Delegation and Decentralisation

Delegation Type your text

• Delegation means conferring authority from one manager

or organisational unit to another in order to accomplish
particular assignments.
Features:
1. Delegation is authorisation to a manager to act in a certain
manner.
2. Delegation has dual characteristics- subordinate receives
authority, and superior retains original authority.
3. Authority once delegated can be enhanced, reduced or
withdrawn depending on the situation and requirement.
4. Delegation of authority is always to the position created through
the process of organising
5. A manager delegates authority out of the authority vesting in
him.
6. Delegation of authority may be specific or general.
 Steps in delegation

1. Determination of results expected

2. Assignment of duties
3. Authorisation for actions
4. Creation of obligation
 Principles of Delegation

1. Principle of Functional Departmentation

2. Principle of Unity of Command
3. Principle of Delegation of Results
4. Principle of authority level
5. Principle of absoluteness of authority
6. Principle of Parity of Authority and Responsibility
 Advantages of delegation

1. It relieves the manager of his heavy workload

2. It leads to better decisions
3. It speeds up decision-making
4. It helps train subordinates and builds morale
5. It serves as compensation to those employees who face
the prospect of limited advancement
6. It helps create a formal organisation structure
 Barriers to delegation
On the manager’s side –
1. Fear of loss of power
2. The “I Can Do it Better
Myself” Fallacy
3. Lack of confidence in
subordinates
4. Fear of being exposed
5. Difficulty in briefing
6. Inability to establish and
exercise proper controls
On the subordinates’ side –
1. Fear of criticism
2. They lack adequate
information and resources
to help them discharge
their duties properly.
3. Lack self-confidence and
initiative
4. No positive personal gains
to them for assuming extra
responsibility
Delegation Vs Decentralisation
 Decentralisation

• Advantages: • Disadvantages
1. Relief to Top executives 1. Expensive
2. Motivation of subordinates 2. Difficulty in coordination
3. Quick decisions 3. Lack of uniformity
4. Growth and diversification 4. Narrow product lines
5. Executive development 5. External constraints
6. Effective communication
7. Efficient supervision and
control
 Factors to be considered during Decentralisation

1. Size of the organisation

2. History and age of the organisation
3. Philosophy of top management
4. Abilities of lower-level managers
5. Strategy and the organisation’s environment
6. Nature of management function
7. Available controls
8. Costliness and significance of decisions.
 Effective decentralisation

1. Appropriate centralisation
2. Development of managers
3. Open communication
4. Coordination
5. Adequate controls