Introduction
When it comes to running a business, or rather an organization, it is a must that you understand all the aspects that are associated with it. One such aspect is where the tasks run smoothly, without a delay. This is where one has to take into account all the considerations like many of the things including how the tasks must be distributed. Now, the tasks have to be done in more of a streamlined manner where all the people are given responsibilities where they can actually work more efficiently and take the organization to newer heights.
This can happen by taking the very first steps such as delegation of authority. This is the one task that all managers must put into practice due to the fact that there is a lot of ground to cover. One can rest assured by bringing such things into practice that they can have the work done in a more efficient manner where deadlines can be met pretty easily.
Although there is a phenomenon where one must take the authority of the work given to them, it is also a must that one challenges their subordinates with new responsibilities. Since running an organization is not a one person job, so is the case with taking the authority for various things. It is a great thing for every manager to include their subordinates in the tasks and put them as one in authority.
Elements of Delegation of Authority
Now that you know what delegation of authority is, you must also know that it is not just transfer of tasks and authority to one's subordinates. However, the meaning seems to be a simple one, there are many benefits along with a fair share of risks involved. It is the job of a manager that they take into account the various risk factors along with the trust factor of their subordinates and then delegate the work accordingly.
Here are the three elements of Delegation of Authority:
Authority
Accountability
Responsibility
It is worth noting that these three may look like elements, but these are all predominant when it comes to the functioning of an organization. It has many effects for the organization, which can make or break it, in a major way.
Process of Delegation of Authority
The Process of Delegation of Authority has seven sequential steps. Each step has its significance and continuity. So it is important to understand every step then delegate the authority accordingly.
Step 1:
The first step in the process of delegation of authority is to set the goals for which we are assigning work to the subordinate.
Step 2:
After setting up the goals, the manager or the responsible person needs to define the responsibilities of the employee. This makes the employee learn or understand what he needs to do and whom he needs to report or take instructions.
Step 3:
In the process of Delegation of Authority, the third step is more crucial than all other steps. This step is about defining the Author to subordinates. The authority varies from employee to employee based on the job assigned to them.
Step 4:
The next step is to motivate all the subordinates. The manager is supposed to not only delegate or assign the work to the support units. He also needs to encourage his employees to work effectively and fastly by putting all their efforts. The manager also monitors all the day-to-day actions done by subordinates.
Step 5:
The process of delegation of authority also has accountability in its steps. The manager needs to hold accountability regarding his employees. The manager or company should not depend on the employees.
Step 6:
In the process of delegation of authority, the manager needs to train his subordinates according to the job assigned. If a new task is given to the employee in a different language, he needs to train his subordinate and ask him to learn and develop his skills by working on new tasks.
Step 7:
The last step in the process of delegation of authority is to control the employees by maintaining proper appraisals for the performance.
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Types of Delegation of Authority
We have four different types of Delegation of authority. Each type of Delegation of authority is based on different factors. They are-
General or Specific Delegation. It is based on the job assigned.
Formal or Informal Delegation. It is based on the process of giving authority.
Top to bottom or bottom to top Delegation. It is based on the hierarchy.
Lateral Delegation. It requires a group or team to work in parallel.
These are the various types of Delegation of authority.
Hence the delegation of authority is an art of getting things to be done by the subordinates. It is clear about the meaning of delegation of authority, elements, process types of the delegation of authority. It can be seen in every organization, so all the companies' tasks can be taken as a delegation of authority example.
FAQs on Delegation of Authority: Meaning and Importance
1. What is meant by delegation of authority in management?
Delegation of authority is a fundamental management process where a superior entrusts or passes down their authority and responsibility for specific tasks to a subordinate. It involves the downward transfer of authority from a manager to a subordinate to enable them to complete assigned duties. However, the manager remains ultimately accountable for the final outcome of the task.
2. What are the three essential elements of delegation as per the CBSE Class 12 syllabus?
The three essential elements or principles of delegation are:
- Authority: This refers to the power and right of an individual to command their subordinates, take decisions, and use organisational resources.
- Responsibility: This is the obligation of a subordinate to properly perform the assigned duty. It flows upwards, as the subordinate is always responsible to their superior.
- Accountability: This implies being answerable for the final outcome of the assigned task. A crucial point is that accountability cannot be delegated and always remains with the manager who delegated the task.
3. Why is delegation of authority considered important for any business?
Delegation of authority is crucial for business success for several reasons:
- Effective Management: It allows managers to focus on high-priority activities by entrusting routine tasks to subordinates.
- Employee Development: It provides subordinates with opportunities to learn new skills and develop their potential, preparing them for higher responsibilities.
- Motivation of Employees: Granting authority and responsibility acts as a psychological motivator, boosting the self-esteem and confidence of employees.
- Facilitation of Growth: It helps an organisation to grow and expand by creating a trained and experienced workforce ready to take up new leading positions.
- Basis of Management Hierarchy: It establishes the superior-subordinate relationships, which are the foundation of an organisational structure.
4. Can you give a real-world example of delegation of authority?
Imagine a Sales Manager who is responsible for the overall sales of a region. They delegate the authority to a Sales Executive to manage a specific territory. The manager grants the executive the authority to offer standard discounts to clients and use a company vehicle. The executive now has the responsibility to meet the monthly sales targets for that territory. If the targets are not met, the Sales Executive is answerable to the Manager, but the Sales Manager remains accountable to the Head of Sales for the entire region's performance.
5. What are some common barriers that prevent effective delegation?
Effective delegation can be hindered by factors related to both the superior and the subordinate. Common barriers include a manager's fear of losing control or feeling that subordinates are not capable enough. On the other hand, subordinates may avoid responsibility due to a fear of failure, lack of self-confidence, or insufficient resources and support from the manager. A lack of clear communication and trust between both parties is another major barrier.
6. Why can a manager delegate responsibility but not ultimate accountability?
This is a core principle of management. While a manager can assign a task (responsibility) and the power to complete it (authority) to a subordinate, they cannot pass on the final answerability for that task. Accountability flows from the very nature of a manager's position. The manager is assigned duties by their own superior and is therefore accountable to them for the results. Delegating a task to a subordinate is simply a tool to get the work done; it does not absolve the manager of their original accountability to the organisation.
7. How is delegation of authority different from decentralisation?
Delegation and decentralisation are often confused, but they are distinct concepts. Delegation is a process of sharing tasks and authority between a manager and their immediate subordinate, and it is essential for any organisation to function. In contrast, decentralisation is a strategic, optional policy decision that systematically disperses authority to the lowest levels of management across the entire organisation. Delegation is a micro-level activity, while decentralisation is a macro-level philosophy.
8. What happens if a manager delegates authority without assigning corresponding responsibility?
Delegating authority without equal responsibility creates a dangerous imbalance. It can lead to the misuse of power, as the subordinate has the right to make decisions and command resources but has no obligation to perform any task or achieve a specific outcome. This can result in arbitrary and irresponsible decisions, a lack of focus on organisational goals, and potential chaos within the team, as there is no framework to hold the subordinate answerable for their actions.
