CHATEX 14
Delegation and Decentralisation
CHAPTER OUTLINE
14.1 Concept and Elements of Delegalion
14.2
Signiticance of Delegation
143
14.4
Difficullies in Delegation
Decentralisation ot
Authoriy
14.5
Deceniralisation vs Delegation
14.6 Centralisation of Authority
14.7 Centrallsation vs Decentrallsalion
Delegation of authority is a process by which a manager assigns some of the
his subordinate
within his work jurisdiction to
tasks
nm to exercise authority on his behalf
on a selective basis, allows
to accomplisn the tasks and makes him
accountable for performance. Delegation of authority 1s at the core ot the process
of
organising and entails the establishment of superior-subordinate relationships
among
the members of the organisation. The manager lo whom authority is
delegaled by his superior is empowered to decide and do certain specified ihings.
Another related term which we will take up in this chapter is decentralisation
use
The
about
term,
oftheauthoriy.
way many people
same thing as delegation-simply
the
decentralisation means
pushing authority down to subordinates,
much
than sumple
But
decentralisation
means
more
delegation. Lecentralisation is
a phulosophy of organisation and management, one that implies both selective
disbursal and concentration of authority:' It involves selectively determining what
authority to push down into the organisation; developing plans (such as policies)
to guide Subordinates who have this authority delegated to them; and
implementing selective but adequate controls for monitoring performance. Thus,
decentralisation is a philosophy of organisation and management which involves
both selective delegation of authority as well as concentration of authority through
the imposition of policies and selective but adequate controls.
cONCEPT AND ELEMENTS OF DELEGATION
Meaning of Delegation of Authority
Louis A.
Allen
has defined delegation of authority in the following words,
the
dynamics of management; it the process a manager lollows
is
"Delegation
in dividing
he
the worK assigned to him so that performs that part which only
he, because of his unique organisational placement, can perform and so that ne
s
can elfechvely get otners to help him with what remains."
ess by which an executive, land, "Delegation is that part of the
organisn8
others to share the work of carrvin
srator or a manager makes it possible
n g duties, respoisihompany's purpose. It also includes
the p
he expects to a l a him in d o i n g the work
e s a n d authority to those to whom
k
elegation of authority means the
em the requisite auionty
Unchribute their load of
tons which they
can
functione
assignment
work
accomplish
othersa
the
job
aoers
the
assigned. It enables
work to
manages
others and
on more
perform better because of concentrate
mp
their
in
of
to
to
position the on
st
share
his
burden?
Firstly,
he
musten
share
his
burden
with others. How can he
wst share huS Durdenristuy, ne must
to
others
entrust
the
of
work he would otnerwise have to do
performance
part
he
must
himself;
secondly,
ans of checking upP the work that is done for
proviae
him to ensure that it is done
as
Delegation is the.
nisation.
a
o
means
ne.
Wishes.
Elements
in the
Delegation
authority involves three elements:
of
Assignment
Responsibility. The superior entrusts some responsibilhty
duty to subordinate for
Granting of Authority. The performance.
The p rocess
()
of delegation of
or
(i)
Process of
to
a
carry
out the
duty
superior grants authority
assigned.
to the
This may include
subordinate
right
spend money, engage people, etc.
(ii) Accountability tor Performance. The last step in delegation
is concerned
with
creating an obligation to carry out duty or responsibility and render
an account ot the results achieved
through the use of delegated authority.
The
must
subordinate
granted to him.
becomes
to
use
resources,
be held accountable for the exercise of
By accepting the duties and authority, a subordinate
responsible
authority
to his
superior.
Responsibility
Responsibility denotes the work or duties assigned to a person by virtue of his
position in the organisation. It refers to the mental and physical activities which
must be performed to carry out a task or duty. That means every person who
kind of mental or physical activities as an assigned task has
performs some
well,
responsibility'. In order to enable the subordinate perform his responsibility
of him. In other
the superior must clearly tell the former as to what is expected
words, the delegant
must determine
clearly
the task
or
duty
that is
assigned
to
in terms
the operations of a machine, the
if he is asked to produce a certain number of
duty is in terms of function. But terms of
target or objective. Determination of
of a product, the duty is in
pieces
what standards
enable the subordinate to know by
in terms of objectives will
delegate. The duty must be expressed either
of objectives. If a subordinate is asked to control
the
in terms of function
or
duies
his performance will be evaluated.
Authority
Authority
is the
right granted
to
an
employee to make possible
the
performance
30
Principles
and Practice of lunagemen
work assigned. Power to procure or use raw materidls, spend money, or a
ask
e n t of money, to hire snd fine peopke, ec. has to be delegated to individo
nom the work is assigned. For instance, it the rlant Manager assigneo
O
Manager with the production of particular lype ot goods and seru.e
ewill also grant hin the authority to use malerals, noney and machinery
wOrkes and so on to fulfil the production schedule prescribed as his duty
Accountability
Accountability
n
teris ot
is
the
obligation
pertormance
to
carry
out responsioty
slandards established by
the
and
hire
exercise authon.
superior. Creation
accountability is the process of justitying the 8ranting ol duthority to a subordina
for
the
accomplishment of particular task.
standards
In order
a
to nmake
thus
process eftectiv
pertormance
assigning a task and
should be
accepted by the subordinale. An important principie o
8overning this basic relationship is that ot single accountability. Anmanagement
individ
should be answerable to only one immediate superior and no more
the
should be determined belore
of
Accountability is logical derivative of authority. when a subordiante is given
assignment and is granted the necessary authority to
complete it, the final
basic
phase
relationship holding the subordinate responsible
organisation
tor results. In other
words, the
an
in
is
subordinate
the
assignment by the fair use
Tesponsibility assigned. This, it can
accountability moves upward.
Can Both
Authority
Authority is the
him to do the work
and
assigned.
Sense ot
task
right or power granted
effectively. The right
That means,
accountability
assigned
Responsibility
authority
or
etc. has to be
authority
cannot be
and exercise
The extent of
authority
moves
whereas
Responsibility be Delegated?
spend money, hire people,
is
an
undertakes
oDligation
of authority and account tor the to complete
discharge of
be said hat
downward
can
to
an
to
ndividual to make
procure
poOssible
for
or to use raw
materials,
delegated to the persons to whom work
be delegaled. But
responsibility in the
delegated. It
is an
obgation
authority judiCiously.
to
carry
out
he
accountability depends upon the extent of delegation of authority.
accountability
but he cannot
cannot be
delegate
his
delegated.
responsibility
A
manager can
job. He
to do the
delegate
remains
accountable for the results of the subordinates. The
of the superior
accountability
tor acts of his subordinates is unconditional.
Accountabilty moves upward because
person is always accountable to the executive who
to
delegaled authority him.
authority is downward.
Accountabilty cannot be delegaled. Though it is incurred as a nesult of assignment
duty and conferring of authority, accountability in itself cannot be
delegated.
On the other hand, the flow of
of
The
delegant cannot abdicate responsibility.
for that which the latter has
delegated
He remains accountable to his
to him. Since
superior
accountability
cannot
be
delegated, the accountability of persons higher in the hierarchy
for the acts
of the
subordinates is unconditional. This can be illustrated
by an example of three
executives represening different levels of
management.
Ountap ana
Co
ion of his
rminati
This
authority flows
illustration also shows that
accountable
will
upwara.
lows
hierarchy ot
Types
Tne
be
Subordinate
to
over h i m
is
his boss who
organisation.
of Delegation of
ol
Delegation
0
because of negligenceof duty.
downward and accountabilty
se
Written
authority
Authority
oral delegation.
or
writing, oral delegation
of
delegation,
relained
by
Perferably authority
must
confusion and
may create
general
(i) Delegation
specific authority.
or
in
misunderstanang.
In
of 8enea
and spirit as
case
same form
of work and authony
delegated in the
original officer. If only specific part
the authority
the
situation
be delegated
different
take the following forms under
can
is
is delegated, it will be specific delegation.
(iin)
Soft
has to
level.
this
the delegatee
of hard delegation
is generally at lowe
himself. This sort of delegation
in
do the work
levels of management
Soft delegation takes place at higher
ot o t h e r
with the help
work
to
has
perform
delegation. In the
and hard
case
the
delegatee
colleag es.
(i) Lateral delegation.
In this
delegation the
subordinate has to
level.
his colleagues of his o w n
assume
work with
The subordinates themselves
delegation.
Informal
without
the
(v)
case
Piease their
help of
superiors and
use
his
authorities
pertorm
work
just to
any
formal
delegation.
14.2. SIGNIFICANCE OF DELEGATION U
formal right to
organisation's
Delegation of authority
down the chain of
is
passed
partially
command as vested in the topP management
positions.
creation of a hierarchy of managerial
command in a graded m a n n e r by
are vertically tied together through
in
the
hierarchy
positions
All managerial
created by the
these relationships are
and
relationships
authority-responsibility
in the organisationn
of authority. Each managerial position
of
delegation
process
and obligations which
relationship
responsibilities,
of
roles,
is a cluster
rights,
to function in certain ways.
demand the person occupying that position
is
a
process by which
the