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Delegation of Authority
Learning Objectives
Concept
Principle of Absoluteness of Accountability
Elements of Delegation
Authority
Responsibility
Accountability
Comparative View: Authority; Responsibility; Accountability
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Delegation of Authority
What is Delegation?
Delegation refers to the downward transfer of authority from a superior to a subordinate.
Without delegation, his activities would be restricted to only what he himself can do.
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Delegation of Authority
What is Delegation?
Delegation refers to the downward transfer of authority from a superior to a subordinate.
Without delegation, his activities would be restricted to only what he himself can do.
Delegation helps a manager to extend his area of operations.
So every manager has to share some of his authority for effective completion of task.
It is a pre-requisite to the efficient functioning of an organisation.
o Because it enables a manager to use his time on high priority activities.
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Delegation of Authority
o It also satisfies the subordinate’s need for recognition.
o Provides subordinates with opportunities to develop and exercise initiative.
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Delegation of Authority
Principle of Absoluteness of Accountability
According to this principle delegation is not a process of abdication.
It means accountability is absolute in nature and it can never be passed or delegated.
Thus, irrespective of the extent of delegated authority, the manager shall still be accountable to the same
extent as before delegation.
Moreover, the authority granted to a subordinate can be taken back and re-delegated to another person.
Abdication
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Elements of Delegation
Delegation is the entrustment of responsibility and authority to another and the creation of
accountability for performance.
Delegation of Authority
Authority
Responsibility
Accountability
Delegation
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1. Authority
Authority refers to the right of an individual to command his subordinates and to take action within the
scope of his position.
Simply it is the right to take decisions.
Authority originates by virtue of an individual’s job position. (from the established scalar chain)
Authority flows from top to bottom;
The extent of authority is highest at the top management levels and reduces as we go down.
Authority determines the superior subordinate relationship wherein
o The superior communicates his decision to the subordinate,
o And the subordinate executes the decision as per the guidelines of the superior.
Authority is restricted by laws and the rules & regulation of the organisation.
Delegation of Authority
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2. Responsibility
Responsibility is the obligation of a subordinate to properly perform the assigned duty.
It arises from a superior–subordinate relationship
Because the subordinate is bound to perform the duty assigned to him by his superior.
Responsibility flows upwards i.e., a subordinate will always be responsible to his superior.
Authority must be at par with the assigned responsibility.
If authority granted is more than responsibility, it may lead to misuse of authority.
If responsibility assigned is more than authority it may make a person ineffective.
Delegation of Authority
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3. Accountability
Accountability implies being answerable for the final outcome.
Once authority has been delegated and responsibility accepted, one cannot deny accountability.
Accountability cannot be delegated as it is absolute in nature.
Accountability flows upwards.
It means subordinate will be accountable to a superior for satisfactory performance of work.
It is generally enforced through regular feedback on the extent of work accomplished.
The subordinate will be expected to explain the consequences of his actions or omissions.
Conclusion
It can be concluded that while authority is delegated, responsibility is assumed, accountability is imposed.
Responsibility is derived from authority and accountability is derived from responsibility.
Delegation of Authority
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Comparative View:
Authority, Responsibility and Accountability
Basis Authority Responsibility Accountability
Meaning Right to command.
Obligation to perform an assigned
task.
Answerability for outcome of
the assigned task.
Delegation Can be delegated. Cannot be entirely delegated. Cannot be delegated at all.
Origin Arises from formal position. Arises from delegated authority. Arises from responsibility.
Flow
Flows downward from
superior to subordinate.
Flows upward from subordinate
to superior.
Flows upward from subordinate
to superior responsibility
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Delegation of Authority
Concept
Delegation is downward transfer of authority from a superior to a subordinate.
Principle of Absoluteness of Accountability
Accountability cannot be delegated or transferred
Elements of Delegation
Authority : Power to take decisions
Responsibility : Obligation to complete a task
Accountability : Answerability for completion/non-completion of task
Comparative View: Authority; Responsibility; Accountability
Recap
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This presentation is the property of the author.
Thank you !!!
Session Complete Vikash Residential School
XII Business Studies
Notes de l'éditeur
Setting Objectives
It could mean an increase in sales by 20% which could be objective of the entire organisation.
While developing objective unit and employees at all levels should be involved
They must also understand how their actions contribute to achieving objectives
2. Developing premises
Forecasts can be made about the demand for a particular product, policy change, interest rates, prices of capital goods, tax rates etc.
Accurate forecasts, therefore become essential for successful plans.
Setting Objectives
It could mean an increase in sales by 20% which could be objective of the entire organisation.
While developing objective unit and employees at all levels should be involved
They must also understand how their actions contribute to achieving objectives
2. Developing premises
Forecasts can be made about the demand for a particular product, policy change, interest rates, prices of capital goods, tax rates etc.
Accurate forecasts, therefore become essential for successful plans.
Setting Objectives
It could mean an increase in sales by 20% which could be objective of the entire organisation.
While developing objective unit and employees at all levels should be involved
They must also understand how their actions contribute to achieving objectives
2. Developing premises
Forecasts can be made about the demand for a particular product, policy change, interest rates, prices of capital goods, tax rates etc.
Accurate forecasts, therefore become essential for successful plans.
Setting Objectives
It could mean an increase in sales by 20% which could be objective of the entire organisation.
While developing objective unit and employees at all levels should be involved
They must also understand how their actions contribute to achieving objectives
2. Developing premises
Forecasts can be made about the demand for a particular product, policy change, interest rates, prices of capital goods, tax rates etc.
Accurate forecasts, therefore become essential for successful plans.