1. D E L E G AT I O N O F A U T H O R I T Y
A N D D E C E N T R A L I S AT I O N

3. DELEGATION OF AUTHORITY
 A manager alone cannot perform all the tasks assigned to him.
 In order to meet the targets, the manager should delegate authority.
 Delegation of Authority means division of authority and power downwards to the
subordinate.
 Delegation is about entrusting someone else to do parts of your job.
 Delegation of authority can be defined as subdivision and sub allocation of powers to
the subordinates in order to achieve effective results.

4. DEFINITION OF DELEGATION
According to Louis A Allen “Delegation is the dynamics of management. It is the
process a manager follows in dividing the work assigned to him so that he performs
that part which only he can, due to his position and he can effectively get the other
work done from others.”

5. ELEMENTS OF DELEGATION AUTHORITY
 Responsibility:
(i) Responsibility can be assigned to some other person.
(ii) The essence of responsibility is to be dutiful.
(iii) It gets originated because of superior-subordinate relationship.
 Authority:
(i) Authority can be assigned (delegated) to some other person.
(ii) It is related to the post (with the change of post, even authorities
change).
(iii) It makes implementation of decisions possible.
(iv) Authority is the key to a managerial job, because a post without
authority cannot be a managerial post.
 Accountability:
(i) Accountability cannot be delegated to some other person.
(ii) It is only towards the delegators.

6. SIGNIFICANCE OF DELEGATION AUTHORITY
 Multi Tasking:
(i) A manager is able to divide the work and allocated it to the
subordinates.
(ii) This helps in reducing his work load so that he can work on
important areas such as planning, business analysis etc.
(iii) With the reduction of load on superior, he can concentrate his
energy on important and critical issues of concern.
 Speedy Decision:
(i) Delegation of authority in a way gives enough room and space to
the superiors.
(ii) This speed up the process of decision making.
 Better Coordination:
(i)Delegation help manager and subordinates to establish close
relationship with each other.
(ii) In turn, helps in effective coordination at all levels ofmanagement.

7.  Increase employee morale:
(i) Delegation also helps in breaking the monotony of the subordinates so that
they can be more creative and efficient.
(ii) Through delegating powers, the subordinates get a feeling of importance.
(iii) Thereby, his morale and self confidence is increased.
 Developing managerial trait:
The manager get enough time trough delegation to concentrate on important
issues, their decision making gets strong and in a way they can flourish the
talents which are required in a manager.
 Expansion of business:
(i) With effective results, a concern can think of creating more
departments and division flow working.
(ii) This will require creation of more managers which can be fulfilled by shifting
the experienced, skilled managers to these positions.

8. LIMITATION OF DELEGATION
 Lack of ability to plan & direct.
 Lack of willingness to share and let go.
 Lack of trust on subordinates.
 Lack of control.
 Lack of self confidence.
 Fear for victim of criticism.
 Dependability on decision.
 Not accept delegation.

10. PRINCIPLES OF DELEGATION OF AUTHORITY
 Principle of Functional Definition:
An organization is comprised of different functional
departments, each contributing to the organizational goals and, in turn, have
their specific objectives. Thus, clearly defined objectives of each department,
the expected results, the specific activities to be performed and
intradepartmental relationships help the manager to determine the
requirements of that specific position.
 Principle of Result Expected:
Before actually delegating the authority to the
subordinate, the manager must know the purpose of such delegation and the
results expected from it. The goals, targets and the standard of performance
must be clearly defined to direct the actions of the subordinate towards the
accomplishment of a given task in a required manner. This principle helps in
determining the authority to be delegated which is sufficient for completing
the responsibility.

11.  Principle of Parity of Authority and Responsibility:
This principle states that the responsibility and the authority co-exists.
This means, if the subordinate is assigned certain responsibility, he must be given some
level of authority i.e. power to perform his responsibility. Thus, both the responsibility
and the authority shall be clearly defined to the subordinate, so that he knows what he is
required to do within the powers delegated to him.
 Principle of Unity of Command:
According to this principle, every subordinate should have a single
supervisor from whom he gets the authority and to whom he is solely accountable.
This means the subordinate should get the instructions from a single superior and
perform those responsibilities as assigned by him. In case, if the subordinate is
required to report to more than one boss, then there may be a conflict and delay in the
managerial operations.

12.  Principle of Absoluteness of Responsibility:
This principle asserts that responsibility cannot be delegated. This means even
after delegating the authority to the subordinate to perform certain tasks on the manager’s
behalf; the manager will be solely responsible for the doings of the subordinate. In other
words, whatever actions being taken by the subordinate, the manager will be accountable to his
senior. Thus, the responsibility is absolute and remains with the superior.
 The Scalar Principle:
There are clear lines of authority in the organization, i.e. who is under whom.
This helps the subordinate to know, who delegates the authority to him and to whom he shall
be accountable. Also to whom he shall contact in case things are beyond his control. Thus, this
principle asserts, that there should be a proper hierarchy in the organization.
 Principle of Exception:
According to this principle, the subordinate shall be given complete freedom
to perform his responsibilities under the purview of his authority. The manager should not
interfere in between his work and must allow him to do even if he commits mistakes. But in
some exceptional cases, the managers can interfere and even withdraw the authority delegated
to the subordinate

14. DECENTRALIZATION
 Decentralization refers to a specific form of organizational structure where the
top management delegates decision-making responsibilities and daily operations to middle and
lower subordinates.
 The top management can thus concentrate on taking major decisions with greater time
abundance.
 Business houses often feel the requirement of decentralization to continue efficiency in their
operation.

15. DEFINITION
 According to KOONTZ and O’DONNELL “Decentralization is the systematic
effort to delegate to the lowest levels all authority expect that can be exercised at a
central point.”
 According to Louis Allen, "decentralisation refers to the systematic effort to
delegate to the lowest levels all authority except that which can only be exercised at
central point."

16. IMPORTANCE OF DECENTRALIZATION
 Decentralization helps to improve the quality of decisions/decision-making at the
top level management .
 Decentralization facilitates diversification of activities
 Decentralization encourages development of managerial personnel
 Decentralization improves motivation
 Decentralization makes decision-making quicker and better
 Decentralization provides opportunity to learn by doing

17. LIMITATIONS OF DECENTRALIZATION
 Decentralization may lead to the problem of co-ordination at the level of an enterprise as the
decision-making authority is not concentrated.
 Decentralization may lead to inconsistencies (i.e. absence of uniformity) at the Organization
level. For example, uniform policies or procedures may not be followed for the same type of
work in different divisions.
 Decentralization is costly as it raises administrative expenses on account of requirement of
trained personnel to accept authority at lower levels. Even the services of such highly paid
manpower may not be utilized fully, particularly in small organizations.
 Introduction of decentralization may be difficult or may not be practicable in small concerns
where product lines are not broad enough for the creation of autonomous units for
administrative purposes.
 Decentralization creates special problems particularly when the enterprise is facing number of
uncertainties or emergency situations. The decision-making process gets delayed and even
correct decisions as per the changing situations may not be possible.

18. THANKYOU !
Done by,
BUELA BLESSY A
PRIYAVARSHINI AG
Ist MBA(TTM)