Organizing

2.6 DELEGATION
Assigning

responsibility and authority to

subordinates by an executive.

It

is not an easy task. It suffers from various

managerial and subordinate obstacles.

Managerial Obstacles
i.

Managers may have poor confidence in individuals who work for

them.

ii.

Ultimately the executives are responsible for the tasks performed by

their subordinates; therefore, managers may be wary of risk.

iii.

Managers may have false beliefs that they can do a better job than
their subordinates. Therefore they may feel that this is their duty to
perform such task themselves.

iv.

Lack of appropriate control measures to make management aware of

impending difficulty.

v.

Lack of ability to direct.

Subordinates Obstacles
i.

Lack of adequate facilities to accomplish the job properly

ii.

Lack of self-confidence

iii.

Subordinates reluctance to sort out the problem by himself or

herself because he or she finds it easier to obtain the help of the
superior

iv.

No worthy incentives for subordinates extra responsibility

v.

Fear of mistakes. The subordinate believes that more responsibility

will lead to an increase in the probability of making mistakes.

vi.

Subordinates heavy work load which may already be outside his or

her limits

Useful Guidelines to Delegate Authority

Effectively
i.

Aim for the total understanding of the subordinate on the

following points:
i.

What is being delegated to him or her

ii.

His or her authority

iii.

Procedure to be used to review his or her work

iv.

The way he or she will get rewarded for his or her

effort

ii. Decompose the job in question into various separate tasks.

iii. The superior should be aware of the fact that he or she can delegate
authority but not responsibility. After all, a manager is accountable
for his or her subordinates action.
iv. Select only those subordinates whose qualifications are matched with
the tasks to be performed.
v. The manager should make certain that individuals have been given
adequate
authority to perform their tasks effectively.
vi. For each task to be performed, outline the responsibility standards.
vii. Set up such standards for control which are clearly understood by
subordinate.
viii. Periodically monitor the progress made.

Centralization and Decentralization of

Organizations

In Centralized organization the upper management has the

authority to make the critical decisions.

On the other hand, in the decentralized organizations the

authority is distributed to lower levels of the management
ladder.

Determining Factors for the

Decentralization of Authority

Thinking philosophy of management

Availability of properly trained managers which are needed to make

decentralized decisions

Availability of control techniques which help to monitor decisions made at the

lower levels

Influences from external forces such as income tax policies, unions and
governmental controls

Dynamic nature of business

Policy uniformity and costs of decisions

Size and History of the company

Desire of individuals and groups for independence

Benefits of Centralization

Helps reduced the number of undesirable decisions by less experience

executives.

Helps to reduce the need of experienced subordinate managers as they may

be required in the case of a decentralized organization.

Helps to reduce the cost of staffing because fewer competent managers can
handle the jobs and the requirement of staff.

Helps to bring important decision makers close to each other, which in turn
simplifies the coordination of their efforts.

Helps to eliminate duplication of work.

Helps to improved control over specialized functions.

Helps to make centralized staff expertise more efficient and simpler to use.

Benefits of Decentralization

Helps ensure that the decisions are made by those managers who have the
best experience of local conditions which are important for such decisions

Helps to make the overall organization stronger by facilitating the personal

development of individuals

Helps to stimulate initiative and identification with the enterprise.

Helps in creating better feelings of satisfaction among competent individuals

relative to centralization.