Business Studies Part I
Business Studies Part II

Delegation

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Delegation of Authority: Definition
Delegation of authority merely means the granting of authority to subordinates.

Elements Of Delegation:

  1. Authority
  2. Responsibility
  3. Accountability.

Importance of Delegation:

  • It leads to effective management as by relieving the employees from doing routine work, it provides them with time to excel in new areas.
  • It promotes employee development as they are entrusted with more opportunities to utilise their talent, perform complex tasks and assume those responsibilities which are likely to improve their career prospects.
  • It helps to motivate employees as when a subordinate is entrusted with a task, it is not merely the sharing of work but involves trust on the superior’s part and commitment on the part of the subordinate.
  • It facilitates the growth of an organisation as it seeks to enrich the quality of manpower and widens the scope of using internal recruitment by providing them with training and experience through exposure to varied jobs.
  • It provides the basis of management hierarchy as it establishes superior-subordinate relationships, which are the basis of hierarchy of management
  • It facilitates better coordination amongst the departments, levels and functions of management by providing clarity in reporting relationships.

S.No.

Basis

Authority

Responsibility

Accountability

1

Meaning

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

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

Accountability implies being answerable for the final outcome, onee authority has been delegated and responsibility accepted, one cannot deny accountability.

2

Delegation

Can be delegated.

Cannot be entirely delegated.

Cannot be delegated at all.

3

Origin

Arises from formal position in the organisation.

Arises from delegated authority.

Arises from responsibility.

4

Flow

Flows downward from superior to subordinate.

Flows upward from subordinate to superior.

Flows upward from subordinate to superior