AUTHORITY AND DELEGATION
INTRODUCTION
Authority
 Delegation
 Responsibility
 Centralisation
 Decentralisation
 Distinction between decentralisation and
delegation
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AUTHORITY
In the words of Simon, “Authority may be defined
as the power to make decisions which guide
the actions of others.
CHARACTERISTICS OF AUTHORITY
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Authority is a relationship between two individuals,
one superior and the other subordinate.
There exists a right in authority. The right is given by
a superior to the subordinate.
The authority enjoyed by the subordinate is not
unlimited .
The person is required to use the authority as per
rules, regulations and norms of the organisation.
The authority is given to influence the behaviour of
subordinates so that right thingds are done at right
time.
It also helps in co-ordinating various activities.
Though authority is always objective but its
existence is always subjective.
 Authority can be delegated.
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SOURCES OF AUTHORITY
Legal/Formal Authority
 Traditional Authority
 Acceptance Theory
 Competence Theory
 Charismatic Authority
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RESPONSIBILITY
Responsibility is the obligation to do something. It
is the duty that one has to perform in the
organisation. Authority and responsibility go
side by side. One can delegate delegate
authority but not responsibility.
In the words of GEORGE TERRY “Responsibility is
the obligation to carry out assigned activities to
the best of his abilities”
Superiorsubordinate
relationship
Continual or
restricted
Features of
Responsibility
Cannot be
delegated
Upward sloping
Obligation
Cannot be
delegated
AUTHORITY
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It is the right of the superior
to command the
subordinates.
It normally arises either from
legal provisons & formal
contract.
It can be delegated from a
superior to a subordinate.
It may continue for a long
time.
RESPONSIBILITY
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It is the obligation of a
subordinate to perform an
assigned task.
It arises from superior
subordinate relationship.
It cannot be delegated.
It is over when the assigned
task is completed.
AUTHORITY AND RESPONSIBILITY
DELEGATION
Delegation is an administrative process of getting
things done by others by giving them
responsibility. Every superior delegates the
authority to subordinates for getting a particular
work done.
Acc. To O.S. Hiner, “ Delegation takes place when
one person gives another the right to perform
work on his behalf and in his name, and a
second person accepts a corresponding duty or
obligation to do what is required to him.”
Characteristics Of Delegation
Possesses
Authority
Part of
Authority is
Delegated
Full Control
Granting
Powers
Responsibility
is not
delegated
Grant of
Authority
Assignment
of
Responsibility
Creation of
Accountability
Elements
Of
Delegation
PRINCIPLES OF DELEGATION
Principle of Functional Definition
 Principle of Unity of Command
 Principle of Delegation by Results Expected
 Principle of Absoluteness of Responsibility
 Principle of Parity of Authority and
Responsibility
 Authority Level Principle
 The Scalar Principle
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General or
Specific
Delegation
Formal or
Informal
Delegation
Types of
Delegation
Lateral
Delegation
Reserved
Authority
and
Delegated
Authority
PRE-REQUISITES FOR DELEGATION
Willingness to Delegate
 Climate of Trust and Confidence
 Faith in Subordinates
 Fear of Supervisors
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Relief to Top
Executives
Improved
Functioning
Use of
Specialists
Helps in
Employee
Development
Importance of Delegation
Helps in
Expansion
and
Diversification
Better
Coordination
Motivates
Subordinates
Prompt
DecisionMaking
FACTORS AFFECTING DELEGATION
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Company’s History
Availability of capable persons
Importance and Costliness of Decisions
Size of the Enterprise
Available Controls
Types of Enterprise
Environmental Factors
WAYS TO MAKE DELEGATION EFFECTIVE
 Defining of
 Proper Selection of
Assignments
Persons
 Proper Communication  Establishing Proper
Controls
 Rewards for Proper
 Motivate Subordinate
Implementation
 To Establish Feedback  To Establish Objectives
System
 To Follow Unity of
 To Provide Supportive
command
Supervision
CENTRALISATION
Centralisation refers to reservation of authority at
central points within the organisation.It implies
that a majority of decisions regarding the work
are made not by those doing the work but a
point higher up in the organisation.
In simple words, “If authority to take decisions
retained at top level s, then the organisation is
said to be centralised.”
FACTORS AFFECTING CENTRALISATION OF
AUTHORITY
Achieving Uniformity of Actions
 Facilitating Integration
 Promoting Personal Leadership
 Handling Emergencies
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DECENTRALISATION
Decentralisation implies the dispersal of
decision-making power at lower levels of
management. When the power to take
decisions and formulate policies does not lie
with one person at the top but is passed in to
different persons at various levelss.
Number of
Decisions
Importance
of
Decisions
Measurement of
degree of
Decentralisation
Checking of
Delegation
Effect of
Decisions
WHAT FACTORS BRING ABOUT
DECENTRALISATION
When there is a need to take quick decisions on
the spot to take advantage of the situation then
power is delegated to the level where it is neede.
 When top management wants to reduce
communication work then decentralisation is
undertaken.
 The company’s product or market may require
decentralisation of decision making to give
emphasis to product or market.
 When growth and diversification takes place then
decentralisation is necessary.
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ADVANTAGES OF DECENTRALISATION
Reduces burden of top executives.
 Quick decisions
 Facilitates Diversification
 Motivation of Subordinates
 Sense of Competition
 Provides Product or Market Emphasis
 Division of Risk
 Effective Control and Supervision
 Manager Development
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DISADVANTAGES OF DECENTRALISATION
Lack of Co-ordination
 Difficulty in Control
 Costly
 Lack of Able Managers
 Inconsistencies
 Improper Handling of Emergency Situations
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