Welingkar’s Distance Learning Division

CHAPTER-08

DELEGATION OF AUTHORITY & DECENTRALISATION

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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”

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OPPORTUNITYThere is an island of opportunity in the middle of every difficulty.

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Characteristics of Authority

• Basis of getting things done

• Legitimacy

• Decision-making

• Implementation

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Sources of Authority

There are three theories regarding thesources of authority.

• The formal authority theory

• The acceptance of authority theory

• The competence theory

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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

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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.

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The competence theory

• This type of authority is invested with the persons by virtue of the office held by them.

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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.

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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

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Types of Delegation

• General delegation• Specific delegation• Writing delegation• Unwritten delegation• Formal delegation• Informal delegation• Downward delegation• Accrued delegation• Sideward delegation

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Advantages of Delegation

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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

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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

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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

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Steps involved in successful Delegation

Establishment of Controldefinite goals

ReportDeveloping personalDiscipline for supervision

Training

Establishment of definiteResponsibility

Motivation Determining whatto delegate

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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

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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

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Common faults in Delegation

- Close supervision - Lack of direction

- Lack of accountability

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Decentralization

- Decentralization means each section has its own workers to perform activities with the department.

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Advantages of Decentralization

Saving of time Greater efficiency and output

Maintenance of Departmentalsecrecy loyalty

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Disadvantages of Decentralization

No proper division Heavyof work expenditure

Duplicate of No Standardizationwork

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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.

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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

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Elements of responsibility

• There is an essence of obligation

• The responsibility may be general or specific

• Responsibility is a continuing process by nature.

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