FOM Unit 3.pdf

FUNDAMENTALS OF MANAGEMENT
UNIT 3- ORGANIZING
By-Ananta Narayana
Assistant Professor
Faculty of Management
Invertis University, Bareilly

LEARNING OBJECTIVES
 Organizing Concept.
 Importance and Principles.
 Types of organization.
 Formal and Informal Organizational
Structure.
 Departmentation: concept and types.
 Span of Control.
 Delegation of Authority.
 Authority and Responsibility.
 Decentralization and Centralization.

INTRODUCTION
Organizing is a fundamental management
function that involves arranging and structuring
an organization's resources and activities to
achieve its objectives efficiently and effectively.
It is a crucial step in the management process
and lays the groundwork for the successful
execution of plans.

CONCEPT OF ORGANIZING
 Organizing refers to the process of bringing
together various resources, such as people,
materials, information, and technology, and
coordinating them to achieve specific goals.
 It involves creating a framework or structure
within which individuals and departments work
together harmoniously to accomplish the
organization's objectives.
 Organizing sets the stage for implementation,
providing clarity on roles, responsibilities, and
the allocation of resources.

IMPORTANCE OF ORGANIZING
 Facilitates Goal Achievement: Organizing ensures
that resources are allocated efficiently and tasks are
coordinated effectively. This alignment with the
organization's goals enhances the likelihood of
successful goal achievement.
 Optimal Resource Utilization: Effective organizing
helps in optimizing the use of available resources,
including human capital, finances, and materials. It
prevents duplication of efforts and minimizes
resource wastage.
 Enhances Clarity: Organizing clarifies roles and
responsibilities within the organization. Employees
know what is expected of them, reducing confusion
and conflicts.

 Promotes Efficiency: A well-structured
organization ensures that tasks are performed in the
most efficient manner. It streamlines workflows,
reduces bottlenecks, and enhances productivity.
 Adapts to Change: Organizing provides flexibility to
adapt to changes in the internal and external
business environment. It allows the organization to
reassign resources and modify structures as needed.
 Encourages Innovation: When resources are
organized effectively, employees are more likely to
have the time and space for creative thinking and
innovation.

PRINCIPLES OF ORGANIZING
 Unity of Purpose: All organizational activities
and structures should align with the overall
purpose and goals of the organization.
 Division of Labor: Tasks and responsibilities
should be divided among individuals or
departments based on their skills and expertise.
This promotes specialization and efficiency.
 Hierarchy: A clear chain of command and
reporting relationships should be established to
maintain order and facilitate communication
within the organization.

 Span of Control: Managers should have a reasonable
number of subordinates to ensure effective supervision and
coordination.
 Authority and Responsibility: Authority should be
commensurate with responsibility to avoid confusion and
conflicts.
 Delegation: Managers should delegate authority and tasks to
subordinates, empowering them to take on responsibilities and
make decisions within their purview.
 Coordination: Coordination mechanisms, such as meetings,
communication systems, and information sharing, should be
in place to ensure that various parts of the organization work
harmoniously towards common goals.
 Flexibility: Organizational structures should be adaptable to
changing circumstances, allowing for agility in responding to
new challenges and opportunities.

PROCESS OF ORGANIZING
 Establishing Objectives and Goals:
 The organizing process begins with a clear understanding
of the organization's objectives and goals. These goals serve
as a guide for structuring the organization and allocating
resources.
 Identifying Resources:
 Identify and assess the resources required to achieve the
stated objectives. These resources include human
resources, financial resources, materials, technology, and
information.
 Division of Labor:
 Divide the work and responsibilities among individuals or
departments based on their skills, expertise, and job roles.
This step promotes specialization and efficiency.

 Defining Roles and Responsibilities:
 Clearly define the roles, responsibilities, and authorities of individuals or
teams within the organization. This ensures that everyone understands
their specific contributions and accountabilities.
 Hierarchy and Chain of Command:
 Establish a hierarchical structure that outlines the levels of authority and
reporting relationships within the organization. The chain of command
clarifies how decisions flow from top management to front-line employees.
 Span of Control:
 Determine the number of subordinates or employees that each manager or
supervisor can effectively oversee. A reasonable span of control prevents
overload and fosters effective supervision.
 Delegation of Authority:
 Delegate decision-making authority to appropriate levels of management
and employees. Effective delegation empowers individuals to make
decisions within their areas of responsibility.
 Coordination:
 Establish mechanisms for coordination and communication among
different parts of the organization. This includes regular meetings,
reporting systems, and information-sharing processes to ensure that
everyone is working in harmony toward common goals.

 Structuring Departments:
 Organize departments or functional units based on their specific roles and
functions within the organization. Common departmental structures include
functional, divisional, matrix, and network structures, depending on the
organization's needs.
 Adapting to Change:
 Recognize that the organizing process is not static but dynamic. As the
organization evolves and faces new challenges, it must be adaptable and
willing to restructure as needed.
 Integration with Other Functions:
 The organizing process should be closely aligned with other management
functions, such as planning, staffing, leading, and controlling, to ensure
consistency and synergy across all aspects of management.
 Monitoring and Evaluation:
 Continuously monitor the effectiveness of the organizational structure and
adjust it as necessary. Regular evaluations help identify bottlenecks,
inefficiencies, and areas for improvement.
 Legal and Ethical Considerations:
 Ensure that the organizing process complies with all relevant legal and
ethical standards, including labor laws, industry regulations, and ethical
business practices.

TYPES OF ORGANIZATION
1. Line Structure Organization:
 Description: Also known as a hierarchical or
traditional structure, it's the simplest form where
authority flows vertically from top to bottom.
 Characteristics:
 Clear chain of command and reporting.
 Well-defined roles and responsibilities.
 Limited specialization.
 Decision-making centralized at the top.
 Examples: Small businesses, military
organizations, and some manufacturing
companies.

2. LINE AND STAFF ORGANIZATION:
 Description: Combines elements of the line
structure with specialized support functions
provided by staff departments.
 Line departments handle primary tasks.
 Staff departments provide expertise and advice.
 Greater specialization.
 Better support for decision-making.
 Examples: Large corporations, government
agencies, and hospitals.

3. FUNCTIONAL STRUCTURE
ORGANIZATION:
 Description: Organizes employees into
functional departments based on their expertise
or function, such as marketing, finance, and
operations.
 Specialized departments.
 Clear focus on functions.
 Efficient resource allocation.
 Potential for silos and limited cross-functional
collaboration.
 Examples: Large corporations, academic
institutions, and government agencies.

4. MATRIX STRUCTURE ORGANIZATION:
 Description: Combines elements of functional
and project-based structures, allowing employees
to report to both a functional manager and a
project manager.
 Dual reporting relationships.
 Enhances flexibility and expertise utilization.
 Potential for role ambiguity and conflicts.
 Effective for complex projects and dynamic
environments.
 Examples: Multinational corporations,
engineering firms, and technology companies.

5. PROJECT STRUCTURE
ORGANIZATION:
 Description: Organizes employees around
specific projects or tasks, with project managers
having significant authority.
 Temporary structure for specific projects.
 Project managers have autonomy.
 Highly flexible and responsive.
 Team members may report to multiple project
managers.
 Examples: Construction projects, software
development teams, and event planning
companies.

FORMAL AND INFORMAL
ORGANIZATIONAL STRUCTURE
 Formal and Informal Organizational Structures
are two fundamental aspects of how an
organization is organized and functions.
 They both play crucial roles in shaping the work
environment and communication within a
company.

FORMAL ORGANIZATIONAL STRUCTURE:
 Definition: The formal organizational structure
refers to the official, hierarchical arrangement of
roles, responsibilities, and relationships within
an organization. It is typically represented in an
organizational chart or hierarchy chart.
 Hierarchy: It is characterized by a clear chain of
command, with well-defined levels of authority
and responsibility. This structure is often
represented as a pyramid, with the CEO or top
executive at the top, followed by various levels of
management, and then the employees at the
base.

 Roles and Responsibilities: Each position within
the formal structure has specific roles and
responsibilities that are clearly defined. Employees
know who they report to and who reports to them.
 Decision-Making: Formal structures often dictate
decision-making processes. Decisions typically flow
from the top down, with higher-level managers
making important strategic decisions and lower-level
managers and employees implementing them.
 Communication: Communication in a formal
structure is typically vertical, following the hierarchy.
Information flows up and down the chain of command,
and there are established channels for reporting and
discussing issues.

ADVANTAGES:
 Clarity:
Roles and responsibilities are clearly defined.
 Accountability:
It's easy to assign accountability for tasks and
decisions.
 Stability:
Provides stability and consistency in operations.

DISADVANTAGES:
 Lack of Flexibility:
Can be slow to adapt to changing circumstances.
 Inefficiency:
Can lead to bureaucracy and inefficiency.
 Communication Barriers:
Vertical communication can hinder information
sharing.

INFORMAL ORGANIZATIONAL
STRUCTURE
 Definition:
The informal organizational structure refers to
the unofficial, often invisible network of
relationships and interactions that exist
alongside the formal structure. It is based on
social connections, trust, and shared interests.
 Hierarchy:
In the informal structure, hierarchy may not
align with the formal hierarchy. It's based on
personal influence and expertise rather than
official titles.

 Roles and Responsibilities: Roles in the informal
structure are not formally defined and can change
based on the situation. People may take on leadership
roles based on their expertise or relationships.
 Decision-Making: Informal structures can play a
significant role in decision-making. Influential
individuals or groups may have a say in decisions,
even if they are not part of the formal decision-
making process.
 Communication: Informal communication networks
often facilitate information sharing outside of official
channels. Colleagues may share information, seek
advice, or collaborate without following the formal
hierarchy.

ADVANTAGES:
 Flexibility: Can adapt quickly to changing
circumstances.
 Innovation: Encourages creative problem-
solving and innovation.
 Employee Engagement: Fosters a sense of
belonging and community.

DISADVANTAGES
 Lack of Accountability: Informal structures
can lead to ambiguity and lack of accountability.
 Conflict: Conflicts and power struggles can arise
within informal groups.
 Exclusivity: Informal networks can sometimes
exclude certain individuals or groups.

DIFFERENCE
Basis of
Distinction
Formal Organization Informal Organization
Purpose It is create to achieve pre-
determined objective
It has no pre determined
objectives. It arises due to
social interaction of
people
Formation Well planned and created
deliberately
Unplanned and they
originate automatically
Structure Well Structured Unstructured
Nature Official Unofficial
Focus Positions Persons
Source of
Power
Delegated Given by group
Leadership Managers Informal leader
Source of
Control
Reward/Punishment Social Sanctions

DEPARTMENTATION
 Definition and Purpose:
 Departmentation is the process of dividing an
organization into smaller units or departments,
each specializing in a specific area or function.
 The primary purpose is to improve efficiency,
clarity of roles, and coordination by organizing
employees with similar skills, functions, or tasks
into distinct groups.

TYPES OF DEPARTMENTATION:
 Functional Departmentation: - Groups
employees based on their specialized skills and
functions. - Common functions include
marketing, finance, HR, production, and
research. - Promotes specialization and expertise
but may lead to silos and coordination challenges.
 Product Departmentation: - Organizes
departments based on the specific products or
product lines the organization offers. - Suitable
for organizations with diverse product portfolios.
- Enhances focus on product development and
customer satisfaction but can increase overhead.

 Geographical Departmentation: - Departments
are established based on geographic locations or
regions where the organization operates. - Useful for
multinational companies or businesses with a
widespread presence. - Enables localized decision-
making but may create duplication of efforts.
 Customer Departmentation: - Departments are
created according to the distinct customer groups or
market segments served. - Ensures a tailored
approach to customer needs but may lead to
inefficiencies in resource allocation.
 Matrix Departmentation: - Combines multiple
forms of departmentation, often functional and
project-based. - Employees report to both functional
and project managers. - Promotes flexibility and
adaptability but can lead to role confusion and power
struggles.

BENEFITS OF DEPARTMENTATION:
 Specialization: Allows employees to focus on their specific
areas of expertise, leading to improved proficiency.
 Efficiency: Streamlines processes and resource allocation,
reducing redundancy.
 Clarity: Clearly defines roles and responsibilities, reducing
ambiguity and conflicts.
 Coordination: Facilitates better coordination within
departments and enhances overall organizational
effectiveness.
 Accountability: Assigns responsibility for specific
functions or products, making it easier to track
performance.

CHALLENGES AND CONSIDERATIONS:
 Communication: Ensuring effective communication
between departments is crucial to avoid information
silos.
 Coordination: Interdepartmental coordination can
be challenging, and conflicts may arise.
 Flexibility: Some forms of departmentation may
limit an organization's adaptability to changing
conditions.
 Resource Allocation: Careful resource allocation is
necessary to avoid duplication or neglect of functions.
 Overlap: Departments should have well-defined
boundaries to prevent overlapping responsibilities.

SELECTION OF DEPARTMENTATION
TYPE:
 The choice of departmentation type depends on
factors like the organization's size, industry,
goals, and external environment.
 Organizations often use a combination of
departmentation types to balance specialization
and coordination.

PERIODIC REVIEW:
 Departmentation is not static; it should evolve with
changes in the organization's goals, market
conditions, and technology.
 Regularly assessing the effectiveness of
departmentation and adjusting as needed is essential
for long-term success.
 Departmentation is a critical aspect of organizational
design that involves grouping employees based on
specific criteria to enhance efficiency, coordination,
and specialization. Organizations should carefully
select the most suitable departmentation type while
remaining adaptable to changing conditions and
needs.

SPAN OF CONTROL
Definition: Span of control, also known as span of
management or span of supervision, is the number of
employees, subordinates, or units that report directly
to a single manager or supervisor within an
organization.
 Span of control is a fundamental concept in
organizational management that refers to the number
of subordinates or employees that a manager or
supervisor can effectively oversee and manage.
 It is an important consideration in the design and
structure of an organization as it can impact
communication, decision-making, and overall
organizational efficiency.

FACTORS INFLUENCING SPAN OF
CONTROL:
 Nature of Work: The complexity and nature of the
tasks being supervised can affect span of control.
More complex tasks may require a narrower span.
 Managerial Skill: The competence and experience of
the manager can influence their ability to handle a
broader span of control.
 Technology: Advances in technology, such as
communication tools and project management
software, can enable managers to oversee a larger
span.
 Organizational Structure: The hierarchical
structure of an organization can impact span of
control. Flatter organizations tend to have wider
spans, while taller organizations have narrower
spans.

TYPES OF SPANS:
 There are two primary types of spans of control:
 Narrow Span: A narrow span of control typically
involves a manager overseeing a smaller number of
subordinates, often resulting in a tall organizational
structure with many levels of hierarchy. This allows
for more direct supervision but can slow down
decision-making.
 Wide Span: A wide span of control involves a
manager overseeing a larger number of subordinates,
resulting in a flatter organizational structure with
fewer levels of hierarchy. This can lead to quicker
decision-making but may require more delegation and
autonomy among subordinates.

Advantages of a Narrow Span of Control:
 More direct supervision and guidance.
 Closer monitoring of individual performance.
 Better control over tasks and processes.
 Easier communication within smaller teams.
Advantages of a Wide Span of Control:
 Faster decision-making.
 Greater efficiency and cost savings due to
reduced management layers.
 Encouragement of employee empowerment and
autonomy.
 Adaptability to dynamic environments.

DETERMINING THE APPROPRIATE SPAN:
 The appropriate span of control varies depending
on the organization's specific circumstances. It is
often a balance between the advantages of
narrow and wide spans.
 Managers can use their experience, workload
assessments, and organizational goals to
determine the most suitable span.
 Regular evaluations and adjustments may be
necessary as the organization evolves.

CHALLENGES OF SPAN OF CONTROL:
 Balancing control and autonomy can be
challenging.
 Communication can become more complex in
wide spans.
 Inappropriately wide spans can lead to decreased
supervision and accountability.
 Examples of Span of Control:
In a corporate setting, a department head
may have a narrower span over a few direct
reports, while a CEO may have a wider span
overseeing the entire company.

DELEGATION OF AUTHORITY
Delegation of authority is a key concept in
management that involves the transfer of
responsibility and decision-making power from a
higher-ranking individual or manager to a lower-
ranking one. It is an essential process for effective
leadership, as it enables managers to distribute tasks
and decision-making responsibilities throughout an
organization.
 Definition:
Delegation of authority is the process by which a
manager or supervisor grants a subordinate the
authority to carry out specific tasks or make decisions
on their behalf while retaining ultimate
accountability for the outcome.

KEY ELEMENTS OF DELEGATION:
Authority: Power or Rights to Give orders.
The power or permission given to the subordinate to make
decisions and take actions related to the delegated task.
Responsibility: Obligation to Perform Duty/Tasks
The task or duty that is being delegated. The manager
assigns a specific responsibility to a subordinate.
Accountability: Answerability for outcomes of Job/Decision
Although authority is delegated, the manager remains
ultimately accountable for the results of the delegated task.

IMPORTANCE OF DELEGATION:
 Efficiency: Delegation allows tasks to be distributed among
team members, making the best use of available resources.
 Skill Development: It provides opportunities for
subordinates to develop new skills and gain experience.
 Time Management: Managers can focus on higher-priority
tasks when they delegate routine or less critical
responsibilities.
 Empowerment: Delegation empowers employees by giving
them a sense of ownership and responsibility.


BENEFITS OF EFFECTIVE DELEGATION:
 Improved Productivity: Tasks are completed more
efficiently, leading to increased productivity.
 Employee Engagement: Delegating tasks can boost
employee morale and engagement as they feel trusted
and valued.
 Enhanced Decision-Making: Different perspectives
and skills are brought to problem-solving and
decision-making processes.
 Leadership Development: It helps identify and
nurture future leaders within the organization.

CHALLENGES OF DELEGATION:
 Loss of Control: Managers may fear losing
control over delegated tasks or the quality of
work.
 Communication Issues: Insufficient
communication can lead to misunderstandings or
misalignment of expectations.
 Risk of Errors: Subordinates may make
mistakes or decisions that do not align with
organizational goals.
 Lack of Trust: A lack of trust between
managers and subordinates can hinder effective
delegation

STEPS IN THE DELEGATION PROCESS:
 Select the Task: Managers should choose tasks that are appropriate for
delegation.
 Choose the Right Person: Identify the most suitable individual or team for
the delegated task based on skills and capabilities.
 Provide Clear Instructions: Clearly communicate the task, expectations,
and any relevant deadlines.
 Grant Authority: Empower the subordinate with the necessary authority to
complete the task.
 Monitor Progress: Keep track of the task's progress and offer support as
needed.
 Feedback and Evaluation: Provide feedback and assess the results of the
delegated task.
 Acknowledge Success: Recognize and reward successful delegation
outcomes.

TYPES OF DELEGATION:
 Upward Delegation: Occurs when a
subordinate delegates a task or decision back to
their manager due to lack of confidence or skills.
 Lateral Delegation: Involves delegating tasks
to colleagues or peers at the same organizational
level.
 Downward Delegation: The most common
form, where managers delegate tasks to
subordinates or lower-level employees.

AUTHORITY AND RESPONSIBILITY
Authority and Responsibility are two fundamental
concepts in management and organizational structure.
They are closely related but distinct concepts that play a
critical role in Defining Roles, Decision-Making, and
Accountability within an organization.
Key Points:
 Authority is usually vested in specific roles or positions
within the organization, not individuals. It is a formal and
structural concept.
 It is the basis for hierarchy and the chain of command
within an organization.
 Authority should be commensurate with the responsibility
assigned to a role or position.

AUTHORITY:
 Definition:
 Authority is the legitimate power or right granted to a person or a
position within an organization to make decisions, give orders, and
enforce compliance.
 Types of Authority:
 Line Authority: This is the direct authority that flows from the top
of the organizational hierarchy down to lower levels. It involves the
power to make decisions and give orders related to an organization's
primary objectives.
 Staff Authority: Staff positions have the authority to provide advice,
support, and expertise to line positions but do not have direct control
over operations. Examples include HR, legal, and IT departments.
 Functional Authority: This authority is delegated to individuals or
units with expertise in specific functions or areas, allowing them to
make decisions and set guidelines within their domain.

SOURCES OF AUTHORITY:
 Positional Authority: Derived from an
individual's position or role within the
organization.
 Expertise Authority: Granted to individuals
based on their knowledge, skills, or expertise in a
particular area.
 Referent Authority: Stemming from the
respect and admiration others have for an
individual's personal qualities, such as charisma
or leadership.

RESPONSIBILITY:
 Definition:
 Responsibility is the obligation or duty of an
individual or a role within an organization to perform
specific tasks, carry out assignments, and meet
established objectives.
 Key Points:
 Responsibility is closely tied to authority, as those
with the authority to make decisions often have the
corresponding responsibility for the outcomes of those
decisions.
 Responsibility can be thought of as an obligation to
fulfill one's duties and commitments within the
organization.

TYPES OF RESPONSIBILITY:
 Line Responsibility: Typically associated with roles
directly involved in achieving the organization's
primary objectives, such as production or sales.
 Staff Responsibility: Refers to roles that support
and advise line positions but do not have direct
control over operational activities.
 Individual Responsibility: Pertains to tasks and
duties assigned to specific individuals.
 Shared Responsibility: Some responsibilities may
be shared by a group or team.

CLARITY OF RESPONSIBILITY:
 Clearly defined roles and responsibilities are essential
for effective organizational functioning.
 Lack of clarity can lead to confusion, duplication of
efforts, and accountability issues.
Accountability:
 Accountability is the concept that individuals or roles
are answerable for the outcomes of their actions or
decisions. It is closely linked to responsibility.
 Accountability ensures that individuals are held
responsible for their performance, and it helps
maintain transparency and trust within an
organization.

DECENTRALIZATION AND CENTRALIZATION
 Decentralization and Centralization are two
opposing approaches to organizational structure
and decision-making within an organization.
 These concepts determine how authority,
responsibility, and decision-making are
distributed throughout the organization.

CENTRALIZATION:
 Definition:
 Centralization is an organizational structure where
decision-making authority is concentrated at the top levels
of management or within a few key individuals. In a
centralized organization, most decisions are made by a
small group of high-ranking executives or a single central
authority.
 Concentration of Power: Decision-making authority is
held by a select group or individual, often at the highest
levels of the organization.
 Top-Down Approach: Decisions are made at the top and
then cascaded downward to lower levels of the
organization.
 Control and Consistency: Centralization offers greater
control over operations and can ensure consistency in
decision-making.

ADVANTAGES:
 Consistency: Centralization can lead to
consistent and standardized decisions throughout
the organization.
 Efficiency: It can be more efficient in certain
situations, especially when rapid decisions are
needed or when resources are limited.
 Clear Accountability: With a clear chain of
command, accountability is often more
straightforward.

DISADVANTAGES:
Limited Adaptability: Centralized organizations may
struggle to respond quickly to changing circumstances or
local needs.
Bottlenecks: The concentration of decision-making can
create bottlenecks and slow down processes.
Reduced Employee Engagement: Lower-level employees
may feel disempowered and disengaged due to limited
decision-making opportunities.
Examples:
 Many traditional bureaucracies, government organizations,
and large corporations have historically operated with a
high degree of centralization.

DECENTRALIZATION:
 Definition:
 Decentralization is an organizational structure where
decision-making authority is distributed across various
levels and units within the organization. It empowers
lower-level managers and employees to make decisions
that affect their areas of responsibility.
 Distribution of Authority: Decision-making authority is
delegated to lower levels of the organization, giving them
more autonomy.
 Bottom-Up Approach: Decisions can originate at various
levels and then flow upward as needed.
 Local Autonomy: Local units or departments have
greater control over their operations and decision-making.

ADVANTAGES:
 Adaptability: Decentralization allows
organizations to respond quickly to local needs,
market changes, and customer demands.
 Employee Empowerment: It fosters a sense of
ownership, engagement, and responsibility
among employees.
 Efficiency in Specialized Areas: Local experts
can make decisions in specialized areas where
central management may lack expertise.

DISADVANTAGES:
 Coordination Challenges: Coordinating decision-making
across different units can be complex and may require
effective communication.
 Risk of Inconsistency: Decentralization can lead to
inconsistency in decision-making if there are no clear
guidelines or standards.
 Loss of Control: Central management may feel a loss of
control over various aspects of the organization.
 Examples:
 Many tech startups and smaller, agile organizations
embrace decentralization to promote innovation and
responsiveness.

DETERMINING THE DEGREE OF
CENTRALIZATION OR DECENTRALIZATION:
 Organizational Size: Smaller organizations may find it
easier to decentralize, while larger organizations may lean
toward centralization for control.
 Industry and Environment: Organizations in rapidly
changing industries or dynamic environments may prefer
decentralization to respond quickly to market shifts.
 Leadership Style: Leadership philosophy and the
preferences of top executives play a significant role in
determining the degree of centralization or
decentralization.
 Organizational Culture: An organization's culture,
values, and historical practices can influence its approach
to centralization and decentralization.
 Resource Availability: The availability of resources, both
financial and human, can impact the organization's ability
to decentralize effectively.

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