity in the organization can also be increased to some extent with the help of the knowledge that is provided by the manual to the employees.

3. Description of the position –
a. The structure of the organization becomes very much clear in the nature.
b. The various features of the position like the designations, the various tasks and the responsibilities can be efficiently understood.
4. Organization Performance Audit –
a. Involves periodical organizational audit by an outside party.
b. As a result of these audits, people start thinking of the organization, in which they are serving.

Introduction
In the manufacturing sector, physical goods are to be manufactured for the customer, but this is not the case in the service sector. Unlike the manufacturing sector, the service sector does not involve any manufacturing of the physical goods for the customer. So now it can be said that the Management Information Systems that are generally used in the manufacturing and the selling organization cannot be used in the service sector.

Payroll, accounting, inventory etc form a very important part of the data processing applications and are used in the service sector only sometimes but an important point to be kept in mind here is that these applications are not that much critical for the service sector. The main mission in this service sector is to provide service to the customer that ultimately satisfies him but this is not the case in the manufacturing sector as here this concept varies from industry to industry and from organization to organization.

The service industry consists of some of the major applications which need to be controlled in a very good way for getting the best stuff out of them.

By these applications, the service organization becomes efficient in the nature and then is able to provide with the best type of the services to the customer. In the today’s world, there occurs a tremendous competition between the companies in order to achieve the maximum profit and this competition also exists a lot in the marketing world, one company directly or indirectly always tries to show the other company inferior to it. So in this competitive scenario, one of the major needs of the industry is to get a service distinction, in order to create a position and a particular identity and growth to remain ahead of the various other industries.

In the service sector, the identification of the segment to be served can be obtained by the sensitive market and also with the help of the consumer research. The service demands are very dynamic in the nature and as a result of all this, for the upgradation of the service facilities, it is very much necessary to conduct a research on the requirements, expectations and the perceptions.

Tom Peters in “The Service Edge” states five principles of a distinct service –
1. Listen, understand and respond to the customers.
2. Define a superior service and establish a service strategy.
3. Set the standards and measure the performance.
4. Select, then train and then empower the employees to work for the customers.
5. Recognize and also reward the accomplishments.

The service industries these days involve the front end facilities, which help in serving the customers in order to clear the immediate needs and to make him comfortable for the other service demands.
All the human interactions are mainly based on the knowledge, so all the systems making the human interaction effective are the mission critical applications and here the main responsibility of the service sector is to provide these to offer the most satisfying service. Changes in the service organizations tend to occur more quickly than the manufacturing sector and also the returns in the service industry are very immediate if compared to the manufacturing sector. At this point, it actually becomes a necessity to understand the meaning of the creation of an outstanding service. This creation of the distinctive service is actually a willful conscious and deliberate management endeavor etc. The management of the service business calls for these willful conscious and deliberate act to create a distinctive service and hence to remain in the business. In order to manage a service effectively, it is a necessity to have in depth understanding about the distinctive characters between the product and the service, the customer expectation and the perception.

Comparison between the Service and the Product

Following are few examples of application of Management Information Systems (MIS) in the Service Sector

1) Application of MIS in Airlines industry
2) Application of MIS in Hospitals
3) Application of MIS in Banking