notes for BBA

1. DELEGATION OF AUTHORITY
Delegation is the process which enables a person
to assign a work to others and delegate them with
adequate authority to do it.
Delegation is the process of sharing work and
authority between a manager and his
subordinates. It helps in completing the work in
time, reduces the workload of manager and
motivates and develops the subordinates.

2. NEED OF DELEGATION
• Reduces work load of managers:- it permits a manager to
share his work load with his subordinates. By passing on some
of his own work to the subordinates, the manager is able to
concentrate on more important aspects of his work.
• Basis of superior subordinate relation:- the flow of authority
from the top management to the lower levels is directed and
regulated by the process of delegation. By which mutual trust
increases.
• Improves managerial effectiveness:- the manager who
delegates authority can perform much more than the one
who does not.
• Motivate subordinates:- it implies grant of authority to the
subordinates along with responsibility. As a result,
subordinates have a sense of importance.

3. • Develops managers:- it opens up opportunities for managers
to acquire leadership and other skills.
• Facilitate organizational growth:- because by delegation an
organisation can give more work to the managers. As a result,
the organisation grows.

4. PRINCIPLES OF DELEGATION
• Authority should be commensurate with responsibility:- it should be
adequate- neither more nor less than adequate- to enable him to make
all those decisions and take all those actions that are required for
effective job performance.
• Interference should be minimum:- if the decision turns out to be too
complex to be handled by the subordinate, the superior must help and
guide him, and even himself make the decision if its consequences
appear to be more far reaching than what had been visualized earlier.
• Tolerance of mistakes:- it is possible that subordinate can take wrong
decisions, but if he is subjected to strong disapproval, he may refrain
from making decisions himself, and adopt the safer course of asking the
boss.
• Adequate controls should be established:- one can delegate authority
but not responsibility, it becomes necessary for him to establish
adequate controls to ensure that his subordinates exercise authority
properly and achieve determined goals.

5. • Goals should be predetermined:- it is essential that the jobs of
subordinates should clearly defined. This will provide direction to
the efforts of the subordinates.
• Policies, rules and procedures should be established to guide
decisions:- these will provide the subordinates a framework for
decision making and serve as standards for testing appropriateness
of their decisions.
• Upward delegation should not be allowed:- subordinates refer
problems to the superior rather than tackling them at heir own
level. This practice frustrates the very purpose of delegation and
increases pressure on the limited time of the superior.
• Delegation should be rewarded:- this can be done by making
delegation as one of the criteria of performance evaluation.
Similarly, subordinates should be encourage to accept
responsibility and take initiative.

6. PROCESS OF DELEGATION
• Determination of results expected:- authority should be
delegated to the position according to the results expected from
that position. It is essential that authority delegated to a manager
is adequate to ensure the ability to accomplish results expected.
• Assignment of duties:- delegation involves assignment of
activities by a manager to a subordinate. A man’s duties will be
clear to him only when he knows what activities he must
undertake and what goals he must fulfill.
• Authorization of action:- the third point involves granting of
permission to take actions like making commitments, use of
resources and other actions necessary to get the assigned work
done.
• Creation of obligation:- the last point of delegation is to create
obligation on the part of subordinate for the satisfactory
performance of his assignments. A subordinate is responsible for
the total activities assigned to him.

7. PROBLEMS IN DELEGATION
• On the part of delegator:-
• Greed for authority:- a manager may not delegate his authority due to
greed of authority. He is known as an autocrat. He thinks that if he
delegates authority, his influence will be reduced in the organisation.
• Lack of receptiveness:-a manager may feel that none can do the job
better than he himself can do. He does not want to give other people’s
ideas a chance.
• Lack of trust in subordinates:- lack of confidence in the capacity, ability
and dependability of the subordinates obstructs the superior to delegate
authority.
• Lack of control:- if managers does not set up adequate controls. Effective
delegation requires adequate controls.
• Fear of subordinates:- this fear may take two forms: first, if the
subordinate perform the superiors work so well that he may occupy his
position. Second, the subordinates increasing ability might earn him a
promotion and he may lose a good subordinate.

8. • Lack of ability or fear of exposure:- if a manager is a weak one, may
hesitate to delegate his authority as his work methods and
procedures are likely to be faulty.
• Unwillingness to take calculated risk:- delegation involves certain
risk that subordinate may not make sound decisions. Managers
who are unwilling to take risk will never be able to make any
decision.
• On the part of delegant:-
• Lack of self confidence:-
• Dependence on boss:-
• Fear of criticism:-