Delegation of Authority
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Authority is the power to make decisions which guide the actions of others. Delegation of authority results in the creation of an organization. ...

Authority is the power to make decisions which guide the actions of others. Delegation of authority results in the creation of an organization.

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  • 1. Welingkar’s Distance Learning Division CHAPTER-08 DELEGATION OF AUTHORITY & DECENTRALISATION We Learn – A Continuous Learning Forum
  • 2. Welingkar’s Distance Learning Division Introduction • Authority is the power to make decisions which guide the actions of others. Delegation of authority contributes to the creation of an organization. • It is “Right of decision and command” We Learn – A Continuous Learning Forum
  • 3. Welingkar’s Distance Learning Division OPPORTUNITY There is an island of opportunity in the middle of every difficulty. We Learn – A Continuous Learning Forum
  • 4. Welingkar’s Distance Learning Division Characteristics of Authority • Basis of getting things done • Legitimacy • Decision-making • Implementation We Learn – A Continuous Learning Forum
  • 5. Welingkar’s Distance Learning Division Sources of Authority There are three theories regarding the sources of authority. • The formal authority theory • The acceptance of authority theory • The competence theory We Learn – A Continuous Learning Forum
  • 6. Welingkar’s Distance Learning Division The formal authority theory • Authority flows from top to bottom through the structure of an organization. Board of Directors General Manager Sales Manager Sales Representative Workers We Learn – A Continuous Learning Forum
  • 7. Welingkar’s Distance Learning Division The acceptance of authority theory • Authority flows from the superior to the subordinates whenever there is an acceptance on the part of the subordinates. • Zone of acceptance depends upon various factors like rewards, subordinate behavior pattern, dismissal or non acceptance results, special knowledge, confidence etc. We Learn – A Continuous Learning Forum
  • 8. Welingkar’s Distance Learning Division The competence theory • This type of authority is invested with the persons by virtue of the office held by them. We Learn – A Continuous Learning Forum
  • 9. Welingkar’s Distance Learning Division Delegation Meaning: Delegation is a process which enables a person to assign a work to others and delegate them with adequate authority to do it. Importance of Delegation: It is the most important methods of training subordinates and building morals. This helps to concentrate on planning, organizing and controlling. We Learn – A Continuous Learning Forum
  • 10. Welingkar’s Distance Learning Division Elements of Delegation • Assignment of duties or responsibilities • Delegation of authority • Accountability Principles of Delegation • Delegation to go by results expected • Delegation of authority but Non-delegation of responsibility • Authority and responsibility should commensurate with each other • Unity of command • Definition of limitations of authority We Learn – A Continuous Learning Forum
  • 11. Welingkar’s Distance Learning Division Types of Delegation • General delegation • Specific delegation • Writing delegation • Unwritten delegation • Formal delegation • Informal delegation • Downward delegation • Accrued delegation • Sideward delegation We Learn – A Continuous Learning Forum
  • 12. Welingkar’s Distance Learning Division Advantages of Delegation We Learn – A Continuous Learning Forum Saving of time Expansion and Diversification Opportunity for development Benefit of specialized service Delegation of authority Basis of effective functioning Advantages of Delegation Revolution of work Satisfaction to subordinate Interest and Iniative Efiicient running
  • 13. Welingkar’s Distance Learning Division Problems of Delegation Hesitation on the part of Superior • Reasons - Perfectionism - Autocratic attitude - Directions - Confidence - Control - Avoidance of risk - competition - Inability of the subordinate - Inability of the superior We Learn – A Continuous Learning Forum
  • 14. Welingkar’s Distance Learning Division Problems of Delegation Hesitation on the part of Subordinates Reasons • Love of spoon feeding • Easier to ask • Fear of criticism • Lack of Information or resources • Lack of self confidence • Other work • Inadequate incentives • Fear of failure We Learn – A Continuous Learning Forum
  • 15. Welingkar’s Distance Learning Division Steps involved in successful Delegation Establishment of Control definite goals Report Developing personal Discipline for supervision Training Establishment of definite Responsibility Motivation Determining what to delegate We Learn – A Continuous Learning Forum
  • 16. Welingkar’s Distance Learning Division Prerequisite for Effective Delegation of Authority • Superior must understand the authority and responsibility of their own. • Superior must decide the portion of his authority that is to be delegated. • Superior should have knowledge of abilities and inabilities of subordinates • He must ensure the subordinates have understood the delegated work. • He should delegate only the routine functions to subordinate • He must understand the need, importance and value of delegation We Learn – A Continuous Learning Forum
  • 17. Welingkar’s Distance Learning Division Prerequisite for Effective Delegation of Authority • He should delegate the work which can be performed independently • He must dissuade the subordinate from taking decision by themselves • He must release the decision making powers to his subordinate • Adequate communication network • Clear definition of standard of accountability • Delegation must be done in accordance with overall plan. • Delegation of authority should be confined to organizational structure We Learn – A Continuous Learning Forum
  • 18. Welingkar’s Distance Learning Division Common faults in Delegation - Close supervision - Lack of direction - Lack of accountability We Learn – A Continuous Learning Forum
  • 19. Welingkar’s Distance Learning Division Decentralization - Decentralization means each section has its own workers to perform activities with the department. We Learn – A Continuous Learning Forum
  • 20. Welingkar’s Distance Learning Division Advantages of Decentralization Saving of time Greater efficiency and output Maintenance of Departmental secrecy loyalty We Learn – A Continuous Learning Forum
  • 21. Welingkar’s Distance Learning Division Disadvantages of Decentralization No proper division Heavy of work expenditure Duplicate of No Standardization work We Learn – A Continuous Learning Forum
  • 22. Welingkar’s Distance Learning Division Responsibility • Meaning: It is the obligation to perform the tasks, functions or assignments. • Definition: Responsibility is an obligation to perform certain functions and achieve certain results. We Learn – A Continuous Learning Forum
  • 23. Welingkar’s Distance Learning Division Elements of responsibility • It arises from superior–subordinate relationship. • It ensures from contractual agreement. • The responsibility cannot be transferred to anybody. • It is created by acceptance of authority We Learn – A Continuous Learning Forum
  • 24. Welingkar’s Distance Learning Division Elements of responsibility • There is an essence of obligation • The responsibility may be general or specific • Responsibility is a continuing process by nature. We Learn – A Continuous Learning Forum