This document discusses delegation of authority and decentralization. It defines delegation as the subdivision and sub-allocation of powers to subordinates to achieve effective results. There are three key elements to delegation: authority, responsibility, and accountability. While authority and responsibility can be delegated, accountability cannot. Delegation allows for multi-tasking, speedier decision-making, better coordination, and increased employee morale. However, there are also limitations to delegation from both the supervisor and subordinate perspectives. The principles of delegation and advantages and disadvantages of decentralization are also outlined.

1. Delegation of Authority
& Decentralization

2. • A manager alone cannot perform all the tasks assigned to
him… should delegate authority.
Definition:
• Subdivision and sub-allocation of powers to the
subordinates in order to achieve effective results.

3. Elements of Delegation
1. Authority –
 The power and right of a person to use and allocate
the resources efficiently, to take decisions and to give
orders so as to achieve the organizational objectives.
 Authority is the right to give commands, orders and get
the things done.

4. 2. Responsibility –
 The duty of the person to complete the task assigned
to him.
 Responsibility without adequate authority leads to
discontent and dissatisfaction among the person.

5. 3. Accountability –
 Being answerable for the end result. Accountability can
not be delegated.
 It arises from responsibility.

6. Significance of Delegation
 Muti Tasking:
 Speedy Decision:
 Better Coordination:

7.  Increase Employee morale:
 Developing managerial trait:
 Expansion of business :

8. Limitation of delegation
On the part of supervisors:
 Lack of ability to plan & direct
 Lack of willingness to share and let go
 Lack of trust on subordinates
 Lack of control

9. Limitation of delegation
On the part of Subordinates
 Lack of self confidence
 Fear for victim of criticism
 Dependability on decision
 Not accept delegation

10. Principles of Delegation of Authority
 Principle of result excepted-
 Principle of Parity of Authority and Responsibility-
 Principle of absolute responsibility-

11.  Principle of Authority level-
This principle suggests that a manager should exercise his authority
within the jurisdiction / framework given.
 Effective communication-
Superior should give clear instruction and delegation and
subordinates to take assistance and guidance from seniors.

12.  Decentralization
• In a decentralization concern, authority is retained by the
top management for taking major decisions and framing
policies concerning the whole concern.

13. Advantages of Decentralization
 Relieves top management from work load
 Motivates the lower level employees, as it make their job
more attractive and interesting.
 Encourages lower level employee to take initiatives.
 Realistic decision

14. Disadvantages of Decentralization
 Hampers uniformity in decision making.
 Increases the administrative cost due to duplication of work
 Difficult for top management to exercise control.