Q. What do you mean by delegation of authority? How is it different from decentralisation? What is the importance of delegation of authority?
Ans. Meaning of Delegation of Authority: Delegation of authority is an important part of the organising process. Its need felt when due to excessive workload on a manager, he is unable to perform all jobs independently. In this situation, he divides his work among the subordinates. But, just mere a division of work does not guarantee success. For the successful work performance, authority should be given to the subordinates to take work decisions. Thus, dividion of work and assigning authority for the successful work performance is called delegation of authority.
Delegation of authority is the process of entrusting responsibility and authority, and creating accountability of the person to whom work or responsibility has been handed over.
According to F.G. Moore, “Delegation of authority means assigning work to others and giving them authority to do it.”
Difference between Delegation and Decentralisation: Delegation refers to the process of assigning responsibility and authority to subordinates to perform specified tasks. On the other hand, Decentralisation refers to the systematic dispersal of authority throughout the organisation to lower levels of management. The difference between Delegation and Decentralisation is as follows :
| Sr. No. | Basis of Difference | Delegation | Decentralisation |
|---|---|---|---|
| 1. | Transfer of Accountability | Under delegation the ultimate responsibility or accountability lies on the delegator, meaning thereby that there cannot be any transfer of accountability. | Under decentralisation there is a transfer of accountability along with authority. |
| 2. | Control | The delegator continues having his control over his subordinates even after delegation of authority. | Under this the person giving authority losses the power to control his subordinates. |
| 3. | Compulsion | Delegation is essential in all enterprises because the manager has to delegate his authority to his subordinates to get work out of them. It means that without it the work is impossible. | It is not necessary to have it because it is not essential that the superior should divide his authority in a comprehensive way in the entire organisation. It means that in its absence work is possible. |
| 4. | Permanency in Transfer of Authorities | Under delegation the transfer of authority is temporary. It means that authority can be taken back any time. | Under decentralisation authority is permanently given to the subordinates. |
| 5. | Scope | Delegation shows a limited transfer of authority and hence its scope is limited. | It shows a wide distribution of authority and, therefore, its scope is wide. |
| 6. | Relation between Delegator and Delegant | The delegant is the nearest subordinate of the delegator. It is, therefore, a relation between the two persons. | Many departments get authority simulultaneously and the delegator is the general manager. Hence, it is a relation among the top management and various departments. |
| 7. | Deliberate Policy | Delegation is adopted by the managers for works of daily routine. It is not necessary to formulate any policy at the top hierarchy. | Delegation is essential for decentralisation. It means it depends on delegation. |
| 8. | Dependence | Decentralisation is not essential for delegation. | Decision-making authority is distributed among various levels of management. |
| 9. | Creation of Profit and Centres | A subordinate does not become a separate profit centre because of delegation. It means there is no creation of profit centres under it. | Decentralisation creates many separate units which can be called separate profit centres. Hence, all the units can have separate profit-loss amounts. |
Importance of Delegation of Authority: Delegation of Authority is an important instrument for effective management. If the workload of a person is more than his capacity, he tries to sustain his capacity through delegation of authority. Thus, it is clear that power of an officer is extended to delegation of authority. The importance of delegation of authority is clarified through the following facts:
(1) Effective Management: Effectiveness means successful accomplishment of an objective. Delegation of authority reduces the workload of a manager. Manyers who practice delegation of authority are definitely better decision makers than those managers who do not delegate authority. The former ones get the benefit of the skills of their subordinates. This situation eases the attainment of objectives. As a result, the effectiveness of managers is improved.
(2) Employee Development: The mental growth of a person take place only when he has authority to take decisions. The process of delegation of authority provides managers the authority to take decisions. With the given authority, managers take decision contingent to the situation. Not only this but they even guide and motivate their subordinates. This type of practice adds on to their knowledge and experience. As a result, in future they become more able to take extra responsibility.
(3) Motivation of Employees: In the process of delegation of authority, both of authority and responsibility are deleged to the subordinates. This situition provides liberty to work and take decisions on part of subordinates. Gaining through this, they exhibit their talent and skill. With better performance, the subordinates create a niche of themselves in the organisation. Consequently, they get job satisfaction and feel motivated to perform even better.
(4) Facilitation of Growth: Delegation of authority does not only develop only one person or division but facilitate the development of organisation as a whole. As a result, profits are increased and managers as well as subordinates feel motivated. With this situation in an organisation efficiency, motivation and satisfaction are at their maximum peak. As adequate number of able employees are available in an organisation to take decisions; expansion, modernisation and diversification of a business can be done with full confidence.
(5) Basis of Management Hierarchy: Management hierarchy is inevitable to run a business organisation successfully. Only because of this hierarchy, the superior and subordinates they come in contact with each other and get an opportunity to understand one another. The hierarchy is established through the process of delegation of authority. Under this, authority flows from top level to bottom level. As a result, senior and subordinate links are established from top to bottom.
(6) Better Coordination: Delegation of authority is a process to establish relation between responsibility, authority and accountability. Through this, employees get clarification with regard to their powers, duties and accountability for work performance. Thus, a clear picture is delineated (defined) for all the jobs performed at various levels, which automatically establishes better coordination. The advantage of this is that neither duplicacy nor overlapping of work take place.
(7) Leads to Quick and Better Decisions: Decisions by delegation are taken not only at the top hierarchy but at all levels of management and it leads to quick decisions. All the subordinates fully know the problems of their field and this knowledge helps them in taking good decisions.
(8) Continuity in Organisation: Because of delegation of authority the subordinates continue getting information about the activities of the superiors. If some superior leaves the concern or is promoting do some higher rank, his subordinate can easily be appointed in his place. Thus, continue in the organization has maintained and the work performance is not impeded (delayed, prevent, hindered).
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