Delegation of authority:
Delegation means devolution of authority on subordinates to
make them perform the assigned duties or tasks.
Elements of delegation:
1.
Entrustment of responsibility or duty
a.
Responsibility means the work or duties assigned
to a person by virtue of his position in the organisation.
2.
Granting of authority
a.
Authority is the right or power granted to an
individual to make possible the performance of work assigned.
3.
Creation of Obligation or Accountability
a.
Accountability is the obligation to carry out responsibility
and exercise authority in terms of performance standards established.
b.
Authority can be delegated but accountability cannot
be delegated.
c.
Accountability moves upwards
d.
The extent of accountability depends upon the extent
of delegation of authority and responsibility.
Categories of authority which can
be delegated:
1.
Authority which must be delegated such as
authority to take routine decisions for the accomplishments of tasks
2.
Authority which can be delegated such as implementation
of policies and
Authority which cannot be
delegated at all is authority to take policy decisions.
Types of delegation:
1.
Specific
2.
General
3.
Written
4.
Unwritten
5.
Precise
6.
Vague
Significance
1.
Key to organisation
2.
Better results from subordinates
3.
Lighten burdens of executive
4.
Maintains healthy relationship between the
executive and his subordinates
Advantages:
1.
Sharing of workload
2.
Quick decision-making
3.
Motivation
4.
Training
5.
Better performance
6.
Better relations
Difficulties:
1.
On the part of superior;
a.
Lack of receptiveness
b.
Lack of ability to direct
c.
Unwilling to let go.
d.
Lack of trust in subordinates
e.
Ineffective controls.
2.
On the part of subordinate:
a.
Lack of self confidence
b.
Desire to play safe by depending on the boss for
all decisions.
c.
Fear of committing mistakes and being criticised
by the boss.
d.
Lack of incentives
e.
Overburden with duties
f.
Inadequacy of authority, information and working
facilities for performing the duties.
3.
On the part of organisation:
a.
Defective organisation structure an non-clarity
of authority responsibility and relationships
b.
Inadequate planning
c.
Splintered authority
d.
Infringement of the principle of unity of
command
e.
Lack of effective control mechanism.
Guidelines for effective delegation:
1. Well defined goals
2. Selection and training
3. Motivation
4. Communication
5. Adequate control
Principles of delegation:
1. Assignment of duties in terms of result expected.
2. Clarification of limits of authority
3. Parity of authority and responsibility
4. Absoluteness of accountability
5. Authority level principle
6. Unity of command
7. Scalar chain
8. Effective communication
Decentralisation:
Decentralisation means dispersed of decision-making power to the lower levels of the organisation.
Factors considered:
1. When need is realised to take quick and appropriate decision-making on the spot
2. When the top management wants to reduce communication work
3. Special emphasis on product line or a market
4. Flexibly in operation
5. Physical dispersion of activities.
Degree of decentralisation:
Degree of decentralisation can be based on:
a. Kind of authority
b. How far it is delegated
c. How consistently delegated.
Degree of decentralisation is greater when:
1. Number of decision made lower down the management hierarchy is greater.
2. The more important decisions is made lower down the hierarchy
3. More functions are affected by decisions made at lower levels.
4. Less checking on the decisions taken at the lower levels.
Difference between delegation and decentralisation:
The following are the major differences between delegation and decentralization:
1. When an authority or responsibility is entrusted to the subordinate by a superior is known as Delegation. Decentralization refers to the final result which is attained when the authority is delegated to the lowest level, in an organised and consistent manner.
2. Delegation is the technique of management. On the contrary, decentralisation is the philosophy of management.
3. In delegation, only authority and responsibility are transferred but not the accountability. However, in decentralization, all the three are transferred.
4. In delegation, there is less liberty of work to the subordinates whereas, in the decentralization, a substantial amount of liberty can be seen.
5. Delegation of authority creates superior-subordinate relationship in the organization. Conversely, decentralisation is a step towards creation of semi-autonomous units.
6. A delegation of authority is a must for every organisation, as no person can alone do each and every task. Conversely, Decentralization is discretionary, in the sense that top management may or may not disperse authority
1. Well defined goals
2. Selection and training
3. Motivation
4. Communication
5. Adequate control
Principles of delegation:
1. Assignment of duties in terms of result expected.
2. Clarification of limits of authority
3. Parity of authority and responsibility
4. Absoluteness of accountability
5. Authority level principle
6. Unity of command
7. Scalar chain
8. Effective communication
Decentralisation:
Decentralisation means dispersed of decision-making power to the lower levels of the organisation.
Factors considered:
1. When need is realised to take quick and appropriate decision-making on the spot
2. When the top management wants to reduce communication work
3. Special emphasis on product line or a market
4. Flexibly in operation
5. Physical dispersion of activities.
Degree of decentralisation:
Degree of decentralisation can be based on:
a. Kind of authority
b. How far it is delegated
c. How consistently delegated.
Degree of decentralisation is greater when:
1. Number of decision made lower down the management hierarchy is greater.
2. The more important decisions is made lower down the hierarchy
3. More functions are affected by decisions made at lower levels.
4. Less checking on the decisions taken at the lower levels.
Difference between delegation and decentralisation:
The following are the major differences between delegation and decentralization:
1. When an authority or responsibility is entrusted to the subordinate by a superior is known as Delegation. Decentralization refers to the final result which is attained when the authority is delegated to the lowest level, in an organised and consistent manner.
2. Delegation is the technique of management. On the contrary, decentralisation is the philosophy of management.
3. In delegation, only authority and responsibility are transferred but not the accountability. However, in decentralization, all the three are transferred.
4. In delegation, there is less liberty of work to the subordinates whereas, in the decentralization, a substantial amount of liberty can be seen.
5. Delegation of authority creates superior-subordinate relationship in the organization. Conversely, decentralisation is a step towards creation of semi-autonomous units.
6. A delegation of authority is a must for every organisation, as no person can alone do each and every task. Conversely, Decentralization is discretionary, in the sense that top management may or may not disperse authority
BASIS FOR COMPARISON |
DELEGATION
|
DECENTRALIZATION
|
|
Meaning
|
Delegation means handing over an authority from
one person of high level to the person of low level.
|
Decentralization is the final outcome achieved,
when the delegation of authority is performed systematically and repeatedly
to the lowest level.
|
|
What it is?
|
Technique of management
|
Philosophy of management.
|
|
Accountability
|
Superiors are accountable for the acts done by
subordinates.
|
Department heads are accountable for the acts of
the concerned department.
|
|
Requirement
|
Yes, for all organization delegation of authority
is very necessary.
|
No, it is an optional philosophy which may or may
not be adopted by the organization.
|
|
Liberty of Work
|
Subordinates do not have full liberty.
|
A substantial amount of freedom is there.
|
|
Control
|
The ultimate control is the hands of superior.
|
The overall control vests with top management and
delegate’s authority for day to day control to departmental heads.
|
|
Relationship
|
Creates superior-subordinate relationship.
|
A step towards creation of semi-autonomous units.
|
|
Advantages:
1. Reduction in the burdens of chief executive
2. Quick decisions
3. Diversification of activities
4. Development of managerial personnel
5. Effective control and supervision
6. Effective coordination
7. Improvement of motivation and morale
8. Miscellaneous economies
1. Reduction in the burdens of chief executive
2. Quick decisions
3. Diversification of activities
4. Development of managerial personnel
5. Effective control and supervision
6. Effective coordination
7. Improvement of motivation and morale
8. Miscellaneous economies
1. Increased administration expenses
2. Requires product lines of concern to be broad.
3. Decentralization of authority may create problems
4. May bring about inconsistencies
4. May bring about inconsistencies
1.
Appropriate degree of decentralization
2.
Development of managers3. Communication
4. Coordination
5. Adequate controls.
