Management - Ch11 - Delegation of Authority

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The key takeaways are that delegation involves transferring authority and responsibility to complete tasks, and that it allows managers to achieve more without burning out while motivating and training subordinates.

The elements of delegation are authority, responsibility, and accountability. Authority is the power to act, responsibility is carrying out the task, and accountability is being liable for actions and decisions.

The sources of power for managers are reward power, coercive power, legitimate power, expert power, and referent power.

Management Concepts Chapter 11 – Delegation of Authority

Delegation of Authority

11.01. Introduction to Delegation

 By definition, delegation is the transfer of authority to make decisions and


complete specific tasks. Learning how to delegate is one of the most
important skills for managers and leaders to possess.

 Strong delegation techniques can help managers save time, motivate people,
and train people, as well as these techniques can enable managers to take on
new opportunities.

 However, the lack of delegation practices often leaves people frustrated,


unmotivated, and under-trained, while the manager remains overworked.
Delegation is a skill that enables managers to achieve more without burning
themselves out.

11.02. Elements of Delegation

The authority, responsibility, and accountability for the task changes hands when a
person delegates a task. Before delegating a task, it is a must to understand these.

 Authority – Authority is the power given to a person or group of people to act


and make decisions within designated boundaries. When delegating a task,
the authority is shared between the manager and to the person delegated.

 Responsibility – Responsibility refers to the act of carrying out the task. When
delegating a task, the manager and person receiving the delegation share the
responsibility of completing the work. The manager has the responsibility of
providing instructions on what work needs to be done, while the delegated is
responsible for figuring out how the task should be completed.

 Accountability – Accountability is the act of being liable for a person’s actions


and decisions. During delegation of a task, the accountability of the task
transfers from the manager to the delegated who is actually completing the
work. Any positive or negative consequences associated with their
performance are ultimately their responsibility.

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Management Concepts Chapter 11 – Delegation of Authority

11.03. Power, Authority, and Responsibility

Power is the capacity of a person to act and influence others. It does not come to a
person because of his official position A person gets power by virtue of his
intelligence, knowledge, skill and other personal traits. It is neither completely formal
nor informal. One can have power even without authority. Therefore, an operational
level employee may even possess power. The main sources of power have been
identified as follows:

i) Reward power: It is the ability of the manager to reward the subordinate for
obeying orders.

ii) Coercive power: It is the ability of the manager to punish the subordinate for not
obeying orders.

iii) Legitimate power: It corresponds to the term Authority. It exists when a


subordinate acknowledges that the manager is lawfully entitled to exercise authority.

iv) Expert power: It is the belief that the manager has some special knowledge.
v) Referent power: It is the manager’s desire to identify with or imitate the
subordinates.

Authority: The term authority is commonly understood as the right of full power or
the right to command. It is the linking between a superior and the subordinates. It is
only the authority which creates Superior- Subordinates relationship. In a small
business enterprise, the authority may be centralised in a few hands. As the business
grows there is a need to delegate authority to more and more people to cope with
the expansion of works.

Authority always flows from the top to the bottom. It should be stated clearly so that
every individual in the organisation is aware of the scope and the limits of the
authority. Authority is the formal right vested in a managerial position, to decide,
direct and to influence the behaviour of subordinates with a view to achieving
organisational goals.

According to Henri Fayol, authority is “the right to give orders and power to exact
obedience”

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Management Concepts Chapter 11 – Delegation of Authority

Responsibility: Responsibility arises from superior-subordinate relationship in an


organisation. One of the aspects of delegating authority is the creation of an
obligation on the part-of the subordinate for the satisfactory performance of the
assigned duties. The acceptance of this obligation by the subordinate manager
creates responsibility.

In the normal functioning of an enterprise, much of the responsibility is in the nature


of continuing obligation which means that the subordinate has an obligation to
discharge his functions as required by his superior continuously. In special
assignment, like the engagement of a consultant on a particular issue by the
management, his obligation will cease when the assignment is completed.

Thus, responsibility is the obligation to perform assigned activities. It is the self-


assumed commitment to handle a job to the best of one’s ability. The source of
responsibility lies within the individual.

11.04. Features of Delegation of Authority

1. Total authority cannot be delegated: A manager cannot delegate his/her total


authority to the subordinates. He/she can delegate only a portion of it. A
supervisor's status would be affected if he/she delegates total authority to the
subordinates. It is not possible and is also not allowed by the management
concept. A manager cannot delegate the authority to a subordinate which he
himself does not possess. It means that no one can give what he has not got.
This feature is based on legality.

2. Representation of the Superior: Delegation of authority to subordinates


represents the superior in the subject matter which is delegated to him. In
such a case, a subordinate is supposed to behave and act in the same manner
in which the superior would have behaved and acted.

3. Delegation for Organizational Purpose: A superior delegates his authority to


subordinates only for organizational purposes. He cannot delegate the
authority to fulfil his personal objectives.

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Management Concepts Chapter 11 – Delegation of Authority

4. Restoration of Delegated Authority: Authority once delegated may be


enhanced or reduced on the basis of nature of duties and its effectiveness. It
may be completely withdrawn in case of ineffectiveness and termination of
subordinates from the organization. Therefore, a manager does not
permanently delegate his authority.

5. Balance of Authority and Responsibility: A manager has to delegate authority


to the subordinates on the basis of weight of responsibility to him. The
assignment of responsibility to a subordinate without proper authority
becomes worthless because that subordinate cannot perform the functions
independently and efficiently.

6. Final Responsibility Lies With Manager: A manager can delegate authority to


his subordinates in accordance with assigned responsibility, but the final
responsibility, however, lies on him. He cannot escape from his
responsibilities.

11.05. Principles of Delegation of Authority

1. Principle of Functional Definition: Before delegating authority, the functions


or duties of the subordinates should be defined in clear and precise terms.
Every subordinate must fully understand the nature and significance of his
job, its relationship with other jobs and the limits of his authority.

2. Principle of Delegation by Result Expected: Duties are assigned in terms of


expected results. For this personnel’s must know what activities they are to
undertake and what results they are to show. The manager should first define
the objectives and should delegate authority. Every subordinate should know
and understand the standards by which his performance will be judged.

3. Principle of Unity of Command: Every subordinate should be under the


command of one superior. A person cannot serve two or more masters
effectively. When an employee is asked to get orders and instructions from
more than one manager, he gets confused and his loyalty gets divided
between different bosses. Therefore, dual subordination should be avoided.

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Management Concepts Chapter 11 – Delegation of Authority

4. Principle of Parity of Authority and Responsibility: According to this principle


authority and responsibility should go hand in hand. If a subordinate is to be
held responsible for a job, adequate authority to perform it should be given to
him. There should be no disparity between the authority granted to a
subordinate and the responsibility imposed on him.

5. Exception Principle: A manager should delegate by exception. This means that


he should assign to his subordinates those tasks which they are capable of
performing and keep for himself the work, which he can do better because of
his superior knowledge or abilities. Moreover, a superior should concentrate
only on exceptional or strategic deviations in the work of subordinates. He
should not bother about the insignificant deviations.

6. Scalar Principle: The chain of command or line of authority from the top to
the bottom of the organisational hierarchy should be such that every
subordinate knows who has delegated authority to him and to whom matters
beyond his authority must be referred to. The limits of authority within which
subordinates can exercise initiative should be clarified.

11.06. Process of Delegation of Authority

Assignment

Transfer

Acceptance

Accountability

1. Assignment of Duties to Subordinates: Before the actual delegation of authority,


the delegator must decide on the duties which he wants the subordinate or the
group of subordinates to perform. Here, the manager lists the activities to be
performed along with the targets to be achieved, and the same is spelled out to the
subordinates. Thus, in the first stage, the duties are assigned to the subordinates as
per their job roles.

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Management Concepts Chapter 11 – Delegation of Authority

2. Transfer of Authority to perform the duty: At this stage, an adequate authority is


delegated to the subordinate which is essential to perform the duty assigned to him.
A manager must make sure; that authority is strictly delegated just to perform the
responsibility, as more authority may lead to its misuse by the subordinate.

3. Acceptance of the Assignment: At this stage, the subordinate either accepts or


rejects the tasks assigned to him by his superior. If the subordinate or the delegate
refuses to accept the duty and the authority to perform it, then the manager looks
for the other person who is capable of and is willing to undertake the assignment.
Once the assignment gets accepted by the subordinate, the delegation process
reaches its last stage.

4. Accountability: The process of delegation of authority ends at the creation of an


obligation on the part of the subordinate to perform his responsibility within the
powers assigned to him. Once the assignment is accepted by the subordinate, then
he becomes responsible for the completion of the duty and is accountable to the
superior for his performance.

Thus, the process of delegation of authority begins with the duties assigned to the
subordinates and ends when the subordinate is obliged to carry out the operations
as intended.

11.07. Advantages of Delegation of Authority

1. Relief to Managers: A manager divides the entire work of his department


among his subordinates. While assigning work to subordinates, the manager
also provides adequate authority to the subordinates. Thus, the manager can
concentrate himself on more innovative and important works as he becomes
free from routine work.
2. Promote Decisions: Delegation of authority enables subordinates to take
decisions within the scope of their authority. For example, a foreman has the
authority to make certain decisions within his level of authority.

3. Improvement of Job satisfaction: Division of work with responsibility and


adequate authority to subordinates provides them the feeling that they are
being recognised. The delegation of authority motivates them to put their
best efforts in order to show good results.

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Management Concepts Chapter 11 – Delegation of Authority

4. Scope for expansion of business: If the subordinates are well motivated and
perform their tasks and also acquire the required expertise in decision making
and discharging their duties, the management can successfully undertake
expansion or diversification activities.

11.08. Barriers to Delegation of Authority

1. Desire for domination of superiors: A good number of superiors feel that


delegation of authority to subordinates would result in loss of control.

2. Lack of confidence in subordinates: A good number of managers do not have


confidence on his subordinates and so they hesitate to delegate authority.

3. Fear of criticism among the subordinates: A good number of subordinates do


not care to accept authority for the fear of being criticised should he/she fail
to perform well.

4. Lack of Incentives: Economic and non-economic incentives must be provided


to encourage those subordinates who prove their ability, as lack of incentives
keeps the subordinates away from accepting authority.

5. An environment of mutual distrust: The enterprise must ensure mutual trust


and confidence between the superiors and the subordinates. Lack of mutual
trust environment would not allow any scope for delegation of authority as
superiors do not like to delegate and subordinates do not like to accept
authority.

6. Fear of being proved as less efficient: The superiors always carry a fear of
being proved as less efficient in case they entrust their works upon
subordinates.

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