Delegation, Contemporary Management Video Lecture | Contemporary Management - B Com

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delegation or decentralization
delegation in an organization managers
no matter how capable they are cannot
perform all the tasks assigned to them
on their own they thus assign some of
the work to their subordinates and give
them authority to carry on the work and
at the same time make them accountable
this process is termed as delegation let
us understand the concept with the help
of an example suppose a production
manager has the target to produce a
thousand units in a week's time
he can distribute his work to three of
his subordinates to produce 250 units
each and key 250 units for self to
produce
he also needs to give them enough
authority to use organizational
resources to produce in order to make
his subordinates answerable to him for
non-performance hence delegation can be
defined as the downward transfer of
authority from a superior to a
subordinate in order to achieve
effective results however delegation
does not mean abdication the manager
shall still be accountable for the
performance of the assigned tasks
elements of delegation according to
Louis Allen delegation is the
entrustment of responsibility and
authority to another and the creation of
accountability for performance thus
there are three elements of delegation
Authority responsibility and
accountability let us learn about these
elements in detail
one authority authority refers to the
bar and right of an individual to use
and allocates the resources efficiently
to take decisions and to give orders so
as to achieve the objectives of an
organization Authority also refers to
the right to take decisions inherent in
a managerial position to tell people
what to do and expect them to do it
authority flows from top to bottom that
is a superior has authority over his
subordinate to responsibilities
responsibility is the obligation of a
subordinate to complete the tasks
assigned to him properly responsibility
flows from bottom to top that is a
subordinate will always be responsible
to his superior responsibilities without
adequate Authority leads to discontent
and dissatisfaction among employees on
the other hand Authority without
responsibility may lead to misuse of
authority 3 accountability
accountability implies being answerable
for the final outcome once Authority has
been delegated and responsibility
accepted one cannot deny accountability
delegation of authority impose an
employee to act for his superior but the
superior would still be accountable for
the outcome for example if a is given a
task with sufficient authority and a
delegates this task to B and C and asks
them to ensure that task is done when
responsibilities rest with B and C but
accountability still rest with a
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importance of delegation delegation
ensures that subordinates perform tasks
on behalf of a manager thereby reducing
his workload and providing him with more
time to concentrate on important matters
effective delegation leads to several
benefits let us have a quick look on the
same
one effective management delegation
relief's managers from heavy workload
and enables him to function more
efficiently as I get more time to
concentrate on important matters to
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employee development delegation of
authority on the one hand allows
managers to develop those skills which
will enable them to perform complex
tasks and assume those responsibilities
which will improve their career
prospects on the other hand delegation
provides employees chance to use their
skills gain experience and develop
themselves for higher positions three
motivation of employees delegation also
has psychological benefits when a
superior interests are subordinate with
a task employees feel that their
superiors trust them and recognize them
in lieu of this employees give their
best to the organization for the purpose
of maintaining the confidence of their
superiors on them for
facilitation of growth delegation works
as a training technique for employees
because when they're assigned with
authority they have to take different
decisions in different situations
this strains employees and prepares them
for leading positions in new ventures
five bases of management hierarchy
delegation of authority creates superior
subordinate relationships which tie
various positions in an organization
together and also serve as the basis of
hierarchy of management the extent of
delegated authority also decides the par
that each job position enjoys in an
organization
six better coordination delegation helps
to avoid overlapping of duties and
duplication of efforts as it gives a
clearer picture of the work being done
at various levels such clarity in
reporting relationships facilitates
development and maintenance of effective
coordination amongst the department's
levels and functions of Management
decentralization in many organizations
the top management plays an active role
in taking all decisions while there are
others in which this power is given to
even the lower levels of Management
those organizations in which
decision-making authority lies with the
top management are termed as centralized
organizations whereas those in which
authority is shared with lower levels
are decentralized organizations
decentralization refers to the
delegation of authority throughout all
the levels of an organization for
example traffic police controls movement
of vehicles on road he holds a
lower-level position in the organization
yet he has a lot of authority given to
him
senior officers concentrate on ways and
means to improve traffic control
centralization and decentralization
centralization and decentralization are
relative terms as seen from the existing
status of various business enterprises
an organization can never be completely
centralized or decentralized as in large
organizations employees who are directly
and closely involved with certain
operations tend to have more knowledge
about the operations than the top
management hence there must be a good
balance between these coexisting forces
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importance of decentralization it is not
so important to consider whether
decentralization should be adopted or
not but what is important is that to
what extent or degree it should be
adopted what authority should be given
to subordinates and what authority
should remain reserved with superiors
decentralization is a fundamental step
and its importance can be understood
from the following points
one initiative among subordinates
decentralization leads to delegation of
authorities in large amount a person
with right Authority is compelled to
contemplate or to do something new this
inculcates and him the ability to take
initiative
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to managerial talent for the future
decentralization provides the
opportunity to take decisions adds to
the knowledge and experience of managers
at all levels and develops talent to
bear extra responsibility in future
three quick decision-making in a
decentralized organization the burden of
managerial decisions does not lie on a
few individuals but it is distributed
among many people with complete
knowledge about their units or
departments this leads to quick as well
as better decision-making for relief to
top management under decentralization
the daily managerial work is assigned to
subordinates it leaves the top
management with more time which they can
devote to formulate policies and plans
as well as to perform the functions of
coordinating controlling and so on 5
facilitates growth decentralization
provides full liberty to the lower
levels of management as well as
divisional or departmental heads this
allows them to make efforts in order to
achieve better results this fosters a
sense of competition amongst different
departments of an organization and leads
to an increase in the productivity
levels of an organization
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six better control decentralization
makes it possible to evaluate
performance at each level and
departments can be individually held
accountable for their performances
management adopts better control systems
such as balanced scorecard and
management information system to
conclude delegation is the transfer of
authority from superior to subordinate
delegation has three elements authority
responsibility and accountability
while authority is delegated
responsibility is assumed accountability
is imposed responsibility is to write
from authority and accountability is
derived from responsibility delegation
helps in effective management employee
development motivation growth and
coordination decentralization is
delegation of authority throughout the
organization decentralization helps in
development of managerial talent quick
decision-making reducing burden on top
management development of initiative
growth and better control
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