Chapter – 8 DELEGATION OF AUTHORITY AND DECENTRAILISATION
DELEGATION OF AUTHORITY AND DECENTRALISATION
Introduction
Authority is the power to make decisions which guide the actions of others.
Delegation of authority contributes to the creation of an organization.
Definition
It is “Right of decision and command”
Characteristics of Authority
1.
Basis of getting things done
2.
Legitimacy
3.
Decision-making
4.
Implementation
Sources of Authority
There are three theories regarding the sources of authority.
1.
The formal authority theory
2.
The acceptance of authority theory
3.
The competence theory
1. The formal authority theory
Authority flows from top to bottom through the structure of an
organization.
Board of Directors
General Manager
Sales Manager
Sales Representative
Workers
2. The acceptance of authority theory
Authority flows from the superior to the subordinates whenever there
is an acceptance on the part of the subordinates.
Zone of acceptance depends upon various factors like rewards,
subordinate behavior pattern, dismissal or non acceptance results,
special knowledge, confidence etc.
3. The competence theory
This type of authority is invested with the persons by virtue of the
office held by them.
Delegation
Meaning: Delegation is a process which enables a person to assign a work to
others and delegate them with adequate authority to do it.
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Chapter – 8 DELEGATION OF AUTHORITY AND DECENTRAILISATION
Importance of Delegation
It is the most important methods of training subordinates and building
morals. This helps to concentrate on planning, organizing and controlling.
Elements of Delegation
1.
Assignment of duties or responsibilities
2.
Delegation of authority
3.
Accountability
Principles of Delegation
¾ Delegation to go by results expected
¾ Delegation of authority but Non-delegation of responsibility
¾ Authority and responsibility should commensurate with each other
¾ Unity of command
¾ Definition of limitations of authority
Types of Delegation
1
General delegation means granting authority to the subordinate
to perform various managerial functions and exercise control over
subordinates.
2
Specific delegation means directions are delegated to a particular
person specifically.
3
Writing delegation means delegation by written orders,
instructions etc.
4
Unwritten delegation means the authority is delegated on the
basis of custom, conversion or usage.
5
Formal delegation means the duties and authorities are shown in
the organizational structure of the enterprise.
6
Informal delegation means a person has to use the authority
without getting it from the top management.
7
Downward delegation means when a superior could delegate
duties and authority to his immediate subordinate.
8
Accrued delegation means a subordinate can delegate his
authority to his immediate superiors.
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Sideward delegation means a person delegate authority to
another person who is also in the same rank.
Advantages of Delegation
¾ Basis of effective functioning
¾ Saving of time
¾ Reduction of work
¾ Opportunity for development
¾ Benefit of specialized service
¾ Delegation of authority enables effective managerial supervision
¾ Efficient running by branches
¾ Interest and initiative
¾ Satisfaction to subordinate
¾ Expansion and diversification of business activity
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Chapter – 8 DELEGATION OF AUTHORITY AND DECENTRAILISATION
Problems of Delegation
1.
Hesitation on the part of Superior
2.
Hesitation on the part of Subordinates
Hesitation on the part of Superior
Reasons for not accepting the authority by the subordinates are as below:
1.
Perfectionism
2.
Autocratic attitude
3.
Directions
4.
Confidence
5.
Control
6.
Avoidance of risk
7.
competition
8.
Inability of the subordinate
9.
Inability of the superior
Hesitation on the part of Subordinates
Reasons for not accepting the authority by the subordinates are as below:
1.
Love of spoon feeding
2.
Easier to ask
3.
Fear of criticism
4.
Lack of Information or resources
5.
Lack of self confidence
6.
Other work
7.
Inadequate incentives
8.
Fear of failure
Effective Delegation
Effective delegation helps efficient accomplishment of the organizational
objectives.
Steps
1.
2.
3.
4.
5.
6.
7.
8.
involved in successful Delegation
Establishment of definite goals
Developing personal discipline for supervision
Establishment of definite responsibility
Motivation
Determining what to delegate
Training
Report
Control
Prerequisite for Effective Delegation of Authority
¾ Superior must understand the authority and responsibility of their own.
¾ Superior must decide the portion of his authority that is to be delegated.
¾ Superior should have knowledge of abilities and inabilities of subordinates
¾ He must ensure the subordinates have understood the delegated work.
¾ He should delegate only the routine functions to subordinate
¾ He must understand the need, importance and value of delegation
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Chapter – 8 DELEGATION OF AUTHORITY AND DECENTRAILISATION
¾
¾
¾
¾
¾
¾
¾
He should delegate the work which can be performed independently
He must dissuade the subordinate from taking decision by themselves
He must release the decision making powers to his subordinate
Adequate communication network
Clear definition of standard of accountability
Delegation must be done in accordance with overall plan.
Delegation of authority should be confined to organizational structure.
Common faults in Delegation
1.
Close supervision
2.
Lack of direction
3.
Lack of accountability
Decentralization
Decentralization means each section has its own workers to perform
activities with the department.
Advantages of Decentralization
1.
Savings of time
2.
Greater efficiency and output
3.
Maintenance of secrecy
4.
Departmental loyalty
Disadvantages of Decentralization
1.
No proper division of work
2.
Duplication of work
3.
No standardization
4.
Heavy expenditure
Responsibility
Meaning: It is the obligation to perform the tasks, functions or assignments.
Definition: Responsibility is an obligation to perform certain functions and
achieve certain results.
Elements of responsibility
1.
It arises from superior – subordinate relationship.
2.
It ensures from contractual agreement.
3.
The responsibility cannot be transferred to anybody.
4.
It is created by acceptance of authority
5.
There is an essence of obligation
6.
The responsibility may be general or specific
7.
Responsibility is a continuing process by nature.
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