Course Name: Modern Business

Organization & Management

Module 7: Delegation & Decentralization

Q1. Write a definition of Delegation of Authority.

Ans:

The procedure of distributing tasks or responsibilities with their associated decisions to a

subordinate employee on a temporary or long-term basis is delegation of authority.

All medium and large corporations have a hierarchy of positions. Usually, the managing director
or chief executive officer holds the overall responsibility for the daily operations. However, it is
not feasible to expect them to perform all the tasks of the organisation themselves.
So, leaders assign the work along with the responsibilities and authority to make decisions to
their employees. However, delegation always takes place top-down, and juniors cannot pass
tasks on to their seniors.

In a successful company, success is an outcome of shared authority and responsibility, which

allows the company to run in an organised manner. Delegation also promotes the development of
employees and improves their decision-making abilities by enabling them to demonstrate their
accountability and troubleshooting skills. It is the first step in recognising the potential in your
employees to shoulder the responsibility of promotion, thus helping them to achieve their career
goals.

Moreover, delegation of authority doesn't just benefit junior employees. Sometimes, managerial
staff can get overburdened with essential activities. In such cases, they may assign some tasks to
other employees on a short-term basis to save time. However, they are still accountable to their
own superiors.

Q2. Explain the process of delegation.

Ans:

1. Prepare a plan. The first step in delegating authority is to divide a big project into
smaller, achievable tasks. Then, review the workforce and time constraints. Determine
 which tasks are appropriate for the employees within the team. To select the best
candidate for handling those responsibilities, consider the qualifications, experience, past
performance and any training history. Distribute the assignments by utilising
suitable communication channels. You can either use email or conduct a meeting for this
purpose. Explain to your team members why you chose them for those specific tasks.
2. Provide clear instructions. Make your expectations clear from the beginning. Set the
deadlines, milestones and furnish all details of the expected results. This information has
to be completely unambiguous to avoid misunderstandings in the future. Before your
teammates begin on their assignments, conduct a question and answer round to clarify
doubts and provide any missing information.
3. Grant proper authorisation. Some processes require adequate permissions and
decision-making power. For example, suppose your acquisition manager wishes to
procure raw materials to perform a certain duty. To be able to do that, the manager needs
to know your suppliers. Additionally, they should have the authority to negotiate the
prices and arrange for the delivery. Hence, granting proper and timely authorisation is
extremely important.
4. Follow up on tasks. However, autonomy can backfire at times when employees end up
making wrong decisions. Ensure that the job is proceeding according to your expectations
by asking for periodic updates. The employees should be required to report to you
regularly so that you can solve any issues. Also, make sure you have some contingency
plans in place in case something goes wrong.
5. Analyse the results and provide feedback. Good leadership requires scouting for
potential candidates who can take your place once you've moved on to other roles. A
great way to do this is by analysing the results of delegated tasks to gauge the
effectiveness of your team members. If you are particularly satisfied with an employee's
performance, you can train them to handle more responsibilities. Conversely, provide
constructive feedback to those who need improvement and avoid delegating further tasks
until your next evaluation. Creating such a culture of support helps you build a fully
functional team.

Q3. State the principles of delegation.

Ans:

There are certain risks involved in handing over responsibilities. These risks are directly
proportional to the scope of the project. A decision made by a lower-level employee may cause
critical problems in the project or affect other departments in a chain reaction. As the scope of
the project increases, the time and costs involved in reversing such incorrect decisions rise
exponentially and may lead to expensive write-offs.

There are seven principles of delegation of authority that help to minimise such occurrences and
which should be a part of the risk planning process:
 1. The scalar principle: This management rule states that all employees must follow the
chain of command within an organisation. They should report to their respective line
managers and be aware that only their immediate superiors are authorised to delegate
duties.
2. Principle of defining function: Subordinates should know the detailed requirements of
the assignment and its impact on other jobs in the department. These requirements
include the process, the exact nature of the task and any sub-tasks or activities involved.
3. Principle of delegation by expected results: Effective delegation also depends on
clarity in expectations. The manager should define the results and the metrics for
assessing the quality of work clearly, which serves two purposes. It becomes easier to
decide whom to delegate the tasks to, and employees are fully aware of what's expected
of them. If you want your team members to do no more or less than what is asked of
them, clarify that right at the beginning. There shouldn't be any confusion in the minds of
employees regarding when to make decisions independently and when to approach
seniors.
4. Principle of unity of command: Different managers have their own leadership styles.
Any employee should have to turn to only one line manager for performance evaluation,
solution to problems and final reporting. In some cases, an employee has to follow the
instructions of more than one senior, which can create confusion. Furthermore, it has a
chance of damaging the professional relationship and causing division of loyalty.
5. Principle of balance in authority and responsibility: Responsibility and power go
hand-in-hand. A person without authority may not be able to carry out the necessary
obligations. Conversely, too much autonomy can lead to abuse of power. So, it should be
clear to everyone that while accepting any delegated task, it is their responsibility to
perform according to expectations within the purview of the authority granted to them.
6. Principle of authority level: Some managers may find it difficult to relinquish control.
A few tend to micromanage, while others fear adverse outcomes. But if they always make
the decisions for their juniors, they will never create worthy successors. Allowing
employees to make their own decisions within the limits of their authority inspires
confidence and trust. If there are any doubts, or if the progress is not satisfactory,
communicating this problem with juniors and advising corrective measures helps to set
them on the right course again.
7. Principle of absolute responsibility: A junior employee is completely answerable to
their immediate superior when accepting tasks and responsibilities. However, the
manager remains responsible for the smooth operation of the project.

Q4. Write a berries to effective delegation.

Ans:

To make delegation effective, the spirit and willingness of both the parties are crucial. Though
delegation is a powerful tool to motivate the subordinates and to develop managerial skills in
them, if adequate care is not exercised the result may be considerable anxiety for both superiors
and subordinates. Following are some of the reasons why delegation often fails in organizations
to which both superiors and subordinates are responsible.

Lack of Confidence in Subordinates: Lack of trust and confidence on subordinates’ abilities

and skills make the superiors reluctant to delegate. As a result, subordinates lose initiative and
frequently seek the guidance of the bosses to know whether they are doing the things correctly.

The “I can do it better myself fallacy”: Some managers always suffer from a feeling that they
only can do the job better. Consequently two things happen. First, spending time on a task a
subordinate could perform and as a result the manager may not be able to perform other
important tasks like policy formulation and supervision. Second, unless the manager allows
subordinates to attempt new tasks, the subordinates will be unable to develop their skills. Thus
by insisting on doing things themselves managers often fail in their responsibility for training
and grooming subordinates higher levels responsibilities.

Lack of ability to direct: Some managers become so involved in day-to-day operations that they
ignore to see the broader picture. Unable to understand the long term perspective of the work
flow, they do not fully realize the importance of distributing work among subordinates. Some
managers deliberately do this because of lack of confidence in their supervisory abilities.

Aversion to Risk: Since the superior can not absolve himself of the final performance of the
task, he may fear that delegating the job will cause problems. Further, those superiors who see a
threat in the subordinates always try to avoid delegation. This is mostly due to the mindset where
superior fears that he may be outsmarted by the subordinate and eventually the latter may
become a potential threat to this position.

Absence of Selective Controls: When certain duties are delegated to subordinates, the superior
has to ensure proper controls in the form of feedback about performance. It gives the superior the
opportunity of knowing the problem before much damage takes place. If controls are not
adequate and effective, manager has good reason to avoid authority delegation.

Inadequate Information and Resources: The subordinate lacks the information and resources
needed to do the job successfully. Some managers with a view to let down their subordinates
may deliberately make the delegation unclear. As a result the subordinate lands himself in
confusion as to the exact nature of the duties and the authority that he can exercise. The motive
of the superior in such cases may be to make the subordinate fail in the execution.

Q5. What are the measures to make delegation effective?

Ans:

1. Know What to Delegate

Not every task can be delegated. For example, performance reviews or any personnel matters
should be handled by you. After all, hiring the right talent and knowing each employee’s
strengths and weaknesses will ultimately make you better at assigning deliverables and
transferring responsibility to the appropriate team members.

Several other day-to-day activities don’t require your oversight, though. Is there a task you
regularly tackle despite knowing your co-worker is better equipped to complete it? Would
assigning the project to other employees help bolster their careers? If there’s someone who could
do the work better, or you think this could be a teachable moment, delegate. It will show you
trust and value your team, while also giving you time to focus on more strategic projects.

2. Play to Your Employees’ Strengths and Goals

Every employee should have goals they’re working toward, and within those goals are
opportunities to delegate. For example, maybe you have a direct report who wants to gain
management experience. Is there an intern they could start supervising, or a well-defined project
they can own the execution of? The type of work you delegate could factor into their
professional development plan.

For other tasks, there’s likely someone on your team with the specific skill set needed to achieve
the desired result. Leverage that and play to your employees’ strengths. When someone has a
higher chance of excelling, they’re more motivated and engaged, which then benefits the entire
business.

3. Define the Desired Outcome

Simply dumping work onto someone else’s plate isn’t delegating. The projects you hand off
should come with proper context and a clear tie into the organization’s goals.

“You’ve got to have real clarity of objective,” says Harvard Business School Professor Kevin
Sharer in the online Management Essentials course. That includes having alignment on “what
does good look like” and by what timeline, and “the technique of measuring accomplishment.”

Before anyone starts working on a project, they should know what they need to complete and by
when, including the metrics you’ll use to measure the success of their work.

4. Provide the Right Resources and Level of Authority

If the person you’re delegating work to needs specific training, resources, or authority to
complete the assigned project, it’s your role as a manager to provide all three. Setting someone
up for an impossible task will frustrate both sides; your colleague won’t be able to achieve the
desired outcome, and then you’ll likely need to put that work back on your to-do list.

This is also where you need to fight the urge to micromanage. Telling your co-worker, step-by-
step, how you would accomplish the task and then controlling each part of the process won’t
enable them to learn or gain new skills. Focus instead on what the desired end goal is, why the
task is important, and help address any gaps between the outcome and their current skill set.

5. Establish a Clear Communication Channel

While you want to avoid micromanaging, you do want to establish a communication channel so
that the person you’re delegating to feels comfortable asking questions and providing progress
updates.

“You’ve got to have some way to communicate so that the person you delegated to can come
back to you and report,” says Sharer in the Management Essentials course. “You’ve got to have
some way along the way to see how things are going. It isn’t fire and forget. That is, ‘I just give
you the task and I don’t worry about it anymore. We’ve got to have some way to monitor the
progress along the way without me getting in your way.’”

Setting up regular check-ins and providing feedback throughout the project can help with this.

6. Allow for Failure

This step is particularly important for the perfectionists who avoid delegating because they think
their way is the only way to get the work done. You need to allow for failure—not because your
employees might fail, but because it will enable experimentation and empower the people you’re
assigning tasks to, to take a new approach.

If you’re open to new ideas and approaches to the work, you’ll have an easier time delegating
when able.

7. Be Patient

As a manager, you likely have more years of experience in your field. Because of this, a task you
can complete in 30 minutes might take an employee a full hour the first time they complete it.

You might be tempted to refrain from delegating certain tasks knowing that you can get them
done faster, but be patient with your employees. Think back to the first time you completed a
specific task early on in your career. You probably weren’t as efficient as you are now; your time
management skills have improved.

As you continue to delegate and your employees become more familiar with the tasks that need
to be completed, you’ll notice that the work will get done faster over time.

8. Deliver (and Ask For) Feedback

In addition to monitoring progress, you should also deliver feedback to your employees after the
tasks you’ve delegated are complete.

If a task wasn’t completed as assigned, don’t be afraid to offer constructive criticism. Your
employees can take this feedback and make changes the next time a similar task is assigned. On
the other hand, remember to provide positive feedback and show your appreciation when a task
was done well.

To ensure you’re delegating effectively, you’ll also want to ask your team for any feedback that
they can give you. Ask your employees if you provided clear instructions and determine if
there’s anything you can do to better delegate in the future.

9. Give Credit Where It’s Due

After you’ve delegated tasks and they’ve been seen through to completion, credit those who
achieved the work.

“Recognizing that success is because of your team is not only right, but it has the added benefit
of making those around you more engaged—making you even more successful,” writes HBS
Online Executive Director Patrick Mullane for Richtopia. “It’s counter-intuitive, but not
claiming success for yourself will lead to more future wins.”

The more you thank and credit those you’ve delegated work to, the more likely it is they will
want to help you on other projects in the future.

Q6. Explain the definition of Decentralization.

Ans:
Decentralisation is referred to as a form of an organisational structure where there is the
delegation of authority by the top management to the middle and lower levels of management in
an organisation.
In this type of organisation structure, the duty of daily operations and minor decision-making
capabilities are transferred to the middle and lower levels which allow top-level management to
focus more on major decisions like business expansion, diversification etc.
Delegation refers to the assigning a portion of work and the associated responsibility by a
superior to a subordinate. In simple words, when delegation is expanded on an organisational
level, it is called decentralisation.
Q7. Write short note on Growth and Diversification.

Ans:

Under decentralization, every single product division attains sufficient autonomy to exercise their
creative flair. In this way, the top-level management can create healthy competition amongst
different divisions.

While carrying out a discussion on the advantages and disadvantages of decentralization, it is

imperative to note that it aids subordinates in exercising their own judgment.

They even develop managerial skills and help in solving the succession problem which ultimately
ensures the growth and continuity of an organization.

Q8. What is Quick Decision Making?

Ans:

Another important pointer in the advantages and disadvantages of decentralization is that decisions
are taken and executed by authorized personnel. This, in turn, results in faster and
accurate decisions which are well aware of the real scenario.

Q9. Write about Better Supervision and Control.

Ans:

Lower level managers can alter production schedules and work assignments with adequate
authority. They can even take disciplinary actions and recommend the promotion of their peers.
This, in turn, leads to greater efficiency in supervision. Performance evaluation of each
decentralized unit helps in exercising adequate control.