This series include Organising function of management for XII Business Studies students for AISSCE preparation.

1. Organising
XII Business Studies
Delegation of Authority
Session : 8 Vikash Residential School

2. Prepared by Pratap Naik
Delegation of Authority
Learning Objectives
 Concept
 Principle of Absoluteness of Accountability
 Elements of Delegation
 Authority
 Responsibility
 Accountability
 Comparative View: Authority; Responsibility; Accountability

3. Prepared by Pratap Naik
Delegation of Authority
What is Delegation?
Delegation refers to the downward transfer of authority from a superior to a subordinate.
 Without delegation, his activities would be restricted to only what he himself can do.

4. Prepared by Pratap Naik
Delegation of Authority
What is Delegation?
Delegation refers to the downward transfer of authority from a superior to a subordinate.
 Without delegation, his activities would be restricted to only what he himself can do.
 Delegation helps a manager to extend his area of operations.
 So every manager has to share some of his authority for effective completion of task.
 It is a pre-requisite to the efficient functioning of an organisation.
o Because it enables a manager to use his time on high priority activities.

5. Prepared by Pratap Naik
Delegation of Authority
o It also satisfies the subordinate’s need for recognition.
o Provides subordinates with opportunities to develop and exercise initiative.

6. Prepared by Pratap Naik
Delegation of Authority
Principle of Absoluteness of Accountability
According to this principle delegation is not a process of abdication.
 It means accountability is absolute in nature and it can never be passed or delegated.
 Thus, irrespective of the extent of delegated authority, the manager shall still be accountable to the same
extent as before delegation.
 Moreover, the authority granted to a subordinate can be taken back and re-delegated to another person.
Abdication

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Elements of Delegation
Delegation is the entrustment of responsibility and authority to another and the creation of
accountability for performance.
Delegation of Authority
Authority
Responsibility
Accountability
Delegation

8. Prepared by Pratap Naik
1. Authority
Authority refers to the right of an individual to command his subordinates and to take action within the
scope of his position.
 Simply it is the right to take decisions.
 Authority originates by virtue of an individual’s job position. (from the established scalar chain)
 Authority flows from top to bottom;
 The extent of authority is highest at the top management levels and reduces as we go down.
 Authority determines the superior subordinate relationship wherein
o The superior communicates his decision to the subordinate,
o And the subordinate executes the decision as per the guidelines of the superior.
 Authority is restricted by laws and the rules & regulation of the organisation.
Delegation of Authority

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2. Responsibility
Responsibility is the obligation of a subordinate to properly perform the assigned duty.
 It arises from a superior–subordinate relationship
 Because the subordinate is bound to perform the duty assigned to him by his superior.
 Responsibility flows upwards i.e., a subordinate will always be responsible to his superior.
 Authority must be at par with the assigned responsibility.
 If authority granted is more than responsibility, it may lead to misuse of authority.
 If responsibility assigned is more than authority it may make a person ineffective.
Delegation of Authority

10. Prepared by Pratap Naik
3. Accountability
Accountability implies being answerable for the final outcome.
 Once authority has been delegated and responsibility accepted, one cannot deny accountability.
 Accountability cannot be delegated as it is absolute in nature.
 Accountability flows upwards.
 It means subordinate will be accountable to a superior for satisfactory performance of work.
 It is generally enforced through regular feedback on the extent of work accomplished.
 The subordinate will be expected to explain the consequences of his actions or omissions.
Conclusion
 It can be concluded that while authority is delegated, responsibility is assumed, accountability is imposed.
 Responsibility is derived from authority and accountability is derived from responsibility.
Delegation of Authority

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Comparative View:
Authority, Responsibility and Accountability
Basis Authority Responsibility Accountability
Meaning Right to command.
Obligation to perform an assigned
task.
Answerability for outcome of
the assigned task.
Delegation Can be delegated. Cannot be entirely delegated. Cannot be delegated at all.
Origin Arises from formal position. Arises from delegated authority. Arises from responsibility.
Flow
Flows downward from
superior to subordinate.
Flows upward from subordinate
to superior.
Flows upward from subordinate
to superior responsibility

12. Prepared by Pratap Naik
Delegation of Authority
 Concept
Delegation is downward transfer of authority from a superior to a subordinate.
 Principle of Absoluteness of Accountability
Accountability cannot be delegated or transferred
 Elements of Delegation
 Authority : Power to take decisions
 Responsibility : Obligation to complete a task
 Accountability : Answerability for completion/non-completion of task
 Comparative View: Authority; Responsibility; Accountability
Recap

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Session Complete Vikash Residential School
XII Business Studies