Importance of Delegation

The importance of delegation of authority for effective management cannot be

underestimated. Just as authority is the key to the manager's job, delegation of authority is
the key to the organisation. Through delegation, the authority is shared among various
individuals working in an organisation for the purpose of effective management. Without:
delegation, a formal organisation cannot exist.

Fig. 6.2 Delegation Stool (with three legs).

Through the process of delegation of authority, different authority relationship are

established. Delegation of authority relieves the manager from the heavy load to work and
enables him to concentrate on the higher functions of management. Further, the need for
delegation of power arises because of the natural limitations of human beings. As E.F.L.
Brech puts it, "The tasks involved in the management process of a particular enterprise or
section thereof are too large for any one particular person to undertake single-handed-too
large either because the amount of responsibility, of mental energy and son on, called for
are too big for one individual or because the tasks entailed require rather more time than
one individual can make available single-handed." Hence, the delegation of authority is the
only way to overcome the natural limitations of human beings.

Advantages of Effective Delegation

Following are some important advantages of effective delegation:

1. It relieves the manager of his heavy workload: As Urwick puts it, delegation is
something to prevent a manager from being crushed under the weight of accumulated
duties. Delegation of authority relieves the manager from the heavy load of work and
enables him to concentrate on higher functions of management. For example, it would
obviously be a waste of a company' s precious time - most of which should be spent on
dealing with the overall goals of the organisation - to cheek personally the time cards of the
lower level employees. Such a task can best be delegated to the lower level supervisors in
the organisation.

2. It leads to better decisions: Another advantage of delegation is that it frequently

leads 'to better decisions, since subordinates closest to the scene of action usually have the
best view of the facts, For example, for the national sales manager of a company based in
Delhi, the south zone sales manager will be the best position to allocate the sales territories
among the salesmen in that zone.

3. It speeds up decision-making: Effective delegation speeds up decision-making.

Valuable time is lost when subordinates must cheek with their superiors (who then may
have to cheek with their superiors) before making a decision. This delay is eliminated when
subordinates are authorised to take the necessary-decision on the spot.

4. It helps train subordinates and builds morale: Effective delegation causes

subordinates to accept responsibility and exercise judgment. This not only helps train
subordinates but also improves their self-confidence.

5. It helps create a formal organisation structure: Delegation of authority is the key to

formal organisation. Without delegation, a formal organisation structure cannot be created.
The process of delegation of authority results in what is generally known as superior-
subordinate relationship which gives rise to a formal organisation structure.

Principles of Delegation

While delegating authority, the following points should be borne in mind:

1. Before delegating authority, it should be ensured that the subordinates know the
objectives of the enterprise and their duties.

2. It is necessary that the subordinates must be given requisite authority to enable them
to carry out the duties that are assigned to them. In other words, authority should be
coextensive with responsibility of the subordinates.

3. The superior can only delegate duties to his subordinates but not responsibility. It
means, he cannot escape the responsibility for the duties delegated.

4. Before delegating authority, it is essential that subordinates should be made to

understand the limits of their authority and the area of their operation.

5. The subordinate should receive orders from one boss and should not he held
accountable to more than one superior. This is necessary to make delegation more
effective.
Obstacles of Delegation

Even though delegation of authority is so vital for the effective functioning of an

enterprise, it may not take place or it may not be an effective delegation. Difficulties arise
because of the manager's own attitude or of the attitude of the subordinates. Some of the
difficulties or obstacles are as follows:

A. On the Part of the Manager

1. He may be an autocrat and unwilling to delegate authority to his subordinates.

2. He may have the feeling that he can do the job much better himself.

3. He may not have confidence in the abilities of his subordinates and may feel that the
subordinates cannot do the work in the way in which he wants it to be done.

4. He may have passion for power and never wish to share it with others.

5. Delegation of authority is an art and he may he unfamiliar with the art of delegation.

6. He may have the fear that his subordinate may do the job better than himself and
outshine him.

7. There is a risk of wrong decisions that might be made by the subordinates and hence
the manager may have aversion to taking a chance.

8. If the manager is not efficient, he may fear that his inefficiency will be exposed. Hence,
he does not delegate.

B. On the Part of the Subordinates

1. The subordinate may not like to take decision on his own and he may want to avoid
shouldering the responsibility. So he may refuse to accept any authority.

2. He may refuse to accept authority because of his feeling that he may commit mistakes
in decision-making and his superior may criticise him for his mistakes.

3. He may refuse to accept any authority if he thinks that there are no adequate resources
which are necessary to discharge his duties effectively.
 4. Sometimes, he may refuse to accept authority because of his lack of self-confidence.

5. If there are no positive personal gains to a subordinate in accepting authority, he may

avoid it.

Effective Delegation

To make delegation more effective, the following guidelines need to be observed:

1. There must be parity among power, authority and responsibility and they should be
specified in clear terms.

2. There should be favourable management climate to encourage delegation.

3. The executive vacancies must be filled up with the best possible men.

4. There should be free interchange of ideas and suggestions for the attainment of
common goals and also an atmosphere of team-work.

5. Delegation should be clear and free from doubts as to what is delegated, how much
delegated, what precisely is expected to be done by the subordinates.

6. There should be incentives to subordinates for accepting responsibility in the process

of delegation.

7. A subordinate in order to enable him to handle the delegated job effectively, should be
given proper technical training.

8. There should be a suitable control system to cheek the subordinates' performance.