1. Delegation of Authority
& Decentralization

2. • A manager alone cannot perform all the tasks assigned to
him… should delegate authority.
Definition:
• Subdivision and sub-allocation of powers to the
subordinates in order to achieve effective results.

3. Elements of Delegation
1. Authority –
 The power and right of a person to use and allocate
the resources efficiently, to take decisions and to give
orders so as to achieve the organizational objectives.
 Authority is the right to give commands, orders and get
the things done.

4. 2. Responsibility –
 The duty of the person to complete the task assigned
to him.
 Responsibility without adequate authority leads to
discontent and dissatisfaction among the person.

5. 3. Accountability –
 Being answerable for the end result. Accountability can
not be delegated.
 It arises from responsibility.

6. Significance of Delegation
 Muti Tasking:
 Speedy Decision:
 Better Coordination:

7.  Increase Employee morale:
 Developing managerial trait:
 Expansion of business :

8. Limitation of delegation
On the part of supervisors:
 Lack of ability to plan & direct
 Lack of willingness to share and let go
 Lack of trust on subordinates
 Lack of control

9. Limitation of delegation
On the part of Subordinates
 Lack of self confidence
 Fear for victim of criticism
 Dependability on decision
 Not accept delegation

10. Principles of Delegation of Authority
 Principle of result excepted-
 Principle of Parity of Authority and Responsibility-
 Principle of absolute responsibility-

11.  Principle of Authority level-
This principle suggests that a manager should exercise his authority
within the jurisdiction / framework given.
 Effective communication-
Superior should give clear instruction and delegation and
subordinates to take assistance and guidance from seniors.

12.  Decentralization
• In a decentralization concern, authority is retained by the
top management for taking major decisions and framing
policies concerning the whole concern.

13. Advantages of Decentralization
 Relieves top management from work load
 Motivates the lower level employees, as it make their job
more attractive and interesting.
 Encourages lower level employee to take initiatives.
 Realistic decision

14. Disadvantages of Decentralization
 Hampers uniformity in decision making.
 Increases the administrative cost due to duplication of work
 Difficult for top management to exercise control.