MEANING:

DELEGATION OF AUTHORITY IS ONE VITAL

ORGANISATONAL PROCESS: It is inevitable along with the
expansion & growth of a business enterprise. Delegation means
assigning of certain responsibilities along with the necessary
authority by a superior to his subordinate managers.
Delegation does not mean surrender of authority by the
higher level manager. It only means transfer of certain
responsibilities to subordinates & giving them the necessary
authority, which is necessary to discharge the responsibility
properly.

DELEGATION IS NOT A PROCESS OF ABDICATION: The

person who delegates does not divorce himself from the
responsibility & authority with which he is entrusted. He remains
accountable for the overall performance & also for the
performance of his subordinates. Delegation is needed when the
volume of the work to be done is in excess of an individual’s
physical & mental capacity.

DEFINITION:
According to F.C. MOORE, “Delegation
means assigning work to the others & giving them the
authority to do so.”
 AUTHORITY

Authority is the power assigned to a manager. A manager

will not be able to function efficiently without proper authority.
Authority is the genesis of organizational framework. It is one of
the founding stones of formal organizations. An organization
cannot survive without authority.
According to Henry Fayol,” Authority is the right to give
orders & the power to exact obedience.”

RESPONSIBILITY

Responsibility indicates the duty assigned to a position.

The person holding the position has to perform the duty
assigned. It is his responsibility. The term “responsibility” is
often referred to as an obligation to perform a particular task
assigned to a subordinate.
In the words of Theo Haimann, “Responsibility is the
obligation of a subordinate to perform the duty as
require by his superior.”

ACCOUNTABILITY

Every employee/manager is accountable for the job

assigned to him. He is supposed to complete the job as per the
expectation & inform his superior accordingly. Accountability is
the liability created for the use of authority.
 According to McFarland, accountability “is the obligation
of an individual is report formally to his superior about
the work he has done to discharge the responsibility.”

OBJECTIVES:

WHY DELEGATION IS NEEDED ?

1. TO REDUCE THE EXCESSIVE BURDEN ON THE
SUPERIOR: Reduction of burden on the superior can be
achieved by entrusting repetitive activities to one or more of
his subordinates. In this way, delegation relieves the superior
from some of his burden & allows him to utilize his time &
talent for more important & urgent duties & responsibilities.

2. TO PROVIDE OPPORTUNITIES OF DEVELOPMENT TO

JUNIOR EXECUTIVE: The junior executive can learn
gradually the tasks, which his superior had been performing
earlier. It will qualify him in course of time for the latter’s
position when it fall vacant or when similar new jobs are
created in the organization. Thus, delegation serves two
purposes -viz.., it severs as an incentive to junior executive to
accept greater responsibilities, to learn to do new task & in
the process to develop the best of his potential. The process
of delegation alone can create good managers

3. TO IMPROVE INDIVIDUAL AS WELL AS

ORGANIZATIONAL EFFICIENCY: When a superior delegates
one of his tasks which he has been performing efficiently but
which he cannot do because of lack of time, the subordinate
to whom it is delegated will not be able to do it with equal
efficiency at the beginning. But if the subordinate selected
has the ability & if he is trained properly, he will learn quickly
 & will be able to do the job efficiently. Thus, delegation can
help to raise the efficiency of the organisation as a whole.

PROCESS OF DELEGATION OF AUTHORITY

1. ASSIGNMENT OF DUTIES TO SUBORDINATES: The

delegator has to decide precisely the duties, which are to be
delegated to the subordinate. The subordinate is told what is
expected from him. Competent & responsible employees are
may be given general guidelines whereas less competent
ones are given more specific guidelines.

2. TRANSFER OF AUTHORITY TO PERFORM THE DUTY: In

the second stage of delegation process, the authority is
transferred by the delegator to his subordinate (delegatee).
Authority must be delegated only to perform the assigned
duty. The performance suffers serious setback when required
authority is not delegated along with the duty.

3. ACCEPTANCE OF THE ASSIGNMENT: In this third stage of

delegation process, the delegatee has to accept or reject the
task assigned to him in the first stage along with the authority
given in the second stage. If he refuses, the delegator has to
make fresh plan or may consider some other subordinate who
is capable & is willing to accept the assignment. On the other
hand, the process of delegation will move to next stage, if the
first delegatee accepts the assignments of work
accompanying the authority.

4. CREATION OF OBLIGATION: The fourth stage in the

delegation is the creation of obligation on the part of the
subordinate to perform duties assigned to him in a
 satisfactory manner by using the authority. When subordinate
accepts a task & the authority is given, an obligation is
created. He has to perform the assigned tasks by using the
authority granted to him.

PRINCIPLES OF DELEGATION OF
AUTHORITY

1. AUTHORITY SHOULD BE CO-EXISTENT WITH

RESPONSIBILITY: This principle suggests that when
authority is delegated, it should be commensurate with the
responsibility of the subordinate. There should be proper
balance between the authority & responsibility.

2. PRINCIPLE OF UNITY OF COMMAND: This principle

suggests that everyone should have only one boss. A
subordinate should get orders & instructions from one
superior & should be made accountable to one person only.
Unity of command also removes overlapping & duplicating of
work.

3. THE SCALAR PRINCIPLE: This principle maintains that there

should be clear & direct lines of authority in the organisation,
running from the top to bottom. The subordinate should know
who delegates authority to him & to whom he should contact
for matter beyond for matters his authority.

4. PRINCIPLE OF FUNCTIONAL CLARITY: This principle

suggests that, the activities are classified & grouped to create
departments. The job positions, the result expected, the
activities to be undertaken & the authority content should be
made clear to the delegatee.
5. PRINCIPLE OF ABSOLUTENESS RESPONSIBILITY: This
principle suggests that it is only the authority, which is
delegated, & not the responsibility. The responsibility is
absolute & remains with the superior. Even when the manager
delegates authority to his subordinate, he remains fully
accountable to his superior because responsibility cannot be
divided. He is responsible for the acts & omissions of his
subordinates.

6. USE OF EXECEPTION PRINCIPLE: This principle indicates

that when authority is delegated, it is expected that the
subordinate will exercise his own judgement & take the
decisions within the purview of his authority. He is to be given
adequate freedom to operate within his authority. He should
refer the problems to the top-level management only when he
is unable to take decisions.

7. PRINCIPLE OF COMPLETENESS OF DELEGATION: The

principle of delegation suggests that there should be
completeness in the process of delegation. The process of
delegation should be taken to its logical end. Otherwise, there
will be confusion of authority & accountability.
 BARRIERS ON THE PART OF
SUBORDINATE
1. TOO MUCH DEPENDENCE ON THE MANAGER: Some
ordinates avoid responsibility even when the superior is
prepared to delegate authority. A subordinate who is not
confident about his ability will certainly try to shirk
responsibility.

2. FEAR OF CRITICISM: Subordinates express

unwillingness to accept
delegated authority because of the fear of criticism. They
fear that they may be criticised by others if they commit
mistakes.

3. LACK OF INFORMATION: A subordinate may hesitate

to accept a new assignment. When he knows that necessary
information to perform the job is not likely to be made
available to him.

4. ABSENCE OF POSITIVE INCENTIVE: Positive incentives

like recognition of work and rewards go a long way in building
 up the morale of subordinate. In the absence of such
incentives, a subordinate may not be prepaid to accept
delegation.

5. LACK OF SELF-CONFIDENCE: A subordinate may lack

self-confidence to take quick & correct decisions. Thus, lack of
self- Confidence is one obstacle in the delegation of authority.

6. DIFFICULTY IN DECISION-MAKING: A subordinate may

not have the skill & the expertise to take quick & correct
decision. He prefers to go to his superior & ask for the
guidance. It acts as a cause for non-acceptance of delegation.
7. POOR SUPERIOR-SUBORDINATE RELATION: Absence of
cordial relations between the superior & the subordinates
hampers the process of delegation of authority.

8. UNDUE INTERFERENCE BY SUPERIOR: Some superiors

interfere in the work of their subordinates. Here, the
subordinates become uneasy & prefer to remain away from
the process of delegation.

9. FEAR OF BEING EXPOSED: Some subordinates feel that

they have limited capacity to accept the challenges, which are
bound to come due to delegation. They feel that their
inefficiency & inability will be exposed. This fear is an obstacle
to delegation.
 IMPORTANCE OF EFFECTIVE
DELEGATION
It is necessary to give attention to the following points for
effective delegation authority:

1. KNOWLEDGE OF WHAT TO DELEGATE & ALSO WHAT

NOT TO DELEGATE: If a manager tried performing duties
which might better be delegated, he will find himself buried in
details, performing the work of his subordinates. On the other
hand, if he delegates authority, which he should exercise
himself, he will find his position in danger & his subordinates
will frequency comes in conflict with him & also with one
another. To avoid this, a manager should delegate only
routine function & reserve to himself the authority for making
final decision.

2. DECIDE THE QUANTUM OF AUTHORITY TO BE

DELEGATED: A theoretically correct answer to this question
is that authority should be exactly equal to the responsibility
delegated. If the delegated authority is in excess of
responsibility, there is a danger that the subordinate may be
tempted to misuse it. On the other hand, if a subordinate is
assigned responsibility without adequate authority, he would
be to unable to fulfill his responsibility & will feel frustrated. It
is therefore necessary maintain a balance between authority
& responsibility.

3. DEVELOP NECESSARY KNOWLEDGE & SKILL TO

DELEGATE: A superior should, while delegating make clear
the extent of authority & responsibility given to subordinate.
The subordinate should be asked to report back periodically
with completed work. This will give the superior an
 opportunity to judge the progress of the subordinate. If he
finds that the subordinate is not likely to complete the task,
he should give additional help for its completion.

CENTRALISATION AND DISANTRALISATION

1. CENTRALISATION

MEANING
Centralisation refers to concentration of
decision making authority in the hands of top management.
Lower level personnel’s are asked only to implement the
decisions taken by the top management. Basically, every
organisation starts with centralized decision-making structure.
With the growth of the organisation come a number of
problems & challenges which centralization is not able to cope
up with.

DEFINITION
According to Louis Allen, “Centralisation is
the systematic & consistent reservation of authority at central
point within the organisation.”
FEATURES

1.USEFUL IN SMALL BUSINESS: A small sized business

employs lesser number of people. Its activities are conducted
on a limited scale. Here centralisation of authority is much
more helpful & economical.

2.QUICK DECISION-MAKING: Decision making is quicker

under centralisation because lesser number of people are
associated with decision making process.

3. UNIFORMITY OF ACTION: Uniformity of action results in

integration of activities of the enterprise. This may result in
economies of scale & better bargaining power. Centralised
purchasing function is an example of this.

4.FACILITATES LEADERSHIP: In the early stages of an

enterprise & in a small firm, authority is centralized to
facilitate personal leadership.

5.HANDLES EMERGENCIES: Cenralisation provides instant

handling of emergencies because no consultations are
required.

6.IMPROVES EFFICIENCY: Centralisation removes

overlapping & duplication of work. At the same time wastage
& inefficiency are eliminated & efficiency is improved.
7. CREATES SPECIALISATION: Centralisation provides
outstanding results through specialization. Decision-making &
control are exercised at higher level. Right man is put to the
right job & performance improves.

ADVANTAGES

1.ECONOMICAL: Centralisation is economical as the

activities & operations are integrated & the duplication of
work & operating overheads are avoided.

2.PROMPT DECISIONS & ACTIONS: In centralisation, top-

level management makes decisions. Consultation is not
required. As a result, quick decisions & follow-up actions are
possible.

3.PROMOTES UNIFORMITY OF ACTIONS: There are

uniform rules & procedures. As a result, there is uniformity in
the operations of departments, divisions, branches, etc.

4.LESS PAPERWORK: In centralisation, decision-making is

quick direct & also there is personal involvement by the top
management. Scrutiny of reports, correspondence, etc. is
avoided. Naturally, paperwork involved is limited.

5.SUITABLE TO SMALL BUSINESS: Centralisation is

convenient in the case of small business due to limited
activities.
6.FACILITATES COORDINATION: Because of centralisation
of authority, activities of a small business are well-co-
ordinated.

DISADVANTAGES OF CENTRALISATION

1. RESTRICTS THE PROCESS OF DELEGATION: In

centralisation, functions, duties & responsibilities are
concentrated in the hands of few managers. This restricts the
scope of delegation & decentralization which is harmful to
large organization.

2.IMPOSES HEAVY BURDEN ON TOP EXECUTIVES: Due to

centralisation, the decision-making power rests with few top
executives. This puts heavy burden on top executives. They
have to face mental tension & even their decisions may not
be appropriate on all times.

3.SUBORDINATES SUFFER: In centralisation, limited

authority is given to subordinates. They are like machines &
have to act as per decisions taken at the top-level. The
opportunity to learn, to accept new responsibilities & also of
self-development is not given to them.

4.LIMITED DEDICATION & MOTIVATION: In centralisation,

decisions are imposed on lower levels. Subordinates work as
 per orders issued. There is no motivation to work hard.
Centralisation kills initiative, self-reliance & motivation.

5.COMMUNICATION DIFFICULTIES: In the absence of

efficient communication system, centralisation may lead to
communication gap between higher & lower levels of
management. This may lead to inefficiency, lack of
management. This may lead to inefficiency, lack of
coordination & confusion on the part of subordinates.

DECENTRALISATION

MEANING
Decentralisation of authority means
conscious/systematic effort to bring dispersal of decision-making
power to the lower levels of the organization.
Decentralisation is delegation not from one
individual to another but delegation to all units in an
organization. Decentralisation is the tendency to disperse
decision-making authority in an organization.

DEFINITION
 “Everything that goes to increase
the importance of the subordinate’s role is
decentralisation, everything that goes to reduce it is
centralisation.”

- HENRY FAYOL

WHEN IS DECENTRALISION NEEDED?

1. Decentralisation is necessary in order to introduce

democratic spirit in an organization.

2. Decentralisation is necessary along with the

expansion of a business enterprise.

3. Decentralisation is necessary to enjoy advantages of

better administration.

4. Decentralisation is needed as it facilitates the

process of delegation of authority.

5. Decentralisation is a progressive & democratic

concept
FACTORS AFFECTING DECENTRALISATION

1. PHILOSOPHY OF THE TOP MANAGEMENT: The

philosophy of the top management as regards
decentralisation is a key factor influencing the extent of
decentralisation. Top management may not like interference
in its authority. As a result, the scope for decentralisation will
be reduced. If the top management believes in giving powers
at lower levels, the extent of decentralisation will be more.

2. AVAILABILITY OF COMPETENT MANAGERS: Superiors

will like to introduce decentralisation on a large scale if
competent managers are available at the lower levels. The
extent of decentralisation will be limited if there is shortage of
competent managers at lower levels.

3.DESIRE FOR UNIFORMITY: The extent of decentralisation

will be less when the uniformity in the policy is of critical
importance in running the enterprise. On the other hand, the
extent of decentralisation will be more when uniformity in the
policies is not expected.

4.SIZE OF THE ORGANISATION: If the size of the

organisation is large, decentralisation is the only choice.

5.NATURE OF THE ENTERPRISE: Decentralisation is more

common in the case of newly established as well as fast
growing enterprises.

6.OPERATIONS OF AN ENTERPRISE: In some enterprises,

the business activities may be conducted at different places &
decisions are taken at different places. In this case, the extent
of decentralisation will be more. Thus, dispersal of business
operations leads to high degree of decentralisation.

7.HISTORY OF THE ORGANISATION: Many organisations

grow in a gradual manner. They introduce decentralisation
along with such expansion. Only the top management takes
important policy decisions & the other decisions are taken at
the level of departments, branches, plants & so on.

8.COST & IMPORTANCE INVOLVED IN DECISION: The top

management usually takes the key policy decisions & the
decisions, which involve heavy investment. Decisions, which
are less costly, are delegated to lower levels. This means
decentralisation is introduced.

9.INFLUENCE OF EXTERNAL FACTORS: External factors

such as government controls, tax policies, licensing, etc.
affect the degree of decentralisation.
 DECENTRALISATION IS THE TENDENCY TO DISPERSE
DECISION-MAKING AUTHORITY

1.RELIEF TO TOP EXECUTIVES: Concentration of authority

overburdens the top executives with multiple duties. Because
of pressure of work, top executives do not find time to look
after basic functions like planning, controlling & coordination.
The only alternative left is to reduce the load of duties by
systematic decentralization of authority.

2.DEVELOPMENT OF MANAGERS: Decentralisation creates

people who have mastered the techniques of professional
management not simply of supervision. Managers competent
to independently bring up their units should be selected,
trained & motivated to account for profitability.
Decentralization will facilitate masterly planning & its
execution by managers.

3.DEMOCRATIC APPROACH: Decentralisation is concerned

with distribution of power among subordinates. Employees
expected to do complete job come together & report to a
common superior.

4.QUALITY DECISIONS: When more number of decisions are

made at lower levels, management has to introduce
decentralization. As there is limited consultation with
superiors, the process of decision making is made speedier.
This improves quality of decisions.

5.SIZE OF THE BUSINESS: When an organization is large &

complex having capable managers, more decentralization is
always preferable. With a fast & effective communication
system, e.g. computerized management information system,
there are decentralization tendencies. All these resulting into
dispersal of decision making authority.
GUIDELINES FOR EFFECTIVE/ SUCCESSFUL DELEGATION

1.DETERMINE OBJECTIVES: Before taking broad decisions

on delegation, the objectives of delegation should be clearly
determined. As a first step, it is necessary to determine the
goals expected to be achieved. Since objective are end
conditions sought by performing the task, the subordinate
knows what he is trying to accomplish.

2.PROVIDE INCENTIVES: Subordinates will accept

delegation and take interest in the new duties assigned only
when they are properly motivated through suitable incentives.
Such incentives may be appreciation of good work/promotion
or monetary benefit.

3.MAINTAIN FAVOURABLE ATMOSPHERE: There should

be favourable atmosphere in the organization for delegation.
Mutual confidence, attitude of a cooperation & team spirit
create such atmosphere.

4.ASSIGN DUTIES & GRANT COMMENSURATE

AUTHORITY: It is important to determine all the duties that
must be performed in order to complete the task at hand.
Thereafter, the whole job should be assigned. Defining the job
at the very start of a project brings proper perspective & the
amount of authority needed to ensure parity of responsibility
& authority.

5. SELECT COMPETENT SUBORDINATES: It is necessary to

select most suitable subordinate for the job. The best
subordinate for the job is the person who is properly qualified,
trained & is willing to accept full responsibility for attaining
stated objectives. If a choice must be made between two
subordinates with one possessing the necessary skills &
experience but unwilling to assume responsibility & for other
short on experience but willing to assume responsibility, it is
advisable to choose the latter.

6.DELEGATION IN RIGHT HANDS: Delegation of authority

should be in right hands so that misuse of authority is
avoided. For this purpose, selection of competent
subordinates is of vital importance.

7.DELEGATION BASED ON LEARNING: The subordinate’s

cannot become experts from day one. They should be allowed
 reasonable time to experiment & learn form mistakes. While
delegating authority, the subordinates should be told that it is
their training for future assignments.

8. RETAIN IMPORTANT TASKS: An important principle of

delegation is to retain certain task, involving confidential
information, by the manager himself. Matters involving
department budget or personnel problems need not to be
delegated, as they are delicate in nature. However, repetitive
work should be delegated to the maximum possible extent.

9.DEVELOP PROPER MOTIVATION: Motivation of

subordinates is essential for effective delegation Subordinates
should be encouraged for self development so that they will
have capacity to accept new duties & responsibilities.
Promotions should be given when the delegatee proves his
competence. Such motivation facilitates easy acceptance to
delegated duties.

10. PROVIDES TRANING FACILITIES: Training develops skill,

which are necessary for performing duties with confidence.
Thus, should be provided so as to enable subordinates to
handle their delegated jobs properly.

OBSTACLES/ BARRIERS ON THE PART OF

MANAGER/SUPERIOR

1.UNWILLINGNESS OF MANAGER TO DELEGATE

AUTHORITY: Some managers tend to think that they can do
the job better when they themselves handle the jobs. The
attitude that “I can do it better myself “on the part of superior
acts as an obstacle to delegation.
2.FEAR OF COMPETETION: A manager may feel that if he
has a competent and if he delegates authority to subordinate,
quite likely he will outshine him. Fear of subordinate’s
excellence may come in the way on delegation.

3.LACK OF CONFIDENCE IN SUBORDINATES: A manager

may hesitate to delegate, if he feels that his subordinate is
not competent to deal with the problem and take decision.
Fear of losing control over the subordinates and fear of being
exposed due to personal shortcomings may acts as an
obstacle in the process of delegation.

4.LACK OF ABILITY TO DIRECT: sometimes, a manager

may experience difficulty in directing the efforts of his
subordinates because of his incompetency.

5. ABCENCE OF CONTROLS THAT WORNS OF COMING

TROUBLES: An organisation might not have developed the
controlling techniques to know in advance the serious
problems lying ahead. This may happen due to concentration
of authority. As a result, manager may resist delegation.

6.CONSERVATIVE AND CAUTIOUS TEMPERAMENT OF

THE MANAGER: If a manager has conservative and over-
cautious approach, there will be psychological barrier in the
way of delegation.

ADVANTAGES OF DELEGATION OF AUTHORITY

1.RELIEVES MANAGER FOR MORE CHALLENGING JOBS:

Delegation makes it possible for the managers to distribute
their work load to others. Thus, managers are relieved of
routing work and they can concentrate on higher functions of
management like planning, organizing, controlling, etc.

2. LEADS TO MOTIVATION OF SUBORDINATES:

Subordinates are encouraged to give their best at work when
they have authority with responsibility. They take more
initiative and interest in the work and are also careful and
cautious in their work. Delegation leads to motivation of
employees and manpower development.

3.FACILITATES EFFICIENCY AND QUICK ACTIONS:

Delegation saves time enabling the subordinates to deal with
the problems promptly. They can take the decisions quickly
within their authority. It is not necessary to go to the superiors
for routine matters. This raises the overall efficiency in an
organisation and offers better results in term of production,
turnover, profit and so on.

4.IMPROVES MORALE OF EMPLOYEES: Delegation raises

the morale of subordinates as they are given duties and
supporting authority. They feel that they are responsible
employees. The attitude and outlook of subordinates towards
work assigned becomes more constructive.

5.IMPROVES TEAM SPIRIT: Due to delegation, effective

communication develops between the superiors and
subordinates. The subordinates are answerable to superiors
and the superiors are responsible for the performance of
subordinates. This brings better relations and team spirit
among the superiors and subordinates.
 6. PROVIDES CONTINUITY: An organisation requires its
operations to go on continuously without any interruption. In
the absence of the manager due to promotion, resignation,
illness, leave, outstation business duties or for any other
reason, the work does not suffer because delegation of
authority ensures smooth conduct of business.

7. DEVELOPS CORDIAL RELATIONSHIPS: The superiors

trust subordinates and gives them necessary authority. The
subordinates accept their accountability and this develops
cordial superior-subordinate relationships.

8.PERFORMS KEY ROLL: Delegation of authority is the key

to organisation. Without delegation there would be no
organisation. It will be only one-man rule.

9. FACILITATES MANAGEMENT DEVELOPMENT: Delegation

acts as a training ground for management development. It
gives opportunity to subordinates to learn, to grow and to
develop new qualities and skills. It builds up a reservoir of
executives, which can be used as and when require.
Delegation creates managers and not mere messengers.