TYPES OF COUNSELLING SERVICES

 

TYPES OF COUNSELLING SERVICES

1.CENTRALIZATION SERVICES:

Ø  Centralized authority exists in an organization when all or most decisions and orders come from a centralized source, usually the members from the top levels of the organizational structure.

Ø  Centralized authority comes from the top of the organization, flows down, and radiates out.

Ø  Information flows up to the top from all parties of the organization, where it is analyzed and synthesized so decisions can be made.

Ø  Once a decision has been made, orders flow down from the top of the organization through the process of delegation, where superiors confer authority on subordinates to accomplish certain tasks.

Ø   The top level remains in control and coordinates, monitors, and assesses all activities necessary for compliance with the order.

Advantages of Centralization:

1. Standardization of Procedures and Systems:

Ø   Centralization enables standardization of procedures and systems. It facilitates smooth working in the organization.

Ø  There is also a consistency in day-to-day working. The consumer service will also improve if standard policies are used.

2. Facilitates Evaluation:

Ø   When same policies are used for all segments of the enterprise their performance can easily be evaluated.

Ø  It also helps in comparing the results of different departments.

Ø  This will bring a sense of competition among various segments. Ultimately the overall performance will improve.

3. Economies:

Ø  Centralization of management will bring in economies of large scale. There will be a centralized buying and selling.

Ø  This will enable bulk buying resulting in discounts and savings in transportation expenses.

Ø  When sales are done in large quantities then customers are offered better terms and low prices.

Ø  There will be an economy in managerial expenses also.

4. Co-ordination of Activities:

Ø   Co-ordination of activities of various segments is also facilitated by centralized management. In the absence of centralization, different segments may pursue their independent policies. This may result in disunity and disintegration.

Ø  Centralized management will help in coordinating the work of different segments in such a way that organizational goals are achieved.

Disadvantages or Evils of Centralization:

1. Destroys Individual Initiative:

Ø   Centralization revolves around one person only.

Ø   One man takes all the decisions and decides the modes of implementing them.

Ø   Nobody is given the authority to use his own judgment even if there are glaring lacunae in the decisions.

Ø  It destroys initiative of subordinates.

Ø  They do not make any suggestions and just carry on with whatever has been conveyed to them.

2. Over Burden of Few:

Ø   This system gives all responsibilities to few persons in the organization.

Ø   They remain over-burdened with routine work while sub-ordinates do not have sufficient work.

Ø  The centralization of all powers do not allow the chief executive to devote sufficient time for important tasks of planning, coordinating and motivating.

Ø  In a decentralized set-up routine matters are left to the subordinates and manager concentrates on important administrative work only.

3. Slows Down the Operations:

Ø  The operations of the enterprise are slowed down under centralized set-up.

Ø  All decisions are taken only by one person and his unavailability keeps the matters pending.

Ø  Even clarifications about decisions are referred to the top which destroys invaluable time in formalities.

Ø  If the subordinates have powers to interpret decisions then operations can be toned up.

Ø   Things move very slowly in a centralized set up because everything has to pass through the manager.

4. Distance from Customers:

Ø   The customers do not come into contact with policy-makers.

Ø  They meet only those officials who do not have the powers to take decisions.

Ø  Moreover, one person cannot meet and know the reactions of customers regarding products and service.

Ø   This also comes in the way of intimate understanding of market situations by the chief executive.

5. No Scope for Specialization:

Ø  Centralization does not offer any scope for specialization.

Ø  All decisions are taken by one person and he may not be a specialist in all the areas.

Ø  In the present competitive world there is a need for employing the services of specialists.

Ø  The specialists will be able to introduce new things in their fields and they may improve the performance of the enterprise.

Ø  Even if specialists may be employed under centralized set-up, they will not be given a free hand in their areas.

Ø  They will keep on convincing the chief executive who is the ultimate decision-maker.

Ø   The specialists do not have any role in an organization with centralized authority.
               2. Decentralization counselling services:

Ø  A decentralized organization is one in which most decisions are made by mid-level or lower-level managers, rather than being made centrally by the head of the company.

Ø   It's the opposite of a centralized organization, in which all decisions are made at the top.

Definitions:

1. “Decentralization refers to tire systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points.” ----Louis A. Allen.
2. “Decentralization means the division of a group of functions and activities into relatively autonomous units with overall authority and responsibility for their operation delegate to timid of cacti unit.” –Earl. P. Strong.

Advantages of Decentralization

1.Reduces burden of top executives:

•       Concentrate one more important function.

•       Extend leadership.

2. Quick and better decisions:

•       Making accurate decisions without consulting higher levels.

3. Growth and diversification:

•       Facilitate growth and diversification of products and markets.

4. Better communication:

•       Improve organizational communication.

•       Reduce bureaucracy.

5. Development of executives:

•       Make for stability and continuity of the company.

•       Promote autonomy, initiative and creativity of subordinates.

6. Improvement in motivation and morale:

•       Improve the job satisfaction and morale of subordinates.

7. Effective supervision and control:

•       Result in effective supervision.

•       Promote effective control.

8. Democratic management.:

•       Make flexible operation.

Disadvantages of Decentralization

1.Uniform policies not followed:

Ø  Under decentralization, it is not possible to follow uniform policies unstandardized procedures.

Ø  Each manager will work and frame policies according to his talent.

2. Problem of Co-ordination:

Ø  Decentralization of authority creates problems of co-ordination as authority lies dispersed widely throughout the organization.

3. More Financial Burden:

Ø  Decentralization requires the employment of trained personnel to accept authority, it involves more financial burden and a small enterprise cannot afford to appoint experts in various fields.

4. Require Qualified personnel:

Ø  Decentralization becomes useless when there are no qualified and competent personnel.

5. Conflict:

Ø  Decentralization puts more pressure on divisional heads to realize profits at any cost.

Ø   Often in meeting their new profit plans, bring conflicts among managers.

A Combination of Centralization and Decentralization

Ø  These days, the two most significant concepts of business management are Centralization and Decentralization.

Ø   No corporation is completely centralized or decentralized. Each has its own positives and negatives, based on some principal factors.

Ø   Both these concepts should be treated as relative and not extreme concepts.

Ø  In other words, any corporation cannot be totally centralized or totally de-centralized.

Ø  Both have individual characteristics that when put to effect together would function effectively.

 

Difference between Centralized and Decentralized organization

 

Centralized Organization	Decentralized Organization
1. Environment steadier and more secure.	1.Environment is multifaceted, comprehensive and tentative.
2.Subordinate level executives are inexperienced in decision-making. Hence, there is purely a concept of dictatorship.	2.Subordinate level executives are inexperienced in decision-making but are given an opportunity to voice their opinions and suggestions.
3.Decisions are more noteworthy and momentous.	3.Decisions are relatively trivial and inconsequential.
4.There is a risk of Company breakdown or of encountering crisis.	4.The communal work culture allows subordinate level employees to lend a hand in the decision-making process by voicing their viewpoints in any situation.
5.Company is by and large outsized.	5.Company is geographically branched out.
6.Effectual execution of the strategies in an organization is based on the agreement of the subordinates over the occurrence of an event or happening.	6.Effectual execution of the strategies in an organization is based on the availability of a range of decisions made by subordinates due to more involvement and flexibility.