Economics

Delegation of Authority / its objectives and importance

Delegation of Authority / its objectives and importance

Delegation of Authority / its objectives and importance

Meaning of Delegation of Authority

It is the assignment of duties, authority and responsibility to others. If they accept the assignment, then they become a delegate of manager are responsible for the assigned work. If it is not accepted, delegation is only attempted. It is the key to organisation. and Some important definitions of authority are as follows:

1. According to E.F.L. Brech, “Delegation means, in brief the passing on to other of a share in the four elements of the management process.”

2. According to Louis A. Allen, ” Delegation is the dynamics of management, it is the process of a manager follows in dividing the work assigned to him so that he performs that part which only, he because of his unique organisational placement, can perform effectively and so that he can get others to help him with what remains.”

3. According to Theo Haimann, “Delegation of authority merely means the granting of authority of subordinates to operate within prescribed limits.”

Main Elements of Delegation of Authority

The main elements of delegation of authority are discussed in the following ways:

1. Assignment of Duties- As a manager cannot do all the work he must allocate a part of his work to subordinates for the purpose of accomplishment by them. To delegate duties, the manager has to decide what part of his work he will keep for himself and what parts will be transferred to his subordinates.

2. Granting of Authority- In the process of delegating authority, the executive gives permission to the subordinates to use certain rights, such as the right to spend money, to use raw materials, etc. Effective delegation requires that the limit of authority should be made clear to each subordinate.

3. Creation of Accountability or Obligation or Responsibility- It creates an obligation on the part of the subordinates to perform duties satisfactorily. The subordinate, by accepting the assignment, takes on an obligation to his superior to complete the work and perform it well.

Importance of Delegation of Authority The main points of importance of delegation of authority are discussed below:

1. Facility for Business Expansion- As delegation provides the means of multiplying the limited personal capacity of the superior, it is instrumental for encouraging expansion and diversification of the business. So delegation provides facility for the expansion of the business.

2. Reduction of Manager’s Burden-Delegation enables the managers to distribute their workload. Thus they become free to concentrate more effectively of their management functions.

3. Vehicle for Co-Ordination- As the primary purpose of delegation is to establish structural relationships throughout the organisation, it results in securing coordination and achieving company unity.

4. Development of Subordinates- Delegation permits the subordinates to enlarge their jobs, to develop their capacity and to broaden their understanding. By forcing subordinates to assume greater responsibility and make important decisions, the superior insists on the development of subordinates, executive talents.

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