Delegation of authority, responsibility and Decntralization
Authority, Responsibility and It’s Delegation Tola Kanta Neupane MBA
Content of presentation What is authority ? Types, sources of authority and Power Responsibility and Accountability Relationship between Authority and Responsibility Delegation of Authority Decentralization of Authority
AuthorityAuthority is the right to act and thepower to make Decision.Authority resides in positions ratherthan in people.Authority is seen as the legitimateright of a person to exerciseinfluence or the legitimate right tomake decisions, to carry out actions,and to direct others.
Characteristics of authority: It is legitimate right to command and control subordinates. Authority is granted to achieve the predetermined goal of the enterprise. Authority is right to direct others to get things done. Authority is a commanding force binding different individuals. Authority is delegated downward.
Authority is delegated downward: Authority Top level Middle level Low levelworkers
PowerPower is defined as “the ability ofindividuals or groups to induce orinfluence the beliefs or actions ofother persons or groups” - Weihrich , Cannice & Koontz.
PowerPower is a much broader concept than authority.Bases of power: - Legitimate power: arises from position. - power of expertness: arises from knowledge. - referent power: arises from belief in ideas. -coercive power: power to punish. - reward power: power to reward.
ResponsibilityDefinition:“Responsibility may be defined as the obligationof a subordinate to whom a duty has beenassigned to perform.” - Koontz O’ Donnel “The obligation of an Individual to carry outassigned activities to the best of his or herability.” -Terry and Franklin
Characteristics of responsibility: Responsibility is to assign duty to human beings only. Responsibility always flows upward from juniors to seniors. Responsibility is result of duty assigned. Responsibility is the obligation to complete the job as per instruction. Responsibility can never be delegated. It is personal obligation ,and absolute also. The manager remains responsible to his superiors for his job even after its delegation.
EmpowermentEmpowerment means that employees, managers, or teams at all levels in the organization are given the power to make decisions without asking their superiors for permission.
Relationships between authority and responsibility: 1. Parity in authority and responsibility: After giving the responsibility, requisite authority regarding work delegated should be granted. responsibility authority
Imbalance in authority and responsibility responsibility Case 1 authorityIf authority is greater thanresponsibility ,then this could resultin autocratic behavior.
Imbalance in authority andresponsibility Case 2……. authority responsibilityIf responsibility is greater than authority,then this could result in frustration.
2. Authority always flows downwards, while responsibility always flows upwards.Authority Top level Middle level Low level workers responsibility
Delegation of AuthorityDelegation is the transfer of authorityto subordinates to enable them to makedecisions and use resources.Entrusting responsibility and authorityto others who then become responsibleto us for their results but we remainaccountable to our boss what oursubordinates do.
And also delegating is... Not merely the downwards transmission of authorityResponsibility Vs. Accountability
Delegating is …. BOSSACCOUNTABLE YOU Entrust Responsibility Delegate RESPONSIBLE & Authority STAFF
Characteristics of Delegation of AuthorityIt enables a manager to function independently within thebroad limits of authority specified by the superior.The superior does not delegate total authority, but retains apart of that for himself or herself.A manager cannot delegate what he or she does not posses.Delegation does not mean giving away authority . It is, ofcourse, a revocable act. The manager delegating theauthority retains the right to recall.The superior, who delegates the authority, Cannot escaperesponsibility for the activities of subordinates whomauthority has been delegated.
Whether you are a manager in a big firm or asmall company, you need to know how tohandle people if you want things to runsmoothly. The more we know about people thebetter we will be able to get along
To decide who can do the task... We have to …. consider capabilities of our people know what our people need be able to match task to people
Considering Capabilities The Aces•Experienced people•need left alone unless help is requested
Considering Capabilities The Kings & Queens •Fairly experienced people •need support time to time
Considering Capabilities The Jacks•People who need to learnhow to do•need direction•lack of experience = lackof ability
Considering Capabilities Th Jokers •Outsiders who can be called upon when the need arise
Knowing what people needKnow the Facts Feel Support area of you will be fully responsibilities, supportive ramifications and you care about its boundaries task and want the amount of them to be authority successful the standards you have which you require confidence in time-scale their ability involved
Matching Task To People MUST JACK SHOULD KINGS & QUEEN CAN ACEnot enough time JOKERneed special expertise
We delegate because delegating...equips staffTo solve their own problemgives you more time for adding valuemakes you dispensablehelps you motivate your staff andassess their potential
It is so hard to delegate whenthe delegator ... does not clearly understand where his own authority and responsibility begins and ends thinks he can do the work better than his staff feels insecure believes in the exercise of the authority and managerial prerogative
It is so hard to delegate whenthe delegator ... believes that subordinates are already overworked is not willing to delegate is feeling irreplaceable is not trusting people is not accepting different is giving too much away
Overall policy and planning foryour area of responsibility POLICY making it clear to your staff what you expect from them The allocation and control of delegated duties, the organization of your own time, PLANNING the establishment of routines for yourself and your team
Selection, training andperformance appraisal for your immediate subordinates •An abrogation of your managerial accountability to allow any of these function to be carried out for you by someone else
Promotion, praise anddiscipline for your immediate subordinates • it may be subject to organizational policies and decision of others •does not stop you from making recommendation
Anything your immediate boss wants you to do personally•You may resist if you think that your boss is misguided•but if your arguments are objected then you have little option but to comply
Final accountable for thework of your team You can’t delegate this under any circumstances
We should not delegate... overall policy and planning for our area of responsibility a concentrated focus on our value- added priorities selection, training and performance appraisal for our immediate subordinates
We should not delegate... promotion, praise and discipline for our immediate subordinates Anything our immediate boss wants us to personally leadership for our people final accountability for the work of our team
HOW TO DELEGATE ?Deciding what to delegateDeciding who can do itBriefingMonitoring progressAttitudes to delegatingChecklist for delegatingBenefits of delegating
Decentralization of Authority As the organization in size and complexity, decentralization tends to increase. The faster the rate of organizational growth, the greater the need of decentralization. It is an expansion of delegation of authority. It is wide distribution of authority and responsibility to the smallest unit. When the managers and supervisors at he middle and lower levels are given considerable autonomy in decision-making, the organization is considered to be decentralized.
Assumption of Decentralization Those most involved in the particular product, service, or consumers know what to do and can do it more quickly if given the authority to commit resources.
Advantages of Decentralisation Lift to Top Executives Motivation of Subordinates Quick decisions Growth & Diversification Executive Development Effective Communication Efficient Supervision and Control
Disadvantages ofDecentralisation Expensive Difficulty in Co-ordination Lack of Uniformity Narrow Product lines External Constraints
? How Delegation ofAuthority is differentfrom Decentralization?
Delegation of Decentralization authorityTemporary nature, can Permanent naturewithdraw. Decentralization withoutDelegation without delegation is not possible.Decentralization is possible It is important to delegateIt is not necessary for responsibility anddelegation of responsibility. accountability.It is necessary. It is not necessaryLess freedom to More freedom tosubordinates subordinatesLimited scope Wide scopeThe purpose is reduction of The purpose is expansion ofthe workload authority