Delegation of Authority and Decentralization.pptx

Delegation of Authority and Decentralization

1. DELEGATION OF AUTHORITY AND DECENTRALISATION

2. DELEGATION OF AUTHORITY A manager alone cannot perform all the tasks assigned to him. In order to meet the targets, the manager should delegate authority. Delegation of Authority means division of authority and power downwards to the subordinate. Delegation is about entrusting someone else to do parts of your job. Delegation of authority can be defined as subdivision and sub allocation of powers to the subordinates in order to achieve effective results.

3. DEFINITION OF DELEGATION According to Louis A Allen “Delegation is the dynamics of management. It is the process a manager follows in dividing the work assigned to him so that he performs that part which only he can, due to his position and he can effectively get the other work done from others.”

4. ELEMENTS OF DELEGATION AUTHORITY Responsibility: ( i ) Responsibility can be assigned to some other person. (ii) The essence of responsibility is to be dutiful. (iii) It gets originated because of superior-subordinate relationship. Authority: ( i ) Authority can be assigned (delegated) to some other person. (ii) It is related to the post (with the change of post, even authorities change). (iii) It makes implementation of decisions possible. (iv) Authority is the key to a managerial job, because a post without authority cannot be a managerial post. Accountability: ( i ) Accountability cannot be delegated to some other person. (ii) It is only towards the delegators.

5. SIGNIFICANCE OF DELEGATION AUTHORITY Multi Tasking: ( i ) A manager is able to divide the work and allocated it to the subordinates. (ii) This helps in reducing his work load so that he can work on important areas such as planning, business analysis etc. (iii) With the reduction of load on superior, he can concentrate his energy on important and critical issues of concern. Speedy Decision: ( i ) Delegation of authority in a way gives enough room and space to the superiors. (ii) This speed up the process of decision making. Better Coordination: ( i )Delegation help manager and subordinates to establish close relationship with each other. (ii) In turn, helps in effective coordination at all levels ofmanagement .

6. Increase employee morale: ( i ) Delegation also helps in breaking the monotony of the subordinates so that they can be more creative and efficient. (ii) Through delegating powers, the subordinates get a feeling of importance. (iii) Thereby, his morale and self confidence is increased. Developing managerial trait: The manager get enough time trough delegation to concentrate on important issues, their decision making gets strong and in a way they can flourish the talents which are required in a manager. Expansion of business: ( i ) With effective results, a concern can think of creating more departments and division flow working. (ii) This will require creation of more managers which can be fulfilled by shifting the experienced, skilled managers to these positions.

7. LIMITATION OF DELEGATION Lack of ability to plan & direct. Lack of willingness to share and let go. Lack of trust on subordinates. Lack of control. Lack of self confidence. Fear for victim of criticism. Dependability on decision. Not accept delegation.

8. PRINCIPLES OF DELEGATION OF AUTHORITY Principle of Functional Definition:   An organization is comprised of different functional departments, each contributing to the organizational goals and, in turn, have their specific objectives. Thus, clearly defined objectives of each department, the expected results, the specific activities to be performed and intradepartmental relationships help the manager to determine the requirements of that specific position. Principle of Result Expected : Before actually delegating the authority to the subordinate, the manager must know the purpose of such delegation and the results expected from it. The goals, targets and the standard of performance must be clearly defined to direct the actions of the subordinate towards the accomplishment of a given task in a required manner. This principle helps in determining the authority to be delegated which is sufficient for completing the responsibility.

9. Principle of Parity of Authority and Responsibility:  This principle states that the responsibility and the authority co-exists. This means, if the subordinate is assigned certain responsibility, he must be given some level of authority i.e. power to perform his responsibility. Thus, both the responsibility and the authority shall be clearly defined to the subordinate, so that he knows what he is required to do within the powers delegated to him. Principle of Unity of Command:  According to this principle, every subordinate should have a single supervisor from whom he gets the authority and to whom he is solely accountable. This means the subordinate should get the instructions from a single superior and perform those responsibilities as assigned by him. In case, if the subordinate is required to report to more than one boss, then there may be a conflict and delay in the managerial operations.

10. Principle of Absoluteness of Responsibility :  This principle asserts that responsibility cannot be delegated. This means even after delegating the authority to the subordinate to perform certain tasks on the manager’s behalf; the manager will be solely responsible for the doings of the subordinate. In other words, whatever actions being taken by the subordinate, the manager will be accountable to his senior. Thus, the responsibility is absolute and remains with the superior. The Scalar Principle:  There are clear lines of authority in the organization, i.e. who is under whom. This helps the subordinate to know, who delegates the authority to him and to whom he shall be accountable. Also to whom he shall contact in case things are beyond his control. Thus, this principle asserts, that there should be a proper hierarchy in the organization. Principle of Exception:  According to this principle, the subordinate shall be given complete freedom to perform his responsibilities under the purview of his authority. The manager should not interfere in between his work and must allow him to do even if he commits mistakes. But in some exceptional cases, the managers can interfere and even withdraw the authority delegated to the subordinate

11. DECENTRALIZATION Decentralization refers to a specific form of organizational structure where the top management delegates decision-making responsibilities and daily operations to middle and lower subordinates.  The top management can thus concentrate on taking major decisions with greater time abundance. Business houses often feel the requirement of decentralization to continue efficiency in their operation. 

12. DEFINITION According to KOONTZ and O’DONNELL “ Decentralization is the systematic effort to delegate to the lowest levels all authority expect that can be exercised at a central point.” According to  Louis Allen , " decentralisation refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central point."

13. IMPORTANCE OF DECENTRALIZATION Decentralization helps to improve the quality of decisions/decision-making at the top level management . Decentralization facilitates diversification of activities Decentralization encourages development of managerial personnel Decentralization improves motivation Decentralization makes decision-making quicker and better Decentralization provides opportunity to learn by doing

14. LIMITATIONS OF DECENTRALIZATION Decentralization may lead to the problem of co-ordination at the level of an enterprise as the decision-making authority is not concentrated. Decentralization may lead to inconsistencies (i.e. absence of uniformity) at the Organization level. For example, uniform policies or procedures may not be followed for the same type of work in different divisions. Decentralization is costly as it raises administrative expenses on account of requirement of trained personnel to accept authority at lower levels. Even the services of such highly paid manpower may not be utilized fully, particularly in small organizations. Introduction of decentralization may be difficult or may not be practicable in small concerns where product lines are not broad enough for the creation of autonomous units for administrative purposes. Decentralization creates special problems particularly when the enterprise is facing number of uncertainties or emergency situations. The decision-making process gets delayed and even correct decisions as per the changing situations may not be possible.

15. THANKYOU ! Done by, BUELA BLESSY A PRIYAVARSHINI AG Ist MBA(TTM)