Delegation and Decentralization
Delegation of Authority
Delegation is the process by which authority passes from one organizational level to another. But for delegation of authority, organizations would remain forever small. Delegation is the only solution to cope with the increasing work load of managers as the organization grows. Because of the-constraints of time and ability, a manager cannot perform all the tasks himself. Therefore, he delegates certain of the tasks to the subordinate and gets, them done.
The process of delegation has the following steps:
a) Entrustment of duties or assignment of responsibilities
b) Granting of authority:
c) Creation of accountability:
Entrustment of duties or Assignment of responsibilities
This is a crucial step in that a few important questions like what to delegate? when to delegate? whom to delegate? and how to delegate are answered. The effectiveness of delegation depends on how clearly these questions are answered. First of all, the manager has to decide the tasks to be delegated to the subordinates. For this, he must be able to distinguish between the routine and non-routine tasks, Routine and single tasks can as well be performed by the subordinates while the non-routine and very important tasks must be performed by himself.
Granting of authority:
When the subordinates are assigned certain tasks or responsibilities. it goes without saying that they need authority also to perform the tasks. Authority is required by them to make use of the resources of the organization in the execution of the tasks. The superior therefore, parts with his authority to enable the subordinate to perform. Responsibility and authority both go together. One of the Important principle of organizing - parity of authority and responsibility emphasizes the need for a proper balance between the two.
Creation of accountability:
Delegation does not end with just entrusting of duties and the granting of authority. The