PRINCIPLES OF MANAGEMENT

PRINCIPLES OF MANAGEMENT

Qs. Discuss between delegation and decentralization. Cite some of the

important obstacles to effective delegation.

Delegation

A concept related to authority is delegation. Delegation is the downward

transfer of authority from a manager to a subordinate. It is a matter of
entrusting part of the work of operations or management to others. It is an
authorization to a subordinate manager to make decision, to requisition
resources, and to perform other tasks in a specified way. Delegation is how a
manager successfully assigns work to an employee to be accomplished.
Delegation is a three-step process including assigning responsibility, giving
authority, and creating accountability. These steps can vary between
organizations, but the process must be done smoothly and concretely.
Additionally, delegation can be completed based on assumed working
agreements that are already established by prior delegation relationships.
Delegation techniques are adjusted according to the nature of the work itself,
and by the type of person who will be completing the work. Delegation is an
essential skill for managers to use to make the best of their own time and
resources. It is the preferred approach to managing and coaching people
who have high skill and high will to complete the specific task at hand.

Importance of Delegation

Delegation is the dynamics of management and the essence of sound

organization. A single individual cannot manage and control everything due
to physical and mental limitations. The tasks involved in management of an
organization are too large and one particular person cannot discharge them
single-handedly. Therefore, he must divide his work load and share his
responsibilities with others. Once a man’s job grows beyond his personal
capacity, his success lie in his ability to multiply himself through other
people.
Delegation of authority provides the following advantages:
• It enables the managers to distribute their work load to others. By
reducing the workload for routine matters, they can concentrate on
more important policy matters.

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• Delegation facilitates quick decisions because the authority to make

decisions lies near the point of action. Subordinates need not approach
the boss every time need for a decision arises.
• Delegation helps to improve the job satisfaction, motivation and
morale of subordinates. It helps to satisfy their needs for recognition,
responsibility and freedom.
• By clearly defining the authority and responsibility of subordinates, a
manager can maintain healthy relationships with them. Delegation
increases interaction and understanding among managers and
subordinates.
• Delegation enables a manager to obtain the specialised knowledge and
expertise of subordinates.
• Delegation helps to ensure continuity in business because managers at
lower levels are enabled to acquire valuable experience in decision-
making. They get an opportunity to develop their abilities and can fill
higher positions in case of need. Thus, delegation is an aid to executive
development. It also facilitates the expansion and diversification of
business through a team of competent and contented workers.

Obstacles of delegations

Delegation is a two-sided relationship. It is a demanding function. It demands

sacrifices from both the delegator and delegate. The superior must be willing
to slice out a portion of his authority and the subordinate must be willing to
shoulder additional responsibilities.Successful delegation is a product of
psychological willingness of both the parties to accept responsibilities and
fulfill the obligation in a sincere way. The concept of delegation thus is very
easy to understand but difficult to operationalise or translate into concrete
action. Obstacles that can make delegation within an organization difficult or
even impossible can be classified into 3 general categories:

1. Obstacles related to the Supervisor

2. Obstacles related to Subordinates
3. Obstacles related to Organizations

Superior-related problems:
• “I can do it better myself “feeling: Some managers are reluctant to
delegate because of their belief that they can always take better
decisions and show good results than their subordinates. Managers

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suffering from an inflated sense of their own worth often end up doing
the subordinate’s work to the criminal neglect of their own
activities.The subordinate, as a result has very little to do except the
routine work which is monotonous, dull and boring to him.

• Managers are reluctant to delegate because delegation means

dilusion of authority and power. The importance of the superior is
reduced to the extent of the authority is transferred to the
subordinate. The subordinate may ultimately improve his skills
through consistent delegation and may turn out to be potential
competitor for the superior’s job.
• Sometimes managers may like to delegate but may not be able to do
it effectively because of their inability to identify and communicate
the essential features of his plans, policies etc.
• Delegation is not assuring bet. There is no guarantee that delegation
would turn out to be fruitful. So there is no substance in the argument
that delegation must be practiced strictly to improve results.
Moreover, if things go wrong, the superior is answerable and has to
face the music from many quarters. No wonder, executives who have
little or no confidence in their subordinates often reluctant to
delegate.

Subordinate-related factors:

• If subordinate finds it easier to depend upon the superior for taking

decisions or solving problems he may avoid accepting authority even
though the superior may be prepared to delegate it.
• Committing mistakes is an essential part of learning. If the subordinate
is deprived of that and he fears that he will be in for uncharitable
criticism even for a small genuine mistake, he will shrink from
accepting a job.
• A subordinate who believes that he does not possess the requisite
information and necessary resources required for turning out a
creditable performance may be generally unwilling to accept difficult
assignments.
• Subordinate who lack self confidence depend on the superior for
continuous coaching and guidance. They feel highly secure and
comfortable in the relationships of dependence with their superior’s.
They feel confused and a sense of loss of direction if they are entrusted
with authority to make decision’s independently.

• A subordinate may hesitate accepting more work delegated to him by

the superior if he does not get adequate incentives in the form of
recognition and credit and other monetary rewards. Accepting
additional duties usually involves mental effort and emotional

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pressures. Unless the new duties are sweetened by tangible and

intangible incentives, he may not take duties enthusiastically or may
even refuse to accept.

Organizations -related factors:

Sometimes superiors want to delegate authority and subordinate like to
accept delegation. But delegation may be hampered due to weakness in the
organization structure. Some these weaknesses are as follows:
• Inadequate planning,
• Splintered authority,
• Lack of unity of command,
• Absence of effective control techniques,
• Non-availability of competent managers, and
• Environment of internal distrust.
In any organisation, the degree of delegation depends upon several factors,
e.g. size of the organization, decentralized performance, management
philosophy, workload of managers, etc.
Decentralization

Decentralization is the process of dispersing decision-making governance

closer to the people or citizen. It includes the dispersal of administration or
governance in sectors or areas like engineering, management science,
political science, political economy, sociology and economics.
Decentralization is also possible in the dispersal of population and
employment. Law, science and technological advancements lead to highly
decentralized human endeavors. Decentralization is most effective in
organizations where subunits are autonomous and costs and profits can be
independently measured

Decentralization, in fact, is a fundamental phase of delegation. It is an

extension of the concept of delegation. However decentralization is much
more encompassing in nature than delegation.
According to Allen, decentralization is the systematic effort to delegate to the
lowest levels all authority except that which can be exercised at central
points. In other words, decentralization is the pushing down of authority and
power of decision making to lower levels of organization or the disposal of
the centres of decision making thought the organization. The transfer of
responsibilities and resources involves different relationships between the
central administration and the organizations to which the transfer is made.
The nature of these relationships, and the objectives of the transfer,
determine the form of decentralization

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Importance of decentralization

Decentralization has been looked at as a singularly useful mode of

administration to deliver the public services from convenient local centres
close to the clients' locality. Bringing administration to the doorstep of the
citizen and establishing a direct relationship between the client and the
administration have been the driving force behind decentralization in most of
the developing countries.
The urge for decentralization has come from many sources. Firstly, it has
been prompted by the need to deliver the basic public goods like food,
housing, water from local units of administration as soon as possible.
Secondly, most people in the developing countries live in rural areas which
are away from the National Capital located in distant urban area.
Administration has to 'penetrate' the rural areas and link these up with the
nation as a whole. Thirdly, in many countries sociological diversities manifest
themselves in ethnic, linguistic and religious differences. Administration
needs to be decentralized in response to regional diversities. Fourthly,
regional and local resources can be utilized for area development purposes,
only if administration would move out to the regions and localities.
Decentralization, therefore, facilitates local planning and development with
the help of local resources. Fifthly, decentralization has its own value in
political and administrative terms. Politically, local participation in
development activities, with intensive responses paves the way for
meaningful articulation of local demands.

The more decentralized a system is, the more it relies on lateral

relationships, and the less it can rely on command or force. Decentralization
is the policy of delegating decision-making authority down to the lower levels
in an organization, relatively away from and lower in a central authority. A
decentralized organization shows fewer tiers in the organizational structure,
wider span of control, and a bottom-to-top flow of decision-making and flow
of ideas. . The wider spans of control also reduce the number of tiers within
the organization, giving its structure a flat appearance.

For example, an experienced technician at the lowest tier of an organization

might know how to increase the efficiency of the production, the bottom-to-
top flow of information can allow for this knowledge to pass up to the
executive officers.

Advantages of Decentralization are:

• Decentralisation helps to reduce the workload of top executives. They

can devote greater time and attention to important policy matters by
decentralizing authority for routine operational decisions.

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• It helps to improve the job satisfaction and morale of lower level

managers by satisfying their needs for independence, participation
and status.
• Under decentralistion, authority to make decisions is placed in the
hands of those who are responsible for executing the decisions. As a
result, more accurate and faster decisions can be taken as the
subordinates are well aware of the realities of the situation.
• Decentralisation facilitates the growth and diversification of the
enterprise. Each product division is given sufficient autonomy for
innovations and creativity.
• When authority is decentralized, subordinates get the opportunity of
exercising their own judgment. They learn how to decide and develop
managerial skills.
• Mangers at lower levels have adequate authority to make changes in
work assignments, to change production schedules, to recommend
promotions and to take disciplinary actions. Therefore, more effective
supervision can be exercised.

Types of decentralization

Four different types of decentralization can be identified, viz., administrative,

functional, political and geographical.
Administrative decentralization refers to decentralization of authority to the
lower officials in the administrative hierarchy of organizations.
Functional decentralization implies that the functions are decentralized to
the specialized units or departments like education or health.
Political decentralization aims to give citizens or their elected representatives
more power in public decision-making
In geographical decentralization, the powers and functions of headquarters
decentralized to the field departments of the state government, which are
further decentralized to their field officers at the regional and district levels.
This facilitates quick decision-making keeping in view the local requirements.

Distinction between Delegation and Decentralization

The word 'decentralization' is often confused with delegation. Delegation is

not a transfer of authority but it is simply an assignment of authority to a
lower body by a higher level of government. Delegation is merely a
technique of administration or management while decentralization deals with

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deep urgencies of democracy. Like delegation, decentralization is also a

technique of administration. Decentralization denotes assignment of certain
functions to the agent of the central or state government in the field.
Example: The District Collector, being vested with authority over
development departments in the district is an example of decentralization.
The Commissioner of Police delegating powers to permit holding of public
meeting to the Assistant Commissioner of the concerned area is an example
of delegation.

The following are some of the differences between the two terms, though
these are employed interchangeably at times.

I. Delegation simply means pushing authority down to subordinates.

Decentralization involves: a) determining what authority to push
down to subordinates. b) Developing policies and rules to guide
subordinates who have the authority delegated them. c) Implementing
selective but adequate controls for monitoring performance.
II. Delegation is concerned with sharing of either managerial work or
operating work between a manager and a subordinate.
Decentralization, in a sharp contrast, is concerned exclusively with
sharing of managerial work, i.e. the power of decision making between
two managers.
III. Decentralization is a managerial philosophy; it embraces all areas of
management. Viewed in this angle, decentralization implies systematic
and company-wide delegation on the part of all managers who must
accept and practice delegation as a common philosophy or a way of
company life.
IV. Delegation can occur on an individual basis under which some
managers make wide delegation and others effect very little
delegation. Delegation can take place on a limited scale even in a
centralized organization. In other words, it can be used by a particular
executive in a specific area of the business without being a party to the
decentralization programme for the organization as a whole.
V. Decentralization represents a shrewd balance between delegation of
authority and centralized control. Finding the right balance between
autonomy and control is the crucial issue in the art of decentralizing.

VI. Delegation is the process and decentralization is the result. Delegation

is the key to organization. Organizing without delegation has no
meaning. Delegation is thus essential for group efforts.
Decentralization is optional. Further, in delegation control is exercised
at the top and in decentralization control is transferred to the
decentralized unit.

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Delegation and Decentralisation –A Comparison

Delegation Decentrali
1. It is a process or an act. sation
2. It denotes relationship between 1. It is the end result of delegation
a superior and a subordinate. 2. It denotes relationship between
the top management and various
3. It is essential for management departments or divisions
process. 3. It is optional as top
management may or may not
4. The delegator exercises control disperse authority.
over the subordinates. 4. The control may be delegated to
5. It is technique of management. departmental heads.
5. It is a philosophy of
management.

Effecting Delegation

Delegating a job effectively is the most important factor in delegation. The

skills and qualities of every person in the group for delegation task to be
assessed and analyzed... Include team members in the delegation process,
as they can provide certain new ideas or suggestions to help in this process.
Provide adequate support to the group in order to let them accomplish their
task successfully. Focus on results, analyze and assess their skills on a daily
basis in order to understand that the work delegated is accomplished
properly or not and which person is best suited for which work. Though there
are many aspects involved in leadership skills but delegation is also an
important quality to build if the employer wants successful management of
the tasks to the subordinates.

1) Assigns tasks to the most appropriate employee.

2) Assigns work by describing the end product / result and allows the
employee to control the resources and make the decisions to reach it.
3) Delegates work to the lowest appropriate level (providing that the
employee can finish the work, and it is in his / her area of expertise).
4) Recognizes opportunities to delegate.
5) Offers guidance and instruction based on each employee's needs.
6) Uses delegation to offer development experiences to others.
7) Assigns employees new responsibilities if appropriate.
8) Monitors after delegation to help employee reach goal.

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9) Balances responsibilities and tasks not delegated with those that have
been delegated.

Delegation is the entrustment by a party of work or responsibility and

authority to another and the creation of accountability for performance. A
delegation can also be a group of individuals, often called delegates, who
represent the interests of a larger organization or body, often from a
geographical area. Delegation (also called deputation) is the assignment of
authority and responsibility to another person (normally from a manager to a
subordinate) to carry out specific activities. However the person who
delegated the work remains accountable for the outcome of the delegate
work. It allows a subordinate to make decisions, i.e. it is a shift of decision-
making authority from one organizational level to a lower one. Delegation, if
properly done, is not abdication. The opposite of effective delegation is
micromanagement, where a manager provides too much input, direction,
and review of delegated work.

Delegation at Bharti Enterprises

What has made people stay on Bharti is the amount of freedom that is given
to given to them in their work. So much so that according to Sunil Mittal, he
stopped signing cheques some 16 years ago, a discipline that was brought in
when Bharti was still a small company. According to Rakesh Mittal, “Why
people like staying back is, one, they have a visionary in Sunil. Because a
person who comes into an organization has expectations of career growth
and when you have a visionary sitting at a top you have all-round growth.
Two, the work culture. We give a lot of independence. We delegate authority.
We let them do whatever they want to after the budgets have been finalised,
they can go head and meet the targets month after month.”

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