Delegation and Decentralisation

1. Delegation and Decentralisation
Delegation: - Delegation is the process a manager follows in dividing the work assigned to
him so that he performs that part which only he because of his unique organisational
placement, can perform effectively and so that he can get others to help with what
remains.”
Elements of Delegation
 Authority: - Authority refers to the right of an individual to command his
subordinates and right to take action and decision within the limits of his position. It
flows from top to bottom i.e. from the superior to his subordinates. All the people
who have the authority should know what the scope of their authority is & shouldn’t
mis utilize it authority should be accompanied with an equal amount of
responsibility. Delegation the authority to someone else doesn’t imply escaping from
accountability. Accountability still rest with the person having the utmost authority.
 Responsibility: - The obligation of a subordinate to perform the assigned job
properly is known as responsibility. It always flows upwards. Responsibility without
adequate authority leads to discontent & dissatisfaction in a person. If more of
authority is granted, it could get misused and if more of responsibility is given, it may
make a person ineffective.
 Accountability: - Accountability means being answerable for the final results. It is an
obligation to carry out responsibility and to give reports about one’s performance to
the superior. It can’t be delegated.
Authority Responsibility
Accountability

2. Importance of Delegation: -
1. Effective Management: - Delegation of authority helps the managers to free
themselves from the burden of routine tasks. They can then focus better on such
priority areas as need to be pursued by them alone. Delegation enables them to
concentrate more on diversification and expansion of business activities. They can
concentrate on core areas which results in developing opportunities to excel in their
respective areas.
2. Employee Development: - Delegation develops an enthusiasm the subordinate to
deal effectively with great challenges. It motivates the employee to develop
themselves for higher position, as they are given opportunities to use their skills and
talents for gaining excellence in their jobs.
3. Motivation of Employees: - Delegation involves faith on the part of superiors and
commitment on the part of subordinates. This helps in enhancing self-esteemand
confidence of all employees at large. Thus, it motivates all of them which is essential
for smooth achievement of organisational goals.
4. Facilitation of Growth: - Delegation facilitates growth and expansion of an
organisation by providing trained and experienced personnel for taking up leading
position in some new project.
5. Basis of management hierarchy: - Delegation of authority determines who has to
report to whom creates the chain of superior / subordinate relationships which is
the basis for hierarchy of management.
6. Batter Coordination: - The elements of delegation namely authority, responsibility
and accountability clearly define the power, duties and the answerability attached to
the various position in an organisation.
Effective
Management
Employee
Development
Motivation of
Employee
Fascilitation
of growth
Basis of
management
Hierarchy
Better
Coordination

3. Decentralisation: - Everything which goes to increase the importance of a subordinate’s role
in decentralisation, every thing that goes to reduce it is centralisation.”
Centralisation & Decentralisation: - Completely centralised organisation means complete
authority of decision-making being at the top level only. On the other hand, completely
decentralised organisation means delegation of decision-making function right till the
lowest level of the hierarchy. This would reduce the need for higher managerial positions
both situations are rather unrealistic. An organisation can neither be totally centralised nor
totally decentralised. Usually, centralised is suitable for small business however when
business organisation expands in size it naturally moves towards decentralisation.
1. Develops initiative among subordinates: - Decentralisation helps the mangers at the
lower levels to take all those decisions which are for the betterment of organisation
on the own and to develop solution for solving the various problems they face. This
helps in enhancing confidence and self-reliance among the employees.
2. Develops managerial talent for the future: - Decentralisation provides a chance to
the employees to prove their abilities by handling various assignment independently.
Such opportunities to take decision increase their knowledge & experience at all
levels. It also provides qualified manpower for fulfilling the top through promotions.
3. Quick decision making: - Decentralization promotes independent and quick decision
making by subordinate as they are close to the operation and are in constant touch
with all activities of their departments. Approval from various levels being not
required, decision can be taken much faster on their own.
4. Relief for top management: - It relieves the top executives of excessive workload as
the common and day to day routines are assigned to the subordinates. The saved
time can be utilized by them in making strategic plans and providing direction to the
organisation for further growth.
Developes
initiative among
subordinates
Developes
managerial talent
for the future
Quick decision
making
Relief for top
management
Facilities growth Bettercontrol

4. 5. Facilitates growth: - Decentralisation enables the managers at the lower level as well
as the departmental head to perform to their full protentional and also develops a
sense of competition among the departments. Such competitive spirit obviously
contributes a lot towards growth of the enterprise too.
6. Better control: - Decentralisation helps in ascertaining the contribution of each
department in meeting the objectives of the organisation by using various control
techniques like balance score card, management information system etc.