CH 8 Delegation

L-8-

DELEGATION AND DECENTRALISATION OF AUTHORITY

 

MEANING AND DEFINITION OF DELEGATION OF AUTHORITY

Delegation of authority refers to the process of transferring power, responsibility, and decision-making authority from a superior or manager to a subordinate or employee within an organization. It involves granting someone else the authority to act on behalf of the delegator and make decisions within a specified scope of work or area of responsibility.

Delegation is an essential management function as it helps in sharing workload, empowering employees, and improving organizational efficiency. By delegating authority, managers can focus on strategic tasks while enabling subordinates to take on more responsibility and contribute to the achievement of organizational goals.

In delegation, the delegator retains overall accountability for the tasks and outcomes but transfers the authority to carry out those tasks to a subordinate. The delegator sets the expectations, provides necessary resources and support, and establishes the boundaries within which the delegatee can exercise authority. The delegatee, on the other hand, assumes the responsibility to complete the assigned tasks, make decisions, and report back to the delegator.

Delegation of authority has several benefits, including:

Employee Development: Delegation provides opportunities for employees to develop their skills, knowledge, and decision-making abilities. It helps in their professional growth and enhances their job satisfaction and motivation.

Time Management: Delegation allows managers to focus on important strategic tasks and decision-making, as they can delegate routine or operational activities to their subordinates. This improves time management and increases overall productivity.

Teamwork and Collaboration: Delegation promotes teamwork and collaboration within an organization. It fosters trust, encourages cooperation among team members, and strengthens the overall effectiveness of the team.

Improved Decision Making: Delegation distributes decision-making authority to those who are closer to the tasks and have relevant expertise. This leads to quicker and more effective decision making, as decisions can be made at the appropriate level in the organization.

Overall, delegation of authority is a crucial management process that empowers employees, improves organizational efficiency, and fosters growth and development within an organization.

ELEMENTS OF DELEGATION

The process of delegation involves various elements that contribute to its effective implementation. These elements are essential for a clear understanding of roles, responsibilities, and the successful transfer of authority. The key elements of delegation include:

Delegator: The delegator is the person who delegates authority to another individual or subordinate. They hold the higher position in the organizational hierarchy and have the power to transfer responsibilities and decision-making authority.

Delegatee: The delegatee is the person to whom authority is delegated. They receive the assigned tasks, responsibilities, and decision-making authority from the delegator. The delegatee is responsible for executing the delegated tasks effectively and delivering the desired results.

Authority: Authority refers to the power and rights assigned by the delegator to the delegatee. It includes the decision-making authority, resources, and control over specific tasks or areas of responsibility. The delegator grants authority to the delegatee to act on their behalf within defined limits.

Responsibility: Responsibility is the obligation or duty assigned to the delegatee to accomplish the delegated tasks or objectives. It involves being accountable for the outcomes and performance related to the delegated authority. The delegatee is responsible for executing the assigned tasks effectively and delivering the desired results.

Accountability: Accountability is the obligation of the delegatee to report back to the delegator on the progress, results, and any issues related to the delegated tasks. The delegatee is accountable for the outcomes and performance within the delegated authority. They provide feedback, updates, and seek guidance or support as necessary.

Communication: Effective communication is crucial in the delegation process. The delegator needs to clearly communicate the delegated tasks, expectations, and the extent of authority to the delegatee. The delegatee should seek clarification, ask questions, and maintain open communication with the delegator throughout the delegated tasks.

Feedback and Support: The delegator provides feedback, guidance, and support to the delegatee during the delegation process. They monitor the progress, offer assistance or resources when needed, and provide constructive feedback to ensure the successful completion of delegated tasks.

These elements work together to establish a clear framework for delegation, ensuring that authority is transferred smoothly, tasks are accomplished effectively, and accountability is maintained throughout the process.

AUTHORIY, RESPONSIBILIY AND ACCOUNTABILITY

Authority, responsibility, and accountability are key concepts in the delegation and management of tasks within an organization. Let's define each of these terms:

Authority: Authority refers to the power and rights granted to an individual or position within an organization to make decisions, give orders, and take actions. It is the legitimate power to direct and control others in order to accomplish organizational goals. Authority is typically vested in managerial positions and is based on the hierarchical structure of the organization. Those with authority have the right to command and expect compliance from subordinates.

Responsibility: Responsibility is the obligation or duty to perform assigned tasks or fulfill specific roles within an organization. It is the accountability for the outcomes and results of those tasks. When a person is given responsibility, they are expected to carry out their duties and meet the expectations associated with their role. Responsibility involves taking ownership of the tasks, ensuring their completion, and being answerable for the results.

Accountability: Accountability is the answerability and liability for the outcomes of assigned tasks or responsibilities. It is the obligation to explain, justify, and accept the consequences of one's actions or decisions. When individuals are held accountable, they are expected to deliver results and can be evaluated based on their performance. Accountability ensures that individuals are held responsible for their actions and that there is transparency and integrity in the execution of tasks.

In summary, authority gives individuals the power and right to make decisions and direct others, responsibility is the obligation to perform assigned tasks, and accountability is the answerability for the outcomes and results of those tasks. These concepts work together to establish a clear framework for managing tasks and ensuring that individuals are empowered, assigned appropriate responsibilities, and held accountable for their performance.

IMPORTANCE OF DELEGATION OF AUTHORITY

Delegation of authority is an important aspect of effective management within an organization. Here are some key reasons why delegation of authority is important:

Efficient utilization of resources: Delegation allows managers to distribute workload and responsibilities among team members. By empowering others to take on tasks and make decisions, managers can optimize the use of available resources, including time, skills, and expertise. Delegation helps in leveraging the capabilities of the entire team and ensures that work is completed more efficiently and effectively.

Development of employees: Delegation provides opportunities for employees to learn and grow. When managers delegate tasks and authority to their subordinates, it helps in developing their skills, knowledge, and decision-making abilities. Delegation allows employees to take on new challenges, gain experience, and enhance their professional capabilities. It also promotes a sense of ownership and motivation among employees, leading to increased job satisfaction and engagement.

Focus on higher-level tasks: Delegation allows managers to focus on strategic and higher-level responsibilities. When managers delegate routine or less critical tasks to their team members, they can devote more time and energy to important decision-making, planning, and guiding the overall direction of the organization. Delegation frees up managerial time, enabling them to concentrate on critical activities that require their expertise and attention.

Promotes teamwork and collaboration: Delegation fosters a culture of teamwork and collaboration within an organization. By involving employees in decision-making and task execution, delegation encourages collaboration, communication, and mutual support among team members. It builds trust and enhances relationships within the team, leading to improved teamwork and overall organizational performance.

Succession planning: Delegation plays a crucial role in succession planning and leadership development. By delegating authority and responsibilities to potential future leaders, organizations can identify and groom individuals for higher-level positions. Delegation allows aspiring leaders to gain hands-on experience, demonstrate their capabilities, and prepare for future leadership roles. It ensures a smooth transition of responsibilities and promotes continuity within the organization.

In summary, delegation of authority is important for efficient resource utilization, employee development, managerial focus, teamwork, and succession planning. It enables managers to leverage the skills and potential of their team members, leading to increased productivity, growth, and organizational success.

PRINCIPLES OF DELEGATION

The principles of delegation provide guidelines for effective and efficient delegation of authority within an organization. Here are some key principles of delegation:

Principle of Responsibility: According to this principle, authority and responsibility should go hand in hand. When delegating authority, managers should also delegate the corresponding responsibility for the tasks or decisions. The person to whom authority is delegated becomes responsible for the successful completion of the assigned tasks.

Principle of Authority Limitation: Managers should delegate authority within certain limits. They should define the scope and extent of authority delegated to individuals based on their competence, skills, and experience. Setting clear boundaries and limits helps in preventing misuse of authority and ensures that delegated tasks align with the individual's capabilities.

Principle of Parity of Authority and Responsibility: This principle emphasizes that the level of authority should be in proportion to the level of responsibility. The person delegated with a specific responsibility should have the necessary authority and resources to fulfill that responsibility. Imbalance between authority and responsibility can lead to inefficiencies and conflicts.

Principle of Unity of Command: This principle suggests that an individual should receive instructions and guidance from only one supervisor or manager. By maintaining a single chain of command, it helps in preventing confusion, conflicts, and the dilution of authority. It ensures clarity in reporting relationships and enhances accountability.

Principle of Absoluteness of Responsibility: Managers cannot entirely delegate their responsibility. They remain accountable for the actions and outcomes of the tasks delegated to their subordinates. Even though authority is delegated, the ultimate responsibility lies with the delegating manager. They should provide necessary guidance, support, and oversight to ensure that delegated tasks are performed effectively.

Principle of Functional Definition: Delegation should be based on the competence and specialization of individuals. Tasks should be assigned to individuals who have the necessary knowledge, skills, and expertise to perform them efficiently. Delegation should align with the strengths and capabilities of individuals to ensure effective outcomes.

Principle of Flexibility: Delegation should be flexible to accommodate changing circumstances and requirements. Managers should be open to adjusting the delegation of authority based on the evolving needs of the organization. Flexibility in delegation allows for adaptation, innovation, and responsiveness to dynamic business environments.

By following these principles of delegation, managers can ensure that authority is effectively transferred, responsibilities are appropriately assigned, and individuals are empowered to perform their tasks efficiently. Effective delegation contributes to enhanced employee engagement, productivity, and overall organizational success.

DIFFICULTIES IN DELEGATION OF AUTHORITY

Delegating authority can be challenging at times due to various difficulties that managers may face. Here are some common difficulties in delegation of authority:

Lack of Trust: Delegation requires trust between the manager and the subordinate. If there is a lack of trust, managers may hesitate to delegate authority, fearing that the subordinate may not perform the tasks as expected. Building trust through effective communication, clear expectations, and past performance can help overcome this difficulty.

Fear of Losing Control: Managers may be reluctant to delegate authority because they fear losing control over the outcomes. They may prefer to retain decision-making authority to ensure things are done their way. Overcoming this difficulty requires managers to understand the benefits of delegation, such as increased productivity, development of subordinates, and better time management.

Inadequate Training and Development: Delegation requires providing adequate training and development opportunities to subordinates. If managers do not invest in developing the skills and knowledge of their subordinates, they may feel unsure about delegating authority. Providing appropriate training and support can help subordinates handle delegated tasks effectively.

Lack of Clarity in Roles and Responsibilities: Ambiguity or confusion regarding roles and responsibilities can hinder effective delegation. If subordinates are not clear about their delegated tasks, authority boundaries, and performance expectations, they may struggle to deliver desired outcomes. Managers should provide clear instructions, define roles, and establish accountability mechanisms to overcome this difficulty.

Time Constraints: Managers often face time constraints and may find it challenging to invest time in delegating tasks and providing necessary guidance and supervision. This can result in insufficient communication, inadequate feedback, and reduced clarity. Allocating sufficient time for delegation and regular communication can help address this difficulty.

Fear of Subordinate Outshining: In some cases, managers may hesitate to delegate authority to subordinates who they perceive as more competent or skilled. They may fear that subordinates will outshine them or pose a threat to their position. Overcoming this difficulty requires a shift in mindset towards recognizing the value of developing and empowering subordinates for the benefit of the organization.

Lack of Delegation Skills: Effective delegation requires specific skills such as communication, coaching, and empowerment. Managers who lack these skills may find it challenging to delegate authority effectively. Developing delegation skills through training, mentoring, and practice can help overcome this difficulty.

Addressing these difficulties in delegation requires a proactive approach from managers. By recognizing and understanding these challenges, managers can implement strategies to overcome them and create a culture of effective delegation within the organization.

GUIDELINE/MEASURES FOR MAKING DELEGATION EFFECTIVE

To make delegation effective, managers can follow these guidelines and measures:

Clearly Define Tasks and Objectives: Clearly define the tasks and objectives to be delegated. Ensure that the subordinate understands what needs to be done, the expected outcomes, and any specific guidelines or constraints.

Select the Right Person: Select the most suitable person for the delegated task based on their skills, knowledge, and capabilities. Consider their level of competence, motivation, and willingness to take on additional responsibilities.

Provide Adequate Training and Support: Provide the necessary training, resources, and support to enable the subordinate to successfully complete the delegated task. Offer guidance, clarify doubts, and be available for assistance when needed.

Establish Clear Authority and Accountability: Clearly communicate the delegated authority and empower the subordinate to make decisions within the defined scope. Also, establish clear accountability for the outcomes of the delegated task.

Maintain Effective Communication: Maintain open and regular communication with the subordinate throughout the delegation process. Provide feedback, address concerns, and keep track of progress. Encourage the subordinate to share updates and seek guidance when necessary.

Encourage Initiative and Innovation: Encourage the subordinate to take initiative, think creatively, and find innovative solutions within the delegated task. Foster a supportive environment that values new ideas and encourages the exploration of alternative approaches.

Foster Trust and Confidence: Build trust and confidence in the subordinate by demonstrating faith in their abilities. Avoid unnecessary micromanagement and allow autonomy within the delegated task. Recognize and appreciate their efforts and contributions.

Monitor Progress and Provide Feedback: Regularly monitor the progress of the delegated task and provide constructive feedback. Offer guidance, highlight areas of improvement, and acknowledge achievements. This helps in ensuring that the task is on track and provides opportunities for learning and growth.

Review and Learn from Delegation: After the completion of the delegated task, conduct a review to evaluate the outcomes and identify any lessons learned. Assess the effectiveness of the delegation process and make improvements for future delegations.

By following these guidelines and measures, managers can effectively delegate authority, promote employee development, enhance productivity, and create a sense of empowerment within the organization.

CENTRALISATION

Centralization refers to the concentration of decision-making authority at the top levels of an organization. In a centralized organizational structure, key decisions are made by top-level managers or a central authority, while lower-level employees have limited decision-making power. Here are some key points about centralization:

Decision-Making Authority: In a centralized structure, decision-making authority is concentrated at the top levels of management. Top-level managers have the power to make important strategic and operational decisions.

Control and Coordination: Centralization allows for better control and coordination of organizational activities. Top-level managers have a clear overview of operations and can ensure consistency and alignment with organizational goals and policies.

Standardization and Efficiency: Centralization often leads to standardization of processes and procedures, which can result in increased efficiency and uniformity across the organization. Top-level managers can establish and enforce standardized practices.

Strategic Direction: Centralization allows for a unified strategic direction and the ability to implement strategic initiatives more effectively. Top-level managers can align organizational activities with the overall mission and vision of the organization.

Consistency and Compliance: Centralization facilitates consistency in decision-making and ensures compliance with regulations and policies. Top-level managers can establish and enforce rules and guidelines throughout the organization.

However, centralization also has its limitations and challenges. It can lead to slower decision-making, reduced employee autonomy, and limited responsiveness to local or specific needs. Organizations need to carefully balance centralization and decentralization based on their specific circumstances and requirements.

DECENTRALISATION

Decentralization refers to the distribution of decision-making authority to lower levels of an organization. It involves granting more autonomy and responsibility to middle and lower-level managers or individual departments. Here are some key points about decentralization:

Decision-Making Authority: In a decentralized structure, decision-making authority is dispersed across various levels or units within the organization. Lower-level managers have the power to make decisions related to their specific areas of responsibility.

Flexibility and Adaptability: Decentralization allows for greater flexibility and adaptability in responding to local or specific needs. Lower-level managers have a better understanding of local conditions and can make decisions that are more appropriate and timely.

Employee Empowerment: Decentralization empowers employees by giving them more autonomy and responsibility. It promotes a sense of ownership and motivation among employees, leading to increased job satisfaction and productivity.

Faster Decision-Making: Decentralization can result in faster decision-making as lower-level managers can make decisions without the need for approval from higher-level authorities. This enables quicker responses to customer demands and market changes.

Local Expertise and Innovation: Decentralization allows for the utilization of local expertise and encourages innovation at various levels of the organization. Lower-level managers are closer to customers, suppliers, and other stakeholders, which can foster creativity and problem-solving.

However, decentralization also presents challenges, such as the potential for inconsistent decision-making, coordination issues, and the need for effective communication and coordination mechanisms. Organizations need to strike a balance between centralization and decentralization based on factors such as organizational size, complexity, and strategic goals. A well-designed decentralized structure can promote empowerment, agility, and innovation within an organization.

IMPORTANCE OF DECENTRALISATION

Decentralization is important for organizations due to the following reasons:

Faster Decision-Making: Decentralization allows decision-making authority to be distributed across different levels of the organization. This leads to faster decision-making as lower-level managers or departments have the power to make decisions without waiting for approval from higher-level authorities. This agility enables organizations to respond quickly to market changes, customer needs, and emerging opportunities.

 

Improved Responsiveness: Decentralization enables organizations to be more responsive to local or regional needs and demands. Lower-level managers or departments have a better understanding of the specific requirements and preferences of their respective areas. By decentralizing decision-making, organizations can tailor their strategies, products, and services to better meet the needs of diverse markets or segments.

Empowerment and Motivation: Decentralization empowers employees by granting them more autonomy and responsibility. It provides them with the opportunity to make decisions and take ownership of their work. This empowerment enhances employee motivation, job satisfaction, and commitment to organizational goals. It also encourages innovation and creativity as employees feel more engaged and invested in their work.

Development of Managers: Decentralization helps in the development of managerial talent within the organization. By delegating authority and responsibility to lower-level managers, organizations provide them with opportunities to learn and grow. This fosters the development of leadership skills, decision-making capabilities, and a broader understanding of the business. It prepares managers for higher-level positions and ensures a pipeline of capable leaders within the organization.

Flexibility and Adaptability: Decentralization allows organizations to be more flexible and adaptable to changes in the business environment. When decision-making authority is dispersed, it becomes easier to adjust strategies, operations, and resource allocation in response to market fluctuations, technological advancements, and competitive pressures. This flexibility enables organizations to stay competitive and seize new opportunities in a dynamic and evolving business landscape.

Overall, decentralization can enhance organizational effectiveness, employee engagement, and the ability to navigate changing market conditions. However, it is essential to strike the right balance between centralization and decentralization, considering the specific needs and characteristics of the organization.

FACTORS DETERMINING THE DEGREE OF DECENTRALISATION

The degree of decentralization in an organization is influenced by various factors. Here are some of the key factors that determine the degree of decentralization:

Size and Complexity of the Organization: Larger and more complex organizations tend to have a higher degree of decentralization. This is because the volume and complexity of tasks require delegation of authority to lower-level managers or departments to ensure efficient and timely decision-making.

Organizational Culture: The organizational culture plays a significant role in determining the degree of decentralization. If the culture emphasizes trust, empowerment, and collaboration, it is more likely to support a higher degree of decentralization. On the other hand, a culture that values control, top-down decision-making, and strict hierarchical structures may lean towards greater centralization.

Competence and Availability of Managers: The availability of competent managers at different levels of the organization influences the degree of decentralization. If there is a pool of skilled managers capable of handling decision-making responsibilities, decentralization can be implemented effectively. However, if competent managers are scarce, centralization may be preferred to ensure better control and coordination.

Business Environment and Industry Dynamics: The nature of the business environment and industry dynamics can impact the degree of decentralization. In rapidly changing and highly competitive industries, decentralization may be favored to enable faster responses to market shifts and customer demands. Conversely, in stable and regulated industries, centralization may be preferred to ensure compliance and consistency.

Technology and Communication Infrastructure: The availability and sophistication of technology and communication infrastructure can influence the degree of decentralization. Advanced technology and robust communication systems facilitate information sharing, collaboration, and decision-making across different levels of the organization. This enables greater decentralization by ensuring effective coordination and control.

Strategic Objectives and Organizational Structure: The strategic objectives and the organizational structure play a vital role in determining the degree of decentralization. If the strategic goals require quick decision-making, innovation, and customer responsiveness, decentralization may be necessary. The organizational structure, such as the presence of autonomous divisions or geographically dispersed units, can also influence the degree of decentralization.

It's important to note that the degree of decentralization is not static and can evolve over time based on internal and external factors. Organizations need to regularly assess and adjust the level of decentralization to ensure alignment with their goals, resources, and changing business conditions.

HOW TO MAKE DECENTRALISATON EFFECTIVE

To make decentralization effective in an organization, the following guidelines or measures can be adopted:

Clearly Define Authority and Responsibility: Clearly define the authority and responsibility of each level or unit in the decentralized structure. This includes outlining decision-making powers, areas of control, and expected outcomes. Clarity helps in avoiding confusion and ensures that decentralized units understand their roles and responsibilities.

Delegate Sufficient Authority: Ensure that decentralized units have sufficient authority to make decisions and take actions within their assigned areas of responsibility. Avoid micromanagement and empower managers at different levels to exercise their decision-making powers. This promotes autonomy, initiative, and accountability.

Establish Effective Communication Channels: Establish robust communication channels to facilitate effective information sharing, coordination, and collaboration among decentralized units. This includes regular reporting mechanisms, feedback loops, and open lines of communication. Effective communication helps in aligning activities, sharing best practices, and resolving issues promptly.

Provide Training and Development: Invest in training and development programs to enhance the skills and capabilities of managers and employees in decentralized units. This ensures that they have the necessary knowledge and expertise to handle their responsibilities effectively. Training can focus on decision-making, problem-solving, leadership, and other relevant skills.

Establish Performance Evaluation Systems: Implement performance evaluation systems that measure the performance of decentralized units against predetermined goals and objectives. This helps in assessing the effectiveness of decentralization and identifying areas for improvement. Performance evaluations can be linked to rewards and recognition to incentivize decentralized units to perform well.

Foster a Culture of Trust and Collaboration: Create a culture that promotes trust, collaboration, and mutual support among decentralized units. Encourage information sharing, cross-functional teamwork, and knowledge exchange. A culture of trust and collaboration encourages innovation, creativity, and effective decision-making at all levels.

Regularly Review and Adjust Decentralization: Regularly review the effectiveness of decentralization in achieving organizational goals. Assess the strengths and weaknesses of the decentralized structure and make necessary adjustments. This may involve reallocating authority, revising reporting relationships, or modifying decision-making processes based on changing circumstances.

By following these measures, organizations can enhance the effectiveness of decentralization, promote agility and responsiveness, and tap into the potential of decentralized units to drive innovation and growth.

 

Multiple Choice Questions:

 

1. Delegation of authority refers to the process of:

a) Transferring responsibility from subordinates to superiors

b) Transferring authority from subordinates to superiors

c) Transferring power from superiors to subordinates

d) Transferring workload from superiors to subordinates

2. What is the main purpose of delegation in an organization?

a) To increase the workload of managers

b) To restrict decision-making authority of subordinates

c) To empower employees and improve efficiency

d) To create a hierarchical structure within the organization

3. In delegation, the delegator retains overall:

a) Responsibility

b) Authority

c) Accountability

d) Control

4. What is the main purpose of delegation of authority in an organization?

a) To restrict decision-making authority of subordinates

b) To enhance managerial control over tasks

c) To improve resource utilization and employee development

d) To create a hierarchical structure within the organization

 

5. Which of the following is an element of delegation?

a) Feedback and support

b) Micromanagement

c) Centralization of authority

d) Restricting communication between delegator and delegatee

6. The principle of unity of command in delegation emphasizes:

a) Delegating authority within certain limits

b) Maintaining a single chain of command

c) Assigning tasks based on competence and specialization

d) Flexibility in delegation based on changing circumstances

7. What is one of the common difficulties in delegation of authority mentioned in the paragraph?

a) Fear of losing control

b) Lack of centralization

c) Excessive training and development

d) Lack of communication skills

8. Which of the following is NOT a guideline for making delegation effective?

a) Encouraging initiative and innovation

b) Providing adequate training and support

c) Maintaining effective communication

d) Micromanaging the delegated tasks

9. What factor influences the degree of decentralization based on the size and complexity of the organization?

a) Organizational culture

b) Competence and availability of managers

c) Business environment and industry dynamics

d) Size and complexity of the organization

10. Which of the following factors does NOT determine the degree of decentralization?

a) Availability of competent managers

b) Technology and communication infrastructure

c) Strategic objectives and organizational structure

d) Centralization-based culture

 

 

True-False Questions:

1.     Delegation of authority helps in sharing workload and improving organizational efficiency. (True/False)

2.     The delegator transfers both authority and accountability to the delegatee. (True/False)

3.     Delegation promotes teamwork and collaboration within an organization. (True/False)

4.     Delegation restricts the decision-making authority to only top-level managers. (True/False)

5.     Delegation of authority does not contribute to employee development. (True/False)

6.     Delegation of authority promotes teamwork and collaboration within an organization. (True/False)

7.     The principle of responsibility states that authority should be delegated without any corresponding responsibility. (True/False)

8.     Flexibility in delegation allows for adaptation and responsiveness to dynamic business environments. (True/False)

9.     The delegatee is accountable for the outcomes and performance within the delegated authority. (True/False)

10.                        Delegation of authority restricts the development of employees' skills and knowledge. (True/False)

11.                        Lack of trust can hinder effective delegation of authority. (True/False)

12.                        Centralization allows for faster decision-making in an organization. (True/False)

13.                        Decentralization promotes employee empowerment and motivation. (True/False)

14.                        Decentralization is not important for organizations to respond to local needs and demands. (True/False)

15.                        The degree of decentralization in an organization is influenced by the competence and availability of managers. (True/False)

16.                        Advanced technology and robust communication systems can facilitate greater decentralization in an organization. (True/False)

17.                        Regularly reviewing and adjusting decentralization is not necessary for organizational effectiveness. (True/False)

18.                        The organizational culture has no impact on the degree of decentralization. (True/False)

 

VERY SHORT ANSWER QUESTIONS

 

Q.1.List the elements of delegation?

Ans. Authority, Responsibility, and Accountability.

Q.2. Can responsibility be delegated Explain with example?

Ans. Yes, responsibility can be delegated. For example, a manager can delegate the responsibility of managing a project to a team leader. The team leader then becomes responsible for overseeing the project's execution, while the manager retains overall accountability. Delegation allows for distributing workload, empowering team members, and promoting effective task management within an organization.

Q.3. Give two difference between’ authority’ and responsibility?

Ans. Definition: Authority refers to the power or right to make decisions, give orders, and enforce compliance. Responsibility, on the other hand, is the obligation or duty to perform specific tasks or roles and be accountable for the outcomes.

Nature: Authority is hierarchical and can be delegated from higher levels to lower levels in an organization. Responsibility is individual and task-oriented, assigned based on job roles and specific areas of work for which an individual is accountable.

Q.4. Why is it necessary to delegate authority (Give three reasons)?

Ans. Efficiency: Delegating authority helps to distribute decision-making and tasks, improving efficiency and timely completion of work.

Employee empowerment: Delegating authority empowers employees, fostering their growth, motivation, and engagement.

Focus on strategic tasks: Delegating authority allows managers to focus on higher-level responsibilities and strategic initiatives.

Q.5.What is the direction of accountability?

Ans. The direction of accountability is upward, meaning individuals or units are accountable to those in higher positions or authority within the organizational hierarchy.

Q.6.What do you understand by absolute responsibility?

Ans. Absolute responsibility refers to the complete and undivided accountability for a task or outcome. It implies that an individual or entity is solely responsible and cannot shift or share the responsibility with others.

Q.7.What is authority?

Ans. Authority refers to the power or right granted to an individual or entity to make decisions, give orders, and enforce obedience within a specific scope or domain. It represents the legitimate ability to exercise control, command, or influence others.

Q.8.What is the direction of authority?

Ans. The direction of authority is typically top-down or hierarchical. It flows from higher levels of an organization or individuals in positions of authority to lower levels or subordinates. In this structure, decisions and directives are communicated and implemented from the top to the bottom of the organizational hierarchy.

Q.9.Explain delegation?

Ans. Delegation is the process of assigning authority and responsibility to someone else to carry out specific tasks or make decisions on behalf of the delegator. It involves transferring certain tasks, duties, and decision-making powers from a higher level to a lower level within an organization. Delegation allows individuals or teams to take on additional responsibilities, promotes efficiency, develops skills, and fosters empowerment and accountability.

Q.10. Explain the difference between centralization and decentralization?

Ans. Centralization refers to a structure where decision-making authority is concentrated at the top of the hierarchy, resulting in limited autonomy for lower-level employees.

Decentralization involves distributing decision-making authority to lower levels, allowing for greater autonomy and flexibility in making decisions.

 

In summary, centralization restricts decision-making to the top, while decentralization delegates decision-making to lower levels of the organization.

Q.11. Explain centralization?

Ans. Centralization refers to a decision-making structure where authority and power are concentrated at the top levels of an organization. In a centralized system, important decisions are made by a few individuals or a central body, while lower-level employees have limited decision-making autonomy. This structure offers unified control and streamlined decision-making processes but may hinder innovation and responsiveness to local needs.

Q.12.Explain decentralization?

Ans. Decentralization is a decision-making structure where authority and power are dispersed to lower levels or units within an organization. It involves the delegation of decision-making responsibility, allowing for greater autonomy and flexibility. Decentralization promotes local decision-making, responsiveness, and innovation. However, it can also result in coordination difficulties and inconsistencies in decision-making across different units.

Q.13.What do you mean by delegation of authority?

Ans. Delegation of authority refers to entrusting decision-making power and responsibility to others within an organization. It involves transferring authority from higher-level positions to lower-level positions, allowing individuals to make decisions, take actions, and carry out tasks. Delegation of authority helps distribute workload, promote empowerment, and enable efficient decision-making at various levels of the organization.

SHORT ANSWER QUESTIONS

Q.1. Distinguish between delegation of authority and decentralization on the basis of concept, unmber of persons involved and objective?

Ans. Delegation of authority:

Concept: Delegation of authority refers to the process of transferring decision-making power and responsibility from one individual to another within an organization.

Number of persons involved: Delegation of authority typically involves two persons: the delegator (who delegates the authority) and the delegatee (who receives the delegated authority).

Objective: The main objective of delegation of authority is to distribute workload, empower individuals, and improve efficiency by enabling decision-making at lower levels.

Decentralization:

Concept: Decentralization refers to the systematic delegation of decision-making authority and responsibility to lower levels of an organization, away from a centralized authority.

Number of persons involved: Decentralization involves multiple persons and levels within an organization. It can include delegating authority to various managers, departments, or units.

Objective: The objective of decentralization is to foster autonomy, promote faster decision-making, encourage innovation and responsiveness, and enhance coordination and control at different levels of the organization. It aims to distribute authority and decision-making power throughout the organization.

Q.2. Why delegation of authority is considered important?

Ans. Delegation of authority is considered important for the following reasons:

Efficient workload management: Delegation allows workload to be distributed among capable individuals, preventing overburdening of a single person and ensuring tasks are completed in a timely manner.

Development of subordinates: Delegation provides opportunities for subordinates to enhance their skills, knowledge, and decision-making abilities, fostering their professional growth and career development.

Effective decision-making: Delegation allows decisions to be made at the appropriate level, closer to the point of action, enabling faster responses, increased efficiency, and better utilization of resources.

Q.3. Briefly explain how delegation of authority and decentralization of authority?

Ans. Delegation of authority: Assigning decision-making powers to lower-level individuals or departments while retaining ultimate accountability.

Decentralization of authority: Distributing decision-making powers throughout the organization by transferring authority from a central authority to various levels or units.

Q.4. Distinguish between delegation of authority and decentralization of authority?

Ans. Delegation of authority: Delegation refers to the process of transferring specific tasks and decision-making authority from a superior to a subordinate within the same organizational hierarchy. It is a more focused and specific form of transferring authority, usually on a task-by-task basis.

Decentralization of authority: Decentralization involves the broader redistribution of authority and decision-making power throughout an organization. It entails transferring authority from a central authority to various levels or units within the organization. Decentralization aims to empower and give more autonomy to lower-level managers or departments, allowing them to make decisions and take actions independently. It is a strategic approach to organizational structure and governance.

Q.5. State the principles of delegation of authority?

Ans. The principles of delegation of authority include:

1.     Authority with Responsibility

2.     Unity of Command

3.     Parity of Authority and Responsibility

4.     Absoluteness of Responsibility

5.     Scalar Principle

6.     Functional Definition

7.     Flexibility

Q.6. Distinguish between authority and responsibility on the basis of-

(a) Delegation                    (b) origin and                      (c) Direction of flow

Ans. (a) Delegation: Authority can be delegated to others, allowing them to make decisions and take actions on behalf of the person delegating the authority. Responsibility, on the other hand, cannot be delegated as it remains with the person who is ultimately accountable for the outcomes.

(b) Origin: Authority is granted by an organization or a higher-level individual to individuals or departments based on their positions and roles. Responsibility arises from the tasks and obligations assigned to individuals based on their roles and positions within the organization.

(c) Direction of Flow: Authority flows downward in a hierarchical structure, from higher-level positions to lower-level positions. Responsibility, on the other hand, flows upward as individuals are accountable to higher-level positions for the outcomes and results of their assigned tasks.

Q.7. Explain briefly the principle of authority and responsibility? 

Ans. The principle of authority states that authority should be delegated based on positions and roles within an organization. It ensures that individuals have the power to make decisions and take actions within their assigned areas of responsibility.

The principle of responsibility states that individuals are accountable for the tasks and obligations assigned to them. They are expected to fulfill their responsibilities effectively and be held accountable for the outcomes and results.

 

These principles ensure a clear hierarchy of authority and a clear understanding of roles and obligations, contributing to effective organizational functioning.

Q.8. Distinguish between authority and responsibility on the basis of-

(a) Direction or flow

(b) Delegation and

(c) Meaning

Ans. (a) On the basis of direction or flow:

Authority flows downward in an organization, from higher levels to lower levels. It is the power to give orders, make decisions, and take actions.

Responsibility flows upward in an organization, from lower levels to higher levels. It is the obligation to perform assigned tasks and be accountable for the outcomes.

(b) On the basis of delegation:

Authority can be delegated from one person to another within an organization. It involves transferring the power to make decisions and take actions.

Responsibility cannot be delegated. It remains with the individual who is ultimately accountable for the task.

(c) On the basis of meaning:

Authority refers to the power or right to give commands, enforce obedience, and make decisions.

Responsibility refers to the obligation or duty to perform assigned tasks and be accountable for the outcomes.

These distinctions highlight the different aspects and characteristics of authority and responsibility within an organizational context.

Q.9. Distinguish between delegation and decentralization of authority on the basis of purpose, parties involved and withdrawal of authority?

Ans. On the basis of purpose:

Delegation of authority: The purpose of delegation is to empower lower-level individuals or units to make decisions and take actions within their assigned tasks and responsibilities. It aims to distribute workload, enhance efficiency, and promote effective decision-making.

Decentralization of authority: The purpose of decentralization is to distribute decision-making power and authority across different levels or units of an organization. It aims to promote autonomy, facilitate quicker responses, and adapt to local needs and conditions.

On the basis of parties involved:

Delegation of authority: Delegation typically involves the transfer of authority from a higher-level individual or manager to a lower-level individual or subordinate within the same organization.

Decentralization of authority: Decentralization involves the redistribution of authority across different levels, departments, or even separate entities within an organization. It can involve the transfer of authority to semi-autonomous divisions, branches, or subsidiaries.

On the basis of withdrawal of authority:

Delegation of authority: Authority can be withdrawn or revoked by the higher-level individual who delegated it. They can reclaim the decision-making power if necessary.

Decentralization of authority: Once authority is decentralized, it may be difficult to withdraw entirely. Decentralization involves a more permanent distribution of authority, allowing lower-level units to make decisions independently.

These distinctions highlight the different aspects and implications of delegation and decentralization of authority in terms of their purpose, parties involved, and the withdrawal of authority.

Q.10. Distinguish between decentralization and delegation on the basis of nature, control need and responsibility?

Ans. On the basis of nature:

Decentralization: Decentralization refers to the distribution of authority and decision-making power across various levels or units of an organization. It involves the transfer of decision-making autonomy to lower-level entities.

Delegation: Delegation involves the transfer of specific tasks, responsibilities, and authority from a higher-level individual to a lower-level individual or subordinate within the same organization. It focuses on the assignment of specific duties and tasks.

On the basis of control need:

Decentralization: Decentralization allows for a higher degree of autonomy and decision-making authority at lower levels. It requires less direct control and supervision from higher-level management.

Delegation: Delegation still maintains a level of control and supervision from higher-level management. The authority and responsibility delegated are typically within a defined scope and subject to monitoring and oversight.

On the basis of responsibility:

Decentralization: Decentralization distributes decision-making power and responsibility to various levels or units within an organization. It involves sharing accountability and responsibility for outcomes among different entities.

Delegation: Delegation focuses on assigning specific tasks and responsibilities to individuals or subordinates. It does not necessarily involve the broader sharing of responsibility for organizational outcomes.

These distinctions highlight the differences between decentralization and delegation based on their nature, control needs, and the extent of responsibility shared among different levels or units within an organization.

Q.11. Why is delegation of authority essential but decentralization not?

Ans. Delegation of authority is essential because it allows for effective task distribution, decision-making, and empowerment of employees. It helps in improving efficiency, promoting accountability, and developing employee skills.

Decentralization, on the other hand, is not essential in all situations. It is a strategic choice that depends on factors such as the organization's size, complexity, industry dynamics, and strategic objectives. While decentralization can offer benefits such as improved responsiveness and local adaptation, it may not be suitable or necessary for every organization.

In summary, delegation of authority is generally considered essential for effective management, while decentralization is a strategic decision that depends on specific organizational needs and goals.

Q.12. How is accountability related to authority? Explain?

Ans. Accountability and authority are closely linked. Authority refers to the power and right to make decisions, take actions, and give orders, while accountability refers to the obligation to answer for the outcomes and results of those decisions and actions.

When authority is delegated to an individual or a group, they are given the responsibility to use that authority effectively and efficiently. Accountability ensures that they are held responsible for their use of authority and are answerable for the consequences of their decisions and actions.

In essence, authority and accountability go hand in hand. The exercise of authority comes with the expectation of being accountable for the results and impacts of that authority. Accountability helps ensure that authority is used responsibly, transparently, and in accordance with organizational goals and objectives.

Q.13. Delegation of authority is based on the elementary principle of division of work Explain?

Ans. Delegation of authority is based on the elementary principle of division of work because it involves dividing tasks and responsibilities among individuals or teams within an organization. By assigning specific areas of authority to different individuals, delegation ensures that work is distributed according to each person's skills, expertise, and capacity.

The division of work principle recognizes that no one person can efficiently handle all tasks and responsibilities within an organization. Delegation allows for specialization and focuses on individuals' strengths, enabling them to concentrate on their assigned areas. This division of authority ensures that tasks are handled by those with the most relevant knowledge and skills, leading to increased efficiency and productivity.

Q.14. Authority can be delegated but not responsibility Explain?

Ans. Authority can be delegated but not responsibility because authority refers to the power or right to make decisions and take actions. It can be transferred from one person to another.

Responsibility, on the other hand, is the obligation or duty to perform a task or fulfill a role. It cannot be transferred or delegated away completely. While someone with authority can assign tasks and delegate decision-making power, they remain responsible for the outcomes and are accountable for the delegated tasks.

In summary, authority can be delegated to others, but the ultimate responsibility for the tasks and outcomes remains with the person who holds the authority. They cannot fully transfer or delegate the responsibility to someone else.

Q.15. Briefly explain the elements of delegation?

Ans. The elements of delegation include:

 

Authority: It refers to the power and right given by a higher authority to a subordinate to make decisions, take actions, and carry out specific tasks.

Responsibility: It is the obligation of the subordinate to perform the assigned tasks and be accountable for the outcomes and results.

Accountability: It involves being answerable for the delegated tasks and their outcomes. The subordinate is accountable to the higher authority for the successful completion of the assigned responsibilities.

Communication: Effective communication is essential in delegation to convey instructions, expectations, and any necessary information between the higher authority and the subordinate.

Trust: Delegation requires trust between the higher authority and the subordinate. The higher authority must trust the subordinate's ability and reliability to carry out the delegated tasks effectively and responsibly.

In summary, delegation involves granting authority, assigning responsibilities, ensuring accountability, maintaining open communication, and fostering trust between the higher authority and the subordinate.

Q.16.What is mean by delegation? Describe the difficulties in the way of delegation?

Ans. Delegation refers to the process of assigning authority, responsibility, and accountability to a subordinate to carry out specific tasks or make decisions on behalf of a higher authority.

Difficulties in the way of delegation can include:

Fear of losing control: Some managers may hesitate to delegate because they fear losing control over the tasks and outcomes. They may feel more comfortable taking on all the responsibilities themselves.

 

Lack of trust: Delegation requires trust between the manager and the subordinate. If there is a lack of trust in the subordinate's abilities or commitment, the manager may be reluctant to delegate tasks.

Inadequate communication: Effective communication is crucial for successful delegation. If there is a lack of clear communication about expectations, goals, and instructions, it can lead to misunderstandings and hinder the delegation process.

Fear of mistakes or failure: Managers may be hesitant to delegate tasks because they fear that subordinates may make mistakes or fail to meet expectations. This fear of negative outcomes can discourage delegation.

Lack of skills or training: Subordinates may not possess the necessary skills or knowledge to handle delegated tasks. Inadequate training or development opportunities can hinder their ability to perform effectively.

Time and effort required: Delegation requires an initial investment of time and effort from the manager to explain tasks, provide guidance, and monitor progress. Some managers may find it challenging to allocate sufficient time for delegation.

In summary, difficulties in delegation can arise from concerns about control, trust, communication, fear of mistakes, skill gaps, and the time and effort required. Overcoming these difficulties requires building trust, improving communication, providing training, and gradually delegating responsibilities to develop subordinates' skills and confidence.

Q.17. Discuss the importance of Delegation of authority?

Ans. Delegation of authority is important because it:

1.     Enables effective task completion.

2.     Facilitates employee development.

3.     Improves managerial efficiency.

4.     Empowers and motivates employees.

5.     Promotes teamwork and collaboration.

6.     Supports succession planning and organizational resilience.

7.     Enhances decision-making.

Overall, delegation of authority contributes to organizational success and growth.

Q.18. Define Delegation How can delegation be made effective? 

Ans. Delegation is the process of transferring authority and responsibility from one person to another to accomplish a specific task or objective.

 

To make delegation effective, the following steps can be taken:

 

1.     Clearly define the task and desired outcomes.

2.     Select the right person with the necessary skills and capabilities.

3.     Provide proper training and guidance.

4.     Delegate the appropriate level of authority.

5.     Establish clear communication channels.

6.     Monitor progress and provide feedback.

7.     Encourage autonomy and decision-making.

8.     Recognize and reward successful delegation.

By following these steps, delegation can be made effective, resulting in improved productivity and development of employees.

Q.19. It helps a manager to extend his area of operation as without it his activities would be restricted to only what he himself can do?

Ans. Delegation helps a manager to extend his area of operation by allowing him to transfer tasks and responsibilities to others. This enables the manager to focus on higher-level activities and strategic decision-making, rather than being limited to what he can personally handle. Delegation expands the manager's reach and effectiveness within the organization.

Q.20.State any five points which highlight the importance of delegation of authority?

Ans. Increased Productivity: Delegation of authority allows tasks to be distributed among capable individuals, leading to increased productivity and efficiency in the organization.

Employee Empowerment: Delegation empowers employees by giving them the authority and responsibility to make decisions and take ownership of their work, which enhances job satisfaction and motivation.

Effective Time Management: Delegation allows managers to prioritize their time and focus on strategic activities, while tasks are delegated to others who are better suited to handle them, resulting in effective time management.

Skill Development: Delegation provides opportunities for employees to develop new skills and enhance their capabilities through challenging assignments and increased responsibilities.

Organizational Growth: Delegation of authority enables organizational growth by creating a pool of skilled and empowered individuals who can take on leadership roles and drive the growth and development of the organization.

Q.21. Decentralisation is a key element in effective organizing Explain with the help of any four reasons?

Ans. Faster Decision-Making: Decentralization allows for faster decision-making as authority is dispersed across various levels or units of the organization. Decisions can be made closer to the point of action, enabling quicker responses to market changes and customer needs.

Improved Flexibility and Adaptability: Decentralization promotes flexibility and adaptability in the organization. Local managers or units have the autonomy to tailor their strategies and operations to specific market conditions or customer preferences, leading to better responsiveness and agility.

 

Enhanced Employee Engagement and Motivation: Decentralization empowers employees at lower levels by involving them in decision-making and giving them a sense of ownership. This increased involvement and responsibility can enhance employee engagement, motivation, and job satisfaction.

Effective Resource Utilization: Decentralization allows for effective resource utilization by distributing decision-making authority. Local managers or units have a better understanding of their resource needs and can allocate resources efficiently based on their specific requirements, leading to optimal resource utilization.

LONG ANSWER QUESTIONS

Q.1.What is decentralization? How does decentralization differ from delegation of authority?

Ans. Decentralization is a management concept that involves the distribution of decision-making authority and power from the top level of an organization to lower levels or individual units. It aims to grant more autonomy and decision-making power to those closer to the point of action or knowledge.

Delegation of authority, on the other hand, refers to the process of assigning specific tasks, responsibilities, and decision-making authority from a superior to a subordinate within the same organization. It involves transferring authority to make decisions, but the ultimate responsibility still rests with the delegator.

The main difference between decentralization and delegation of authority is the scope and level of decision-making power involved. Decentralization involves a broader transfer of decision-making authority to lower levels or units of the organization, often resulting in semi-autonomous or independent entities. It involves redistributing power and decision-making throughout the organization.

On the other hand, delegation of authority is more focused on assigning specific tasks and decision-making authority to individuals or teams within an existing organizational structure. It is a narrower form of authority transfer, typically within the framework of a centralized or hierarchical organization.

In summary, decentralization is a broader concept that involves redistributing decision-making authority throughout the organization, while delegation of authority is a narrower process of assigning specific tasks and decision-making authority within the existing organizational structure.

Q.2.What is delegation of authority state the steps contained in its process?    

Ans. Delegation of authority is the process of assigning tasks, responsibilities, and decision-making authority from a superior to a subordinate within an organization. The steps involved in the delegation process are as follows:

Assigning the task: The delegator identifies a specific task or responsibility that needs to be delegated and selects the appropriate subordinate to whom the task will be assigned.

Granting authority: The delegator grants the necessary authority and decision-making power to the subordinate to carry out the assigned task. This includes defining the boundaries and limits of the delegated authority.

Defining expectations: The delegator communicates the expectations, objectives, and desired outcomes of the delegated task to the subordinate. This includes discussing the purpose, timelines, resources, and quality standards associated with the task.

Providing support: The delegator provides necessary support, resources, and guidance to the subordinate to ensure successful completion of the delegated task. This may involve training, mentoring, or providing access to relevant information and tools.

Monitoring and feedback: The delegator keeps track of the progress of the delegated task and provides regular feedback and guidance to the subordinate. This helps in assessing the performance, addressing any challenges or issues, and ensuring alignment with organizational goals.

Accountability and evaluation: The delegator holds the subordinate accountable for the delegated task and evaluates their performance based on the agreed-upon standards and expectations. This involves reviewing the outcomes, identifying areas for improvement, and recognizing achievements.

Review and adjustment: After completion of the delegated task, the delegator reviews the overall delegation process, assesses its effectiveness, and identifies any necessary adjustments or improvements for future delegation.

By following these steps, delegation of authority can be effectively implemented, enabling the development of subordinates, fostering teamwork, and improving overall organizational efficiency.

Q.3. A manager is of the view that he is not responsible for the quality of work that he has delegated to this subordinate do you agree with this viewpoint justify your answer by giving proper arguments?

Ans. No, I do not agree with the viewpoint that a manager is not responsible for the quality of work delegated to their subordinate. There are several arguments to support this:

Accountability: As a manager, it is the responsibility to ensure that tasks are delegated to competent individuals and that they have the necessary resources and support to successfully complete their work. The manager remains accountable for the overall outcomes and quality of the delegated tasks.

Supervisory role: Even though the manager delegates tasks, they still have a supervisory role to play. It is their duty to monitor the progress of the delegated work, provide guidance, and offer feedback and support to their subordinates. This includes ensuring that the quality standards are met and addressing any issues or concerns that may arise.

Overall responsibility: The manager is ultimately responsible for the performance and success of their team. Delegating work is a way to distribute tasks and empower subordinates, but it does not absolve the manager of their overall responsibility for the team's outcomes. The manager should actively engage in monitoring, coaching, and providing necessary resources to ensure the quality of work.

Reputation and credibility: The quality of work reflects not only on the subordinate but also on the manager and the organization as a whole. If the manager distances themselves from the quality of delegated work, it can negatively impact their reputation and credibility as a leader. Taking responsibility for the delegated work demonstrates commitment and ensures that standards are met.

In conclusion, while delegation allows managers to distribute tasks and empower their subordinates, it does not remove the manager's responsibility for the quality of work. A manager should actively engage in monitoring, providing support, and taking accountability to ensure successful outcomes and maintain their role as a responsible leader.

Q.4. If we delegate the authority we multiply it by two if the decentralize it we multiply it by many how?

Ans. When we delegate authority, we empower individuals at lower levels of the organization by granting them decision-making powers within their assigned areas of responsibility. This multiplication effect occurs because the manager transfers some of their authority to their subordinates, allowing them to make decisions and take actions independently. It is like multiplying the authority by two because both the manager and the subordinate have decision-making authority.

On the other hand, when we decentralize authority, we distribute decision-making power across multiple levels or units within the organization. Each level or unit is given a certain degree of autonomy and decision-making authority based on their specific responsibilities. This multiplication effect occurs because authority is dispersed to several individuals or units throughout the organization. It is like multiplying the authority by many because there are multiple decision-makers at different levels or units.

In summary, delegation of authority multiplies it by two as both the manager and the subordinate have decision-making authority, while decentralization of authority multiplies it by many as decision-making authority is dispersed across multiple levels or units within the organization.

Q.5. Decentralisation is different from delegation of authority Explain with the help of an examples?

Ans. Decentralization and delegation of authority are two distinct concepts in organizational management.

Decentralization refers to the distribution of decision-making power and authority across various levels or units within an organization. It involves transferring decision-making authority to lower levels, allowing greater autonomy and independence in decision-making. For example, in a decentralized retail company, each regional branch may have the authority to make decisions regarding product selection, pricing, and promotions based on the specific needs and preferences of their local market. The central headquarters may set general guidelines and strategic objectives, but the decision-making power is dispersed to the regional branches.

On the other hand, delegation of authority involves the transfer of authority and responsibility from a higher-level manager to a subordinate. It is the process of assigning tasks, granting decision-making power, and holding individuals accountable for their performance. For example, a manager in a manufacturing company may delegate the authority to make production decisions to a team leader. The team leader is given the responsibility to manage the production process, make decisions regarding production schedules, and ensure the quality of output within the parameters set by the manager.

In summary, decentralization involves distributing decision-making authority across different levels or units of an organization, while delegation of authority involves transferring authority and responsibility from a higher-level manager to a subordinate within a specific task or role.

Q.6. Why is it necessary to delegate authority in an organisation?

Ans. Delegating authority in an organization is necessary for several reasons:

 

Effective workload management: Delegation allows managers to distribute tasks and responsibilities among their subordinates. By delegating authority, managers can ensure that work is distributed evenly and that no one individual becomes overwhelmed with an excessive workload. This helps in improving productivity and preventing burnout.

Development of employees: Delegation provides opportunities for employees to develop their skills, knowledge, and expertise. By entrusting them with authority and responsibility, employees can gain valuable experience, learn new tasks, and enhance their capabilities. This fosters their professional growth and prepares them for higher-level roles in the future.

Time management and focus: Delegating authority allows managers to focus on higher-level tasks, strategic planning, and decision-making. By assigning routine or operational tasks to capable subordinates, managers can free up their time and energy to concentrate on more critical aspects of their role, such as setting goals, building relationships, and driving organizational success.

Promotes teamwork and collaboration: Delegation encourages teamwork and collaboration within the organization. When authority is delegated, it involves assigning tasks to individuals or teams, promoting cooperation, and fostering a sense of shared responsibility. This improves communication, coordination, and synergy among team members, leading to better outcomes and a more harmonious work environment.

Enhances organizational flexibility and agility: Delegation of authority enables organizations to be more flexible and responsive to changing circumstances. It empowers employees to make decisions and take appropriate actions in their areas of responsibility. This allows the organization to adapt quickly to market dynamics, customer needs, and unforeseen challenges, enabling it to stay competitive and agile in a dynamic business environment.

Overall, delegation of authority is essential for effective organizational management as it optimizes work distribution, promotes employee development, enables effective time management, fosters collaboration, and enhances organizational flexibility.

Q.7. Explain briefly the elements of delegation can responsibility be delegated Explain with examples?

Ans. The elements of delegation include:

Authority: Authority refers to the power or right to make decisions, give instructions, and take actions. It is the key element that is delegated from a manager to a subordinate. When authority is delegated, the subordinate is empowered to make decisions within the scope of their assigned responsibilities.

Responsibility: Responsibility refers to the obligation to perform a specific task or duty. While authority can be delegated, responsibility cannot be completely delegated. The manager remains ultimately responsible for the outcomes and results of the delegated tasks. However, the manager can delegate the responsibility of completing specific tasks to subordinates.

Accountability: Accountability refers to being answerable for the outcomes of delegated tasks. Even though the manager delegates authority and assigns responsibility to subordinates, they still hold the ultimate accountability for the results. The subordinate is accountable to the manager for the successful completion of the assigned tasks.

Trust: Trust is an essential element of delegation. It involves having confidence in the abilities and judgment of the subordinate to carry out delegated tasks effectively and responsibly. Trust is crucial for effective delegation as it creates a positive work environment and allows for smooth workflow and decision-making.

Regarding the question of whether responsibility can be delegated, it's important to note that while the overall responsibility for the outcome remains with the manager, specific tasks and duties can be delegated to subordinates. For example, a manager may delegate the responsibility of preparing a project report to a team member. The team member is responsible for completing the report accurately and on time, but the manager remains responsible for the final review and submission of the report.

In summary, while authority and responsibility can be delegated, the ultimate accountability for outcomes rests with the manager. Responsibility can be delegated for specific tasks, but the overall responsibility remains with the delegating authority.

Q.8.What is decentralization of authority? How is it different from delegation of authority?

Ans. Decentralization of authority is the process of distributing decision-making power and responsibilities to lower levels of an organization. It involves transferring decision-making authority from higher-level management to middle or lower-level managers or departments within the organization.

 

The key differences between decentralization and delegation of authority are:

 

Scope: Decentralization involves the broader distribution of decision-making power and responsibilities across different levels or units of the organization. It encompasses a wide range of decisions and functions. Delegation, on the other hand, focuses on the transfer of specific authority and responsibility for assigned tasks or projects.

Level of Decision-Making: Delegation typically occurs within a hierarchical structure, where a higher-level manager delegates authority to a lower-level manager or employee. It empowers individuals or teams to make decisions within their assigned tasks or roles. Decentralization, however, involves the dispersal of decision-making power across different levels or units of the organization, allowing greater autonomy and independence in decision-making.

 

Degree of Control: In delegation, the higher-level manager retains a certain level of control and oversight over the delegated tasks. The manager sets the goals, provides guidelines, and monitors progress and outcomes. In decentralization, lower-level managers or departments have a greater degree of autonomy and independence in decision-making, resulting in less direct control from higher-level management.

In summary, decentralization of authority involves the wider distribution of decision-making power and responsibilities across the organization, while delegation of authority is the transfer of specific authority and responsibility for assigned tasks or projects within the hierarchical structure. Decentralization grants more autonomy and independence to lower-level managers, while delegation is a more focused and task-specific transfer of authority.

Q.9.What is meant by delegation of authority how is it different from decentralization of authority?

Ans. Delegation of authority refers to the process of transferring decision-making power and responsibilities from a higher-level manager to a lower-level manager or employee for specific tasks or functions within an organization.

Decentralization of authority, on the other hand, involves the broader distribution of decision-making power and responsibilities across different levels or units of the organization. It involves granting more autonomy and independence to lower-level managers or departments, allowing them to make decisions within their assigned areas of responsibility.

In summary, delegation of authority is a specific and task-oriented transfer of decision-making power, while decentralization of authority is a broader approach that involves the distribution of decision-making power across different levels or units of the organization.

Q.10.The concepts of centralization and decentralization are related to the concept of delegation Explain?

Ans. The concepts of centralization, decentralization, and delegation are interrelated as they all deal with the distribution of authority and decision-making within an organization.

Delegation of authority is the process of transferring decision-making power from a higher-level manager to a lower-level manager or employee. It allows for effective task management and empowers employees to make decisions within their assigned responsibilities.

Centralization refers to the concentration of decision-making power at the top or a specific central authority within the organization. In a centralized structure, authority and decision-making are retained by a few individuals at the higher levels of the hierarchy.

Decentralization, on the other hand, involves the dispersal of decision-making power and authority to lower levels or units within the organization. It allows for greater autonomy and decision-making capabilities at the lower levels.

Centralization and decentralization are related to delegation in the sense that they determine the extent to which authority is delegated. In a centralized structure, delegation may be limited, and decision-making authority remains concentrated at the top. In a decentralized structure, delegation is more extensive, with authority being dispersed to lower levels.

Overall, delegation of authority can be influenced by the degree of centralization or decentralization in an organization. In a centralized structure, delegation may be limited, while in a decentralized structure, delegation is more prevalent as decision-making is distributed across various levels or units.

Q.11. Discuss the principle of delegation by results expected and principle of absolute responsibility?

Ans. The principle of delegation by results expected and the principle of absolute responsibility are two important principles related to the delegation of authority in an organization.

 

Principle of delegation by results expected: This principle emphasizes that authority should be delegated based on the desired outcomes or results to be achieved. Instead of focusing on specific tasks or methods, the focus is on defining the goals and objectives and granting authority to individuals or teams to achieve those results. The person or team delegated with authority is given the freedom to determine the best way to accomplish the desired outcomes.

For example, a manager may delegate the responsibility of increasing sales by 20% within a specific time frame to a sales team. The sales team is given the authority to make decisions regarding sales strategies, customer targeting, pricing, and promotions to achieve the desired sales growth.

Principle of absolute responsibility: This principle states that while authority can be delegated, responsibility cannot be transferred or delegated. It means that even when authority is given to someone, the ultimate responsibility for the outcomes or consequences of their actions lies with the person who delegated the authority.

For example, if a manager delegates the authority to make financial decisions to a finance manager, the finance manager has the authority to make financial decisions on behalf of the organization. However, the manager retains the overall responsibility for the financial performance and outcomes of those decisions.

The principle of absolute responsibility ensures that there is accountability for the results achieved through delegation. It reinforces the idea that while authority can be shared or delegated, the ultimate responsibility lies with the person in a higher position who has delegated the authority.

In summary, the principle of delegation by results expected focuses on delegating authority based on desired outcomes, while the principle of absolute responsibility emphasizes that responsibility cannot be delegated and the person delegating the authority remains ultimately accountable for the outcomes. Both principles work together to ensure effective delegation of authority while maintaining accountability within the organization.

Q.12.What are the problems in delegation of authority? How these can be overcome?

Ans. Problems in delegation of authority can include lack of trust, inadequate communication, unclear authority and responsibility, fear of subordinates' success, and lack of necessary skills. To overcome these problems:

Build trust: Foster trust by providing support, training, and guidance to subordinates.

Clear communication: Clearly communicate objectives, expectations, and guidelines for delegated tasks.

Define authority and responsibility: Clearly define the scope of authority and responsibility for each task.

Provide training and development: Offer training and development opportunities to enhance subordinates' skills.

Encourage and recognize success: Create a positive environment that encourages and recognizes successful delegation.

By addressing these problems and implementing these solutions, organizations can improve the delegation of authority and enhance overall effectiveness.

Q.13.Discuss the barriers to effective delegation?

Ans. Barriers to effective delegation can include:

Lack of trust: If there is a lack of trust between the manager and subordinates, delegation may be hindered. The manager may hesitate to delegate important tasks due to concerns about the subordinates' ability to perform.

Micromanagement: Some managers struggle to let go of control and tend to micromanage delegated tasks. This hampers the autonomy and growth of subordinates.

Inadequate communication: Poor communication can lead to misunderstandings and incomplete or incorrect task execution. Lack of clear instructions and feedback can hinder effective delegation.

Fear of losing authority: Managers may fear that delegating authority will diminish their own power or make them dispensable. This fear can prevent effective delegation and hinder the growth of subordinates.

Lack of training and support: Insufficient training and support for subordinates can lead to a lack of confidence and competence, making it difficult for them to perform delegated tasks effectively.

To overcome these barriers, managers can focus on building trust, improving communication, providing necessary training and support, and empowering subordinates to take ownership of their delegated tasks. It is important to create a culture that values and encourages effective delegation and provides the necessary resources for its success.

Q.14. Discuss various elements of delegation how is it different from decentralization?

Ans. Elements of Delegation:

Authority: Delegation involves transferring authority from a manager to a subordinate, giving them the power to make decisions and take actions.

Responsibility: Along with authority, responsibility is also delegated. The subordinate becomes accountable for the assigned tasks and their outcomes.

Accountability: The subordinate is answerable to the manager for the delegated tasks and their results. They provide updates and reports on progress.

Control: The manager retains overall control and sets guidelines and expectations for the delegated tasks. They monitor progress and provide guidance as needed.

Trust: Delegation relies on trust between the manager and subordinate. The manager trusts the subordinate to carry out the tasks effectively and responsibly.

Difference from Decentralization:

Scope: Delegation is usually limited to specific tasks or responsibilities within a department or team, while decentralization involves the broader distribution of decision-making authority across different organizational units or levels.

Decision-making power: Delegation focuses on transferring decision-making power from a higher-level manager to a lower-level subordinate. Decentralization, on the other hand, involves distributing decision-making power across multiple levels or entities within the organization.

Autonomy: Delegation allows subordinates to have some level of autonomy in decision-making within their delegated authority. Decentralization aims to grant greater autonomy to different units or departments, enabling them to make decisions independently.

Organizational structure: Delegation operates within an existing hierarchical structure, where managers delegate authority to their subordinates. Decentralization involves redefining the organizational structure by distributing decision-making power across multiple levels or units.

In summary, delegation focuses on transferring authority and responsibility within a specific department or team, while decentralization involves redistributing decision-making authority across different units or levels of the organization. Delegation is a component of decentralization, but decentralization encompasses a broader and more extensive redistribution of decision-making power.

Q.15.What do you mean by decentralization write advantages and disadvantages of decentralization?

Ans. Decentralization refers to the distribution of decision-making authority and power across various levels or units within an organization. In decentralized organizations, decision-making and operational responsibilities are delegated to lower-level managers or units, allowing them to have greater autonomy and flexibility.

 

Advantages of Decentralization:

Faster decision-making: Decentralization allows for quicker decision-making as authority is dispersed to lower levels. This reduces the need for hierarchical approvals and enables timely responses to market changes and customer demands.

Increased employee motivation and engagement: Decentralization empowers employees by giving them decision-making authority and responsibility. This can lead to higher levels of motivation, job satisfaction, and overall employee engagement.

Enhanced customer focus: Decentralization enables units or departments to be closer to customers and better understand their needs. This results in improved customer responsiveness and the ability to tailor products or services to specific market segments.

Improved innovation and creativity: Decentralized units have the freedom to experiment, innovate, and adapt to local market conditions. This fosters a culture of creativity and entrepreneurship, driving innovation within the organization.

Development of managerial skills: Decentralization provides opportunities for lower-level managers to develop their leadership and decision-making skills. They gain valuable experience in managing resources, handling challenges, and driving results.

Disadvantages of Decentralization:

Lack of coordination: Decentralization can lead to challenges in coordination and communication across different units or departments. Without proper coordination mechanisms, there is a risk of duplication of efforts, inconsistent decision-making, or conflicting strategies.

Loss of control: With decentralization, there is a potential loss of central control over decision-making and operations. This can make it difficult for top management to ensure consistency, enforce policies, or maintain organizational standards.

Potential for inefficiencies: Decentralization may result in redundant functions, resources, or systems across different units. Ineffective coordination and lack of economies of scale can lead to inefficiencies, increased costs, or reduced overall performance.

Variations in decision-making quality: Decentralized decision-making means that the quality of decisions may vary across units or managers. Without proper guidelines or monitoring, there is a risk of inconsistent decision-making or suboptimal outcomes.

Organizational alignment challenges: Decentralization requires a careful balance between autonomy and alignment with organizational goals and strategies. Ensuring that decentralized units are aligned and working towards common objectives can be a complex task.

It's important to note that the advantages and disadvantages of decentralization can vary depending on the specific context and implementation within an organization. Successful decentralization requires effective communication, coordination mechanisms, clear guidelines, and ongoing monitoring to strike the right balance between autonomy and alignment.

Q.16.What is meant by decentralization state any three points that highlight the importance of decentralization?

Ans. decision-making as authority is delegated to lower levels. This enables faster responses to market changes, customer needs, and competitive pressures. With decision-making authority closer to the point of action, organizations can adapt and respond more effectively to dynamic environments.

Improved employee motivation and engagement: Decentralization empowers employees by giving them decision-making authority and responsibility. This can lead to higher levels of employee motivation, job satisfaction, and overall engagement. Employees feel a sense of ownership and empowerment when they are involved in decision-making processes and have the opportunity to contribute their ideas and expertise.

Enhanced innovation and creativity: Decentralization fosters a culture of innovation and creativity within the organization. When decision-making authority is dispersed, lower-level managers and employees have the freedom to experiment, take risks, and explore new ideas. This promotes innovative thinking, problem-solving, and the development of new products, services, or processes. Decentralized units are often better positioned to identify and capitalize on local market opportunities and customer insights.

It's important to note that the degree of decentralization needed may vary depending on the nature of the organization, its goals, and the external environment. While decentralization offers several benefits, it should be implemented strategically and balanced with appropriate coordination mechanisms to ensure alignment with overall organizational objectives.

Q.17. Distinguish between delegation and decentralization on the basis of?

Ans. Delegation and decentralization can be distinguished on the basis of several factors. Here are a few key points of distinction:

Authority Transfer: Delegation involves the transfer of authority from a higher-level manager to a lower-level employee or subordinate. It is a process of assigning specific tasks and responsibilities to individuals. On the other hand, decentralization refers to the transfer of decision-making authority from a central authority to multiple levels or units within an organization. It involves the distribution of decision-making power across various levels.

Scope of Decision-Making: Delegation typically focuses on specific tasks or responsibilities assigned to individuals. It involves the transfer of authority to make decisions related to those specific tasks. Decentralization, on the other hand, involves broader decision-making authority across various functions, departments, or units within the organization. It encompasses a wider scope of decision-making, including strategic, operational, and administrative decisions.

 

Control and Coordination: Delegation is more focused on control and coordination within a specific role or position. The higher-level manager retains overall control and is responsible for monitoring and evaluating the delegated tasks. In contrast, decentralization aims to distribute decision-making authority to lower levels or units. It allows for greater autonomy and decision-making power at those levels, reducing the need for central control and coordination.

Objective: The objective of delegation is to effectively utilize the skills and capabilities of individual employees and promote their growth and development. It allows for specialization and efficient task completion. Decentralization, on the other hand, aims to distribute decision-making authority to improve organizational responsiveness, adaptability, and local market knowledge. It seeks to foster innovation, empower employees, and facilitate faster decision-making.

It's important to note that delegation and decentralization are not mutually exclusive concepts and can coexist in an organization. While delegation focuses on specific tasks and responsibilities, decentralization involves a broader distribution of decision-making authority across the organization. The degree of delegation and decentralization can vary depending on organizational needs, structures, and objectives.

Q.18. Authority and responsibility are two important elements in delegation of authority Explain the two?

Ans. Authority and responsibility are two key elements in the delegation of authority. Here's a brief explanation of each:

Authority: Authority refers to the power or right vested in an individual or position within an organization to make decisions, give instructions, and take actions. It is the legitimate power to direct and control others, allocate resources, and enforce organizational policies. Authority flows from higher-level positions to lower-level positions through the process of delegation. The delegation of authority allows a manager to empower subordinates with the necessary authority to carry out assigned tasks and make decisions within their designated roles. Authority provides individuals with the necessary power and control to effectively perform their delegated responsibilities.

Responsibility: Responsibility is the obligation or duty of an individual or position to perform assigned tasks, achieve objectives, and fulfill job requirements. It is the accountability for the outcomes and consequences of one's actions and decisions. In the context of delegation, responsibility is assigned along with the delegated authority. When authority is delegated, the corresponding responsibility for the outcomes and results of the delegated tasks is also transferred. This means that individuals who are delegated authority are accountable for the successful completion of their assigned responsibilities. They are expected to exercise the delegated authority in a responsible manner and deliver the desired outcomes.

In summary, authority represents the power and right to make decisions and take actions, while responsibility denotes the obligation and accountability for carrying out assigned tasks and achieving desired results. Effective delegation of authority involves a careful balance between assigning the appropriate level of authority to individuals and holding them responsible for the outcomes of their delegated tasks.

Q.19. Decentralization is an important philosophy that implies selective dispersal of authority in the light of this statement explain any four points of importance of decentralization?

Ans. Decentralization is an important philosophy that involves the selective dispersal of authority throughout an organization. Here are four points highlighting the importance of decentralization:

Improved decision-making: Decentralization allows for decision-making to be distributed among various levels of the organization, closer to where the information and expertise reside. By empowering lower-level employees with decision-making authority, organizations can benefit from faster decision-making, as well as more accurate and informed decisions. This can lead to increased efficiency, agility, and adaptability to changing circumstances.

 

Increased employee motivation and engagement: Decentralization gives employees greater autonomy and empowerment in their roles. When individuals have the authority to make decisions and take ownership of their work, they are more likely to feel motivated, engaged, and responsible for their outcomes. This can result in higher levels of job satisfaction, improved employee morale, and increased productivity.

Enhanced customer focus and responsiveness: Decentralization allows organizations to be more responsive to customer needs and preferences. When decision-making is pushed closer to the customer-facing units, such as regional branches or local teams, it enables quicker responses to customer inquiries, customization of products or services, and tailored solutions. This customer-centric approach can lead to higher customer satisfaction, loyalty, and ultimately, business growth.

Development of managerial talent: Decentralization provides opportunities for the development of managerial talent within an organization. By delegating authority to lower-level managers, organizations can groom and nurture their leadership potential. Managers at different levels get the chance to exercise decision-making authority, handle responsibilities, and develop their managerial skills. This helps in building a strong leadership pipeline and ensures the availability of capable leaders to drive organizational success.

In summary, decentralization brings benefits such as improved decision-making, increased employee motivation, enhanced customer focus, and the development of managerial talent. It promotes a more flexible and responsive organizational structure that can effectively address the challenges and demands of a dynamic business environment.

Q.20. Besides effective management and employee development delegation helps the organisation in different ways Explain any four such ways?

Ans. Besides effective management and employee development, delegation helps the organization in various ways. Here are four ways in which delegation benefits an organization:

 

Increased productivity: Delegation allows managers to distribute tasks and responsibilities among their team members. By assigning tasks to individuals who have the necessary skills and knowledge, managers can ensure that work is completed more efficiently and effectively. This leads to increased productivity and throughput within the organization.

Empowered and motivated workforce: Delegation empowers employees by giving them authority and decision-making capabilities in their assigned tasks. When employees are entrusted with responsibilities and have the freedom to make decisions, they feel more engaged and motivated. This sense of ownership and autonomy can lead to higher job satisfaction and better overall performance.

Skill development and growth: Delegation provides opportunities for employees to develop new skills and enhance their capabilities. When employees are given challenging tasks and responsibilities, they are encouraged to learn and acquire new knowledge. Delegation helps in building a skilled and versatile workforce by allowing employees to expand their competencies and grow professionally.

Improved teamwork and collaboration: Delegation encourages teamwork and collaboration within the organization. When tasks are delegated, team members need to work together, share information, and coordinate their efforts to achieve common goals. This fosters a culture of collaboration, enhances communication, and strengthens relationships among team members. It also promotes a sense of collective responsibility and encourages a supportive and cohesive work environment.

In summary, delegation helps organizations by increasing productivity, empowering and motivating the workforce, fostering skill development and growth, and promoting teamwork and collaboration. It allows for the effective utilization of resources and capabilities within the organization, leading to improved performance and organizational success.

Q.21. Delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance in the light of this statement identify and explain the essential elements of delegation?

Ans. In light of the statement that delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance, the essential elements of delegation can be identified and explained as follows:

Assignment of responsibility: Delegation involves assigning specific tasks, duties, or responsibilities to another individual or team. This includes clearly defining the scope of work, objectives, and expected outcomes. The manager or delegator determines the responsibilities that will be transferred and ensures that they are well understood by the delegate.

Granting of authority: Along with responsibility, delegation involves granting the necessary authority to the delegate to make decisions, take actions, and carry out the assigned tasks. Authority can include decision-making power, access to resources, and the ability to represent the delegator in certain situations. The level of authority delegated should align with the responsibility assigned.

Accountability for performance: Delegation establishes accountability for the performance and outcomes of the delegated tasks. The delegate becomes accountable to the delegator, the team, or the organization for fulfilling the assigned responsibilities effectively and achieving the desired results. Accountability includes being answerable for the quality, timeliness, and success of the delegated tasks.

Communication and clarity: Effective communication is a crucial element of delegation. The delegator must clearly communicate the expectations, instructions, and desired outcomes to the delegate. This includes providing relevant information, resources, and any necessary guidelines or procedures. Clear communication helps in avoiding misunderstandings and ensures that both parties are on the same page.

Monitoring and feedback: Delegation involves ongoing monitoring and feedback to ensure that the delegated tasks are being performed properly. The delegator should establish mechanisms to track progress, review the delegate's performance, and provide constructive feedback. Regular communication and feedback help in addressing any issues or challenges that may arise during the delegated tasks.

By incorporating these essential elements of delegation - assignment of responsibility, granting of authority, accountability for performance, communication and clarity, and monitoring and feedback - managers can effectively delegate tasks and responsibilities, enabling them to focus on higher-level strategic activities while empowering others to contribute to the organization's success.

 

A. One Word or One line Questions

 

 Q. 1. What is delegation of authority?

Ans. Delegation refers to such an administrative process under which the managers transfer their authority to their subordinates.

 

Q. 2. What is authority?

 Ans. Authority refers to that power of a managerial official which he uses to give orders to his subordinates and to make various decisions.

 

Q. 3. What is responsibility?

Ans. Responsibility is the duty to perform the task efficiently.

 

Q. 4. What is accountability?

Ans. Accountability implies that the subordinate must accomplish the given task with efficiency and he is responsible for the success or failure of that task.

 

Q. 5. What is centralisation?

Ans. The concentration of authority or decision making power in the hands of a single manager or a small group of managers is known as centralization.

 

 Q. 6. Name the concept which increases the work load of top management.

 Ans. Centralisation.

 

Q. 7. What is decentralisation?

 Ans. The division or dispersion of authority or decision making power in the whole of the organisation is called decentralization.

 

 B. Fill in the Blanks

 

 1.  Accountability is the obligation of a subordinate towards the superior.

2. The responsibility of a superior does not decrease with delegation.

3. Decentralisation reduces the burden of top management.

4.  Centralisation reduces the role of subordinates in the organisation.

5. Authority is generally delegated from top to bottom.

 

 C. True or False Statements

 

1. A superior can withdraw the delegated authority. True

2. Delegation improves the morale of employees. True

3. Authority flows downward. True

 4. Delegation takes place when a subordinate is given the order. False

 

D. MCQ

 

1. Degree of decentralisation in the organisation is high:

(a) When subordinates take more important decisions    

(b) When more subordinates work under a manager

(c) When no power is delegated to subordinates              

(d) All the above.

(a) When subordinates take more important decisions     

 

2. Which one of the following is not a relevant step in the process of delegation of authority?

(a) Motivation to subordinates                    (b) Punishment for wrong work

(c) Reward for proper use of authority      (d) None of these.

(b) Punishment for wrong work

 

 3. Authority flows  

(a) Downward                       (b) Upward

(c) Both ways                        (d) None of these.

(a) Downward

 

4. Centralisation is helpful in:

(a) Achieving uniformity of action                 (b) Ensuring Co-ordination

(c) Both the above                                             (d) None of the above.

(a) Achieving uniformity of action

 

 5. When decision-making power is dispersed upto lower level in the organisation, what is this situation called?

(a) Centralisation                            (b) Decentralisation

(c) Both (a) and (b)                         (d) None of these.

(b) Decentralisation

 

Two Marks Questions:

 

Q. 1. Define delegation.

Ans. Delegation refers to such an administrative process under which the managers transfer their authority to their subordinates in a well-regulated way so that the subordinates may perform their functions with independence and efficiency and hence the objectives of the organisation may be achieved.

 

Q. 2. What is meant by accountability?

Ans. The answerability of the subordinate to the superior regarding the efficient accomplishment of the given task is accountability. It originates out of the authority delegated to accomplish a given task.

 

Q. 3. Define responsibility.

Ans. Whenever a superior assigns a task to the subordinate, then it is the responsibility of the subordinate to accomplish that task with efficiency. Thus, responsibility is the duty to accomplish the assigned task. It is absolute in itself and it cannot be delegated further.

 

Q. 4. Define authority.

Ans. Authority refers to that power which an official working in organisation has by virtue of his position. It is the power to take decisions, to direct the activities of others (subordinates) and to influence their behaviour. But, authority is related to a position and not a person.

 

Q. 5. Define centralisation.

Ans. The concentration of authority or decision making power in the hands of a single manager or a small group of managers is known as centralization. Centralization limits the role of subordinates in the organisation. Centralization is useful for the small organisations. But, centralization is not suitable to large organisations.

 

Q. 6. Define decentralisation.

Ans. The division or dispersion of authority or decision making power in the whole of the organisation from top level management to the lower level management is called decentralization.

 

Four Marks Questions:

 

Q. 1. Discuss any four principles of delegation.

Ans. 1. Authority should be Commensurate with Responsibility: According to this principle, there should be balance between authority and responsibility. Authority should neither be more nor less than responsibility.

2. Principle of Absolute Responsibility: According to this principle, a superior can delegate authority only; delegation of responsibility cannot be done. The absolute or ultimate responsibility for the task rests with the superior only.

3. Principle of Unity of Command: According to this principle, a subordinate must get orders from one superior only and he should be accountable to one superior only.

4. Principle of Delegation by Results Expected: According to this principle, the authority delegated to any subordinate should be sufficient enough to achieve the desired results.

 

Q. 2. Discuss any four importance of delegation of authority.

Ans. 1. Helpful in Efficient Management: Delegation reduces the workload of the superiors. Hence, they can devote their time and energy to important functions like planning, directing and controlling etc. This ensures efficient management in the organisation.

2. Individual Development of Employees: Due to delegation of authority, the subordinates get the opportunity to perform important functions with independence. Consequently, individual development of employees takes place.

3. Basis of Organisational Framework: By determining the superior-subordinate relations, this concept determines the functional relations in the organisation. Thus, this concept lays down the basic framework of the organisation.

4. Growth and Expansion of Organisation: Due to delegation of authority in any organisation, personal and professional development of the employees takes place. By utilizing the services of such employees, any organisation can grow and expand rapidly.

 

Q. 3. Write any four features of accountability.

Ans.  (i) It can neither be distributed nor delegated.

(ii) It flows from bottom to top.

(iii) It differs from responsibility.

(iv) It has specific standards.

 

Q. 4. Write any four features of responsibility.

Ans.  (i) It flows from bottom to top.

(ii) It originates when a task is assigned.

(iii) It is absolute. It means that it cannot be delegated further.

(iv) Responsibility and authority are two sides of the same coin.

 

Q. 5. Differentiate between authority and power.

Ans.

Authority	Power
Right to order. It is used due to position in the organisation. As a person has authority due to a specific position in the organisation, so it has legitimacy. As an official rises in the official hierarchy, it	Capacity to order. It is used by the individual due to his individual qualities. It is not institutional, but personal. So, it does not have legitimacy.   It has nothing to do with organisational hierarchy.

 

 

Q. 6. Write any four barriers in the way of delegation.

Ans. (i) Over Confidence of Superior in His Own Abilities: If a superior has too much confidence in his own abilities, then delegation of authority is not possible. Such a superior thinks that only he can accomplish every task with efficiency. Hence, he does not delegate the authority.

(ii) Lack of Confidence in Subordinates: If the superior does not have confidence in the efficiency of subordinates, this also acts as a barrier in the way of delegation of authority.

(iii) Fear of Mistakes and Criticism: The subordinates are always fearful of making mistakes. Due to mistakes, there is fear of criticism also. So, due to the fear of mistakes and criticism, the subordinates fear to accept delegated authority.

(iv) Lack of Self-Confidence: Most of the subordinates lack self-confidence. So, they hesitate to accept the delegated authority.

 

Q. 7. Write any four advantages of centralization.

Ans. (i) Uniformity: Under centralization, all the decisions are made by the top level management. This brings uniformity in the actions.

(ii) Co-ordination: Under centralization, all the departments follow uniform policies. This brings appropriate co-ordination among various departments.

(iii) Economies: Centralization yields economies of scale.

(iv) Facilitates Evaluation: The comparison and evaluation of the performance of various departments can be done easily. This helps to improve efficiency.

 

Q. 8. Write any four advantages of decentralisation.

Ans. (i) Reduction in the Working Burden of Top Executives: Due to decentralization, top executives can assign routine tasks to the managers at lower levels. This reduces the working burden on the top executives.

(ii) Quick Decisions: As a consequence of decentralization, decision making power is in the hands of those managers who supervise the functioning of the organisation. Hence, whenever there is need for making a quick decision, it can be taken easily and quickly.

(iii) Suitable for Growth and Expansion of Organisation : As there is growth and expansion of the organisation, it becomes large in size. Hence, an organisation needs decentralization whenever its growth and expansion take place.

(iv) Motivation to Subordinates: As a consequence of decentralization, managers at lower levels in the organisation are given freedom to take various decisions. This increases their knowledge, experience and skill. Thus, decentralization plays an important role in motivating the subordinates.

 

Q. 9. Write any four differentiate between delegation and decentralisation.

Ans.

 

Delegation

Decentralization

Delegation is of individual nature. Under it, a superior assigns authority to a subordinate. Thus, it involves only two persons. Under it, control is in the hands of one who delegates the authority. Delegation of authority is compulsory. If the manager wants the tasks to be done by the others, then it is essential to delegate the authority. Despite delegation, final responsibility rests with the official who delegates the authority. He can delegate authority, but not responsibility.

Decentralization is collective by nature. Under it, top level managers assign authority to lower level managers. Thus, it involves the whole of the organisation. Under decentralization, top managers have less control and supervision. Decentralization is not compulsory, rather it is voluntary. It depends upon the will of the top level management.   After decentralization, responsibility is also transferred. Due to decentralization, responsibility gets transferred from top managers to departmental heads.