Delegation of Authority
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Transcript of Delegation of Authority
Welingkar’s Distance Learning Division
CHAPTER-08
DELEGATION OF AUTHORITY & DECENTRALISATION
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Introduction
• Authority is the power to make decisions which guide the actions of others. Delegation of authority contributes to the creation of an organization.
• It is “Right of decision and command”
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
OPPORTUNITYThere is an island of opportunity in the middle of every difficulty.
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Characteristics of Authority
• Basis of getting things done
• Legitimacy
• Decision-making
• Implementation
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Sources of Authority
There are three theories regarding thesources of authority.
• The formal authority theory
• The acceptance of authority theory
• The competence theory
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
The formal authority theory
• Authority flows from top to bottom through the structure of an organization.
Board of Directors
General Manager
Sales Manager
Sales Representative
WorkersWe Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
The acceptance of authority theory
• Authority flows from the superior to the subordinates whenever there is an acceptance on the part of the subordinates.
• Zone of acceptance depends upon various factors like rewards, subordinate behavior pattern, dismissal or non acceptance results, special knowledge, confidence etc.
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
The competence theory
• This type of authority is invested with the persons by virtue of the office held by them.
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Delegation
Meaning: Delegation is a process which enables a person to assign a work to others and delegate them with adequate authority to do it. Importance of Delegation: It is the most important methods of training subordinates and building morals. This helps to concentrate on planning, organizing and controlling.
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Elements of Delegation• Assignment of duties or responsibilities• Delegation of authority• Accountability
Principles of Delegation• Delegation to go by results expected • Delegation of authority but Non-delegation of
responsibility • Authority and responsibility should commensurate with
each other• Unity of command• Definition of limitations of authority
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Types of Delegation
• General delegation• Specific delegation• Writing delegation• Unwritten delegation• Formal delegation• Informal delegation• Downward delegation• Accrued delegation• Sideward delegation
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Advantages of Delegation
We Learn – A Continuous Learning Forum
Saving of time
Expansion and Diversification
Opportunity for development
Benefit of specialized
service
Delegation of authority
Basis of effective
functioning
Advantages of Delegation
Revolution of work
Satisfaction to subordinateInterest and
Iniative
Efiicient running
Welingkar’s Distance Learning Division
Problems of Delegation
Hesitation on the part of Superior• Reasons
- Perfectionism - Autocratic attitude - Directions - Confidence - Control - Avoidance of risk - competition- Inability of the subordinate- Inability of the superior
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Problems of Delegation
Hesitation on the part of SubordinatesReasons• Love of spoon feeding• Easier to ask• Fear of criticism• Lack of Information or resources• Lack of self confidence• Other work• Inadequate incentives• Fear of failure
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Steps involved in successful Delegation
Establishment of Controldefinite goals
ReportDeveloping personalDiscipline for supervision
Training
Establishment of definiteResponsibility
Motivation Determining whatto delegate
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Prerequisite for Effective Delegation of Authority
• Superior must understand the authority and responsibility of their own.
• Superior must decide the portion of his authority that is to be delegated.
• Superior should have knowledge of abilities and inabilities of subordinates
• He must ensure the subordinates have understood the delegated work.
• He should delegate only the routine functions to subordinate• He must understand the need, importance and value of
delegation
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Prerequisite for Effective Delegation of Authority
• He should delegate the work which can be performed independently
• He must dissuade the subordinate from taking decision by themselves
• He must release the decision making powers to his subordinate
• Adequate communication network• Clear definition of standard of accountability• Delegation must be done in accordance with overall plan.• Delegation of authority should be confined to organizational
structure
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Common faults in Delegation
- Close supervision - Lack of direction
- Lack of accountability
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Decentralization
- Decentralization means each section has its own workers to perform activities with the department.
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Advantages of Decentralization
Saving of time Greater efficiency and output
Maintenance of Departmentalsecrecy loyalty
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Disadvantages of Decentralization
No proper division Heavyof work expenditure
Duplicate of No Standardizationwork
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Responsibility
• Meaning: It is the obligation to perform the tasks, functions or assignments.
• Definition: Responsibility is an obligation to perform certain functions and achieve certain results.
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Elements of responsibility
• It arises from superior–subordinate relationship.
• It ensures from contractual agreement.
• The responsibility cannot be transferred to anybody.
• It is created by acceptance of authorityWe Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Elements of responsibility
• There is an essence of obligation
• The responsibility may be general or specific
• Responsibility is a continuing process by nature.
We Learn – A Continuous Learning Forum