AUTHORITY RELATIONSHIPS:

DELEGATION AND DECENTRALIZATION

IVANI KATALROLL NO. 27

THE BUSINESS SCHOOL, UNIVERSITY OF JAMMU

BIBLIOGRAPHYWEBSITES E-BOOKS

www.mcqslearn.com Essentials of management by Harold Koontz and Heinz Weihrich

www.nptel.iitm.ac.in Principles of Management by G. R. Terry

www.managementstudyguide.com

Management: Tasks and Responsibility by Peter F Drucker

www.ncsu.edu Management Today: Principles and Practices

OBJECTIVESCLARIFYING THE PROCESS OF DELEGATION

BENEFITS OF DELEGATING

PROBLEMS IN DELEGATION

BARRIERS TO DELEGATION

DECENTRALIZATION

FACTORS INFLUENCING DECENTRALIZATION

DIFFERENCE BETWEEN DELEGATION AND DECENTRALIZATION

DELEGATION• In an organization, managers no matter how

capable they are, cannot perform all the tasks assigned to them on their own.

• They, thus, assign some of the work to their subordinates and give them authority to carry on the work and at the same time make them accountable. This process is termed as delegation.

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PRODUCTION MANAGER

EXAMPLE

PRODUCTION MANAGER

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ELEMENTS OF DELEGATION

AUTHORITY

RESPONSIBILITY

ACCOUNTABILITY

According to Louis Allen, delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance.

(i) AUTHORITY• Authority refers to the power

and right of an individual to use and allocate the resources efficiently, to take decisions and to give orders so as to achieve the objectives of an organization.

• Authority also refers to the right to take decisions inherent in a managerial position to tell people what to do and expect them to do it.

• Authority flows from top to bottom i.e. a superior has authority over his subordinate.

(ii) RESPONSIBILITY• Responsibility is the

obligation of a subordinate to complete the task assigned to him properly.

• Responsibility without adequate authority leads to discontent and dissatisfaction among employees. On the other hand, authority without responsibility may lead to misuse of authority.

• Responsibility flows from bottom to top i.e. a subordinate will always be responsible to his superior.

ASSIGNING RESPONSIBILITYEXAMINE

OBJECTIVES

DESIGNATE

ACTIVITIE

S NECESSARY TO REAC

H OBJECTIVES

DESIGN JOBS BY GROUPING

SIMILAR ACTIVITIES

MAKE

INDIVIDUALS RESPONSIBL

E FOR PERFORMING JOBS

(iii) ACCOUNTABILITY• Accountability implies

being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability.

• Delegation of authority empowers an employee to act for his superior but the superior would still be accountable for the outcome.

• If ‘A’ is given a task with sufficient authority and ‘A’ delegates this task to ‘B’ and ‘C’ and asks them to ensure that task is done well, responsibility rests with ‘B’ and ‘C’ but accountability still rests with ‘A’.

AB C

ACCOUNTABILITY

AUTHORITY AUTHORITY

RESPONSIBILITY

RESPONSIBILITY

BOSS

YOU

STAFF

RESPONSIBLE

ACCOUNTABLE

ENTRUST RESPONSIBILITY AND AUTHORITY

THREE POINTS TO BE NOTED

Authority can be delegated.

Responsibility cannot be delegated but it can be assigned.

Accountability means obligation and cannot be delegated.

PRINCIPLES OF DELEGATION• Principle of result expected- suggests that

every manager before delegating the powers to the subordinate should be able to clearly define the goals as well as results expected from them. The goals and targets should be completely and clearly defined and the standards of performance should also be notified clearly.

• For example, a marketing manager explains the salesmen regarding the units of sale to take place in a particular day, say ten units a day have to be the target sales. While a marketing manger provides these guidelines of sales, mentioning the target sales is very important so that the salesman can perform his duty efficiently with a clear set of mind.

PRINCIPLES OF DELEGATION• Principle of Parity of Authority and

Responsibility- According to this principle, the manager should keep a balance between authority and responsibility. Both of them should go hand in hand.

• According to this principle, if a subordinate is given a responsibility to perform a task, then at the same time he should be given enough independence and power to carry out that task effectively. This principle also does not provide excessive authority to the subordinate which at times can be misused by him. The authority should be given in such a way which matches the task given to him. Therefore, there should be no degree of disparity between the two.

PRINCIPLES OF DELEGATION• Principle of absolute responsibility- This

says that the authority can be delegated but responsibility cannot be delegated by managers to his subordinates which means responsibility is fixed. The manager at every level, no matter what is his authority, is always responsible to his superior for carrying out his task by delegating the powers.

• Every superior is responsible for the acts of their subordinates and are accountable to their superior therefore the superiors cannot pass the blame to the subordinates even if he has delegated certain powers to subordinates.

EXAMPLE• If the production manager has

been given a work and the machine breaks down. If repairman is not able to get repair work done, production manager will be responsible to CEO if their production is not completed.

PRINCIPLES OF DELEGATION• Principle of Authority level- This principle

suggests that a manager should exercise his authority within the jurisdiction/framework given. The manager should be forced to consult their superiors with those matters of which the authority is not given that means before a manager takes any important decision, he should make sure that he has the authority to do that on the other hand, subordinate should also not frequently go with regards to their complaints as well as suggestions to their superior if they are not asked to do. This principle emphasizes on the degree of authority and the level up to which it has to be maintained.

IMPORTANCE OF DELEGATION

Effective management

• Delegation relieve managers from heavy workload and enable them to function more efficiently.

Employee development

• Delegation of authority allows managers to develop those skills which will enable them to perform complex tasks.

Motivation of employees

• When a superior entrusts a subordinate with a task, employees feel that their superiors trust them and recognize them.

Facilitation of growth

• Delegation works as a training technique for employees because when they are assigned with authority, they have to take different decisions in different situations.

Basis of management hierarchy

• Delegation of authority creates superior subordinate relationships, which tie various positions in an organization together.

Better coordination

• Delegation helps to avoid overlapping of duties and duplication of efforts as it give a clear picture of the work being done at various levels.

IMPORTANCE OF DELEGATION

Some bosses just love having to make all the decisions so they don’t delegate their authority. But these are the people who create bottlenecks because others have to wait around for them.

PROBLEMS IN DELEGATION• WHY PEOPLE DON’T DELEGATE?

• BARRIERS FROM YOU• BARRIERS FROM YOUR TEAM MEMBERS• BARRIERS FROM SITUATION

BARRIERS FROM YOU• NOT ENOUGH TIME• One of the biggest barriers to delegation

is the perception that you do not have enough time to either adequately explain the task or teach your team member the skills necessary for a delegated task. Even though it may take you less time to complete that task now, where does that put you the next time the task must be completed? This feeling is paradoxical, because one of the main benefits of delegation is saving time.

• LOSING CONTROL• People new to delegation often feel as

though they are giving up their control. It is a little frightening to allow a team member to complete a task for which you are ultimately responsible. Communicating with those to whom you've delegated frequently to check the progress of the task can help decrease this fear and give you some sense of control.

BARRIERS FROM YOU

• NOT GETTING CREDIT• Some leaders feel that if they do not

complete the task, they will not get credit. You must learn to share credit with others. Remember, the better your team looks, the better you look.

BARRIERS FROM YOU

• LOSING TASKS YOU ENJOY• You may occasionally have to delegate

tasks that you enjoy doing. Remember, as a leader your job is to ‘think big,’ not to be bogged down in recurring tasks. Seeing others succeed because of your coaching will also be enjoyable.

BARRIERS FROM YOU

• YOU CAN DO IT BETTER• You may think that you are the only

person who can complete the job successfully. Especially because you and your team are part of a prestigious scholarship program, that is probably not true. Your teammates are highly capable!

BARRIERS FROM YOU

• DELEGATE OUT OF A JOB• Some people resist delegation because

they believe they may delegate themselves out of their job. Great! Now you can move to a higher position, or volunteer to take on more challenging tasks. Delegation improves productivity, and this will be obvious to everyone.

BARRIERS FROM YOU

• NO CONFIDENCE IN TEAM MEMBERS• Some leaders resist delegation because they don’t

have faith in their team members. If this is true of you, start by taking small risks. Early successes will encourage you to delegate more. Learn to see the potential in your team and make sure that you have adequately prepared your team members for the tasks you assign. The more prepared they are, the less worried you will be.

• You are not the only one that may be wary of delegation. Your team members may also have some anxieties of their own. Next, we describe several barriers to delegation from the members of your team.

BARRIERS FROM YOU

BARRIERS FROM YOUR TEAM MEMBERS

• NOT ENOUGH TIME• Some of your team members may feel

that they are already putting in extra time for your team’s project. This may be true, so make sure that you are fairly dividing tasks between yourself and all of your team members. If everyone feels overworked, you will have to explain that in order to get the job done, everyone needs to put forth the extra effort.

• NOT ENOUGH EXPERIENCE• Some people, especially freshmen or

young students, may recognize that they do not have enough experience for the tasks that need to be completed. Do not be impatient with them for lacking experience if they have not had the opportunity to gain it. Begin by delegating simple tasks so that they will gain confidence with their success. As their skill level increases, you will be able to confidently delegate more difficult tasks to them.

BARRIERS FROM YOUR TEAM MEMBERS

• FEAR OF FAILURE• Some of your team members may be

afraid that they will fail to accomplish the tasks you delegate. Like the committee chair of the senior retreat, give your teammates adequate support and encouragement. Explain to them that you will be monitoring their progress and giving them feedback in order to correct any mistakes before they become serious problems.

BARRIERS FROM YOUR TEAM MEMBERS

• NOT THEIR RESPONSIBILITY• In order to have a successful team,

everyone must be flexible and open to delegation. Emphasize the importance of the task and the benefits it will produce. Let them know that their strengths and skills are important to the completion of the task and the success of your team.

BARRIERS FROM YOUR TEAM MEMBERS

• FEAR OF BEING A SCAPEGOAT• Some teammates may feel that you will

try to pass the blame to them instead of accepting it yourself. Make sure that your words and actions say otherwise. Do not sacrifice your team members to save yourself if something goes wrong. This will only bring you contempt and resentment as well as an unproductive team.

BARRIERS FROM YOUR TEAM MEMBERS

• REACTIONS FROM OTHER TEAM MEMBERS• When delegating to a team member, they

may hesitate because of concerns of jealousy or confrontation from other team members. If this is the case, make sure you back up your delegation with enough authority to get the job done. Also, make sure that you are delegating tasks among your teammates fairly.

BARRIERS FROM YOUR TEAM MEMBERS

BARRIERS FROM THE SITUATION• RESOURCES

• Money is usually a concern for most organizations. If this is a problem, try to work around it. Remember to be flexible. If there is not enough money to send your class on a retreat to Hawaii, be flexible with your destination. Not getting your first choice does not make the whole task a failure.

• HIERARCHY• In some organizations, it is difficult to understand

the lines of authority and responsibility. Staff and faculty members may share responsibilities, and ultimate authority may lie with someone that is not always available. Be aware of the situation and communicate clearly so that you may work to overcome this obstacle.

Seven barriers that you may pose:

• Believing you do not have enough time. • Fear of losing control. • Fear of not getting credit. • Fear of losing tasks that you enjoy. • Thinking that you can do the task best • Fear of delegating yourself out of your

job. • Lack of confidence in your teammates.

Six barriers that your teammates may pose:

• Believing they do not have enough time.• Believing they do not have enough

experience.• Fear of failure.• Believing the job is not their responsibility.• Fear of being a scapegoat.• Fear of negative reactions from other

teammates.

And, two barriers that your situation may pose:• Lack of resources.• Lack of structure and blurred lines

of authority.

QUIZ• If you feel like you will loose control over a task

you delegate, what should you do? A. Do not delegate the task.B. Do the task with your teammate.C. Schedule regular meetings to check on their progress.D. Tell your teammate exactly what to do.

• If your organization does not have enough resources to allow a team member to complete the task, what should you do?

A. Blame them for not getting the job done.B. Give the task to someone else.C. Recognize that the task will never be

accomplished.D. Remain flexible.

QUIZ

PROBLEMS IN DELEGATION• WHY YOU SHOULD DELEGATE?

• BENEFITS FOR YOU• BENEFITS FOR YOUR TEAM MEMBERS• BENEFITS FOR YOUR TEAM

BENEFITS FOR YOU• SAVE TIME• As a leader, you must take time to think

about goals, not just activities. Let your teammates pick up the routine tasks like scheduling meetings and calling speakers. It is unwise to spend your time doing tasks that your team members are capable of completing themselves.

• ACHIEVE MORE• By not delegating, you place a heavy

burden on yourself. You may become so overwhelmed that your performance and your health suffer. Delegating routine work will relieve some of your stress and give you more time to do your job.

BENEFITS FOR YOU

• INCREASE YOUR VALUE• Delegating can help enhance your

credibility as a leader. By allowing your teammates new ways to show their responsibility, you get their respect and loyalty. Having extra time will allow you to look for more challenging tasks that can increase the value of the activities you are planning.

BENEFITS FOR YOU

BENEFITS FOR YOUR TEAM MEMBERS• DEVELOPMENT

• When you delegate you will teach your team members new skills and give them the opportunity to develop themselves and achieve their goals. This makes them more versatile and a more important part of your team.

• SELF – ESTEEM• When you give a teammate a task, it shows that

you have trust and confidence in them. Having interesting and challenging work feels good, and being trusted to complete the job raises self-esteem. Having strong self-esteem can motivate your teammates to accomplish everyone’s goals.

• JOB ENHANCEMENT• Having interesting jobs or tasks in a

team makes the work more enjoyable. When you give your teammates more responsibility and authority, they will begin to use their own initiative and their imagination. This can lead to new ideas and solutions to problems that you may not have recognized, and like the senior retreat committee, your team will feel appreciated.

BENEFITS FOR YOUR TEAM MEMBERS

BENEFITS FOR YOUR TEAM• Efficiency• Delegating tasks to your team members

ensures that all of the tasks are completed. If you as a team leader do tasks that could be accomplished by your team members, you waste both your time and theirs.

• Flexibility• When you delegate tasks to your team,

move the tasks around to different members. This will increase the skills of everyone and the flexibility of your team. This may prove important if one of your members falls ill and must be substituted with another.

• Teamwork• Delegating new tasks to team members

allows them to build contacts with others whom they do not normally work. This can lead to greater teamwork and communication networking.

• Balanced Workloads• When you delegate effectively, you can

make sure that everyone has an equal amount of work. The perceived fairness in spreading out the work will gain you respect from your team members.

BENEFITS FOR YOUR TEAM

• Aid Communication• An important part in delegation is making sure

that your teammates understand why they need to accomplish their tasks. Explaining this need gives you the chance to relate the tasks to the goals of your organization. This will help your teammates understand your team’s objectives.

• Retain Good Team Members • Delegating tasks to team members keeps them

interested and motivated, and can keep people from dropping out of your team. By demonstrating that your team uses everyone’s talents to the utmost, you will keep your team members happy.

BENEFITS FOR YOUR TEAM

QUIZ• As a team leader, it is your responsibility to:

A. Complete all tasks by yourself.B. Spend most of your time planning and

strategizing.C. Complete only the tasks you want to.D. Keep tight control over your team.

• Which of the following is NOT a benefit of delegation?

A. Saving time.B. Requiring fewer people.C. Enhancing flexibility.D. Skill development.

QUIZ

WHAT TO DELEGATE• WHAT YOU SHOULD DELEGATE• Routine Tasks• These may be tasks that need to be done

once a week, once a month, or once every time a project is completed. Before delegating these tasks, make sure that they are necessary. Unnecessary tasks should be eliminated.

• Interesting Tasks• Do not keep all of the fun tasks for

yourself. This will offend your teammates and cause them to resist the boring tasks that you give them.

• Tasks Others Could Do Better• Use your team members’ skills and abilities.

Give them the tasks that they could do better so that you can devote your time to other things. Do not compete with your team members. If they can do a task better, let them do it.

• Tasks Others Might Enjoy• If you have completed a certain task

repeatedly, you may have become bored with it. Delegate this task to a teammate if you think they would enjoy it. If a teammate volunteers for a certain task, let them have it.

• Tasks Good for Development• Delegate tasks to team members who would

benefit from the additional skill development. If you are already good at completing a certain task, let someone else have a chance to try it.

• Whole Tasks• Try to delegate whole tasks instead of

dividing them into pieces. In this way, your team members will see the development and outcome of the task and enjoy it more. This will also prevent you from having to worry about keeping the pieces together.

• Time-Consuming Tasks• If you need to spend more time planning

and strategizing, delegate your most time-consuming tasks. This will free up the time you need to do your job.

• Tasks for Which You Are Not Responsible• People often keep tasks that they enjoy

most for themselves even if the task is not their responsibility. These tasks are not the best way to spend your time and energy.

• WHAT YOU SHOULD NOT DELEGATE• Boring tasks• Crises• Ill-defined tasks• Confidential matters• Praise or reprimand• Planning the development of your team• Tasks for which you are responsible

QUIZ• Which of the following tasks should NOT be

delegated? A. An interesting task.B. One good for development.C. One involving praise.D. One a team member could do better.

TO WHOM TO DELEGATEKnow Your Objectives

• When first considering to whom you should delegate a task, you must weigh the following three objectives.

SHORT TERM VS LONG TERM GOALS• Those leaders who think only with short-term goals in

mind tend to pick the best person, but not the right person to whom to delegate.

DEADLINES• If you are up against a tight deadline, you may not have

time to delegate a task to someone who needs some training.

DEVELOPMENT• Identify tasks which are not critical or urgent, and which

can handle a few mistakes without causing serious problems. Delegate these tasks to teammates who need skill development.

Know Your Team MembersIn order to delegate effectively, you must know your

team members. Skills

• You must know your teammates abilities before knowing whether they are a good match for a delegation task. Will they need much supervision, training or support? What types of work do your teammates like and dislike? You should be able to answer these questions for each of your team members before trying to delegate.

Evaluation• Delegation often reveals your teammates

strengths and weaknesses that may not have been apparent beforehand.

Development Opportunities• Know which areas your teammates need

additional practice and expertise. Delegate tasks to those people so that they can achieve their developmental goals.

Workload• Keep track of your teammates’ workloads. If

someone truly does not have enough time to complete a task adequately, delegate that task to someone who has a lighter workload.

Resistance • You should delegate tasks even to teammates

who resist accepting them. As a leader, it is your responsibility to define tasks within a person’s abilities and encourage them to develop their skills.

QUIZ• What do you need to know about a team

member before you delegate a task to them? A. Their skills.B. Areas in which they need development.C. What the task requires.D. All of the above.

QUIZ• What is meant by “Delegate to the right

person, not the best person?” A. You should delegate to the person who will benefit

the most.B. You should delegate to the person who will do the

best job.C. You should delegate to the person who will get

the job done fastest.D. You should keep all urgent tasks to yourself.

THE PROCESS OF DELEGATION

PREPARATION• Before you actually delegate, you must first plan

the delegation process. However, until that time comes, you must spend time on the following four areas before you begin to delegate.

Make A List of Tasks and Teammates• You will need to decide which tasks you usually

do, and which tasks take up large amounts of your time. Define these tasks in terms of the outcomes you want and the deadlines you must meet. Make a list of the tasks you are going to delegate. Next, make a list of all your teammates alongside the list of delegation tasks. Now draw a line from these tasks to the teammates that would be best suited to accomplish those tasks.

Define Your Outcomes• Before you delegate a task to a teammate,

you must know the desired outcomes of the task. Perhaps you want a nationally recognized speaker to give a talk about the dangers of air pollution for an hour at your next meeting. You must tell your teammate the specific outcomes expected so that they do not get off track.

Know Supplies, Resources, and Authority Required• Once you have decided on the tasks and

your teammates, think about the supplies, resources and authority those tasks require. For example, if a speaker needs to be contacted, you must make sure that your teammate not only has their phone number, but also the contacts to get a hold of that person. If you cannot supply these resources, there is a strong chance that your teammate will fail.

Anticipate Questions • Your teammates will most likely have

questions, and may possibly resist the responsibility you give them. Anticipate these questions and resistance beforehand so that you can address them effectively.

CHOOSE A TASK Deadlines Required

• Are the deadlines far away, or do the tasks need to be completed immediately? Answers to these questions will affect which teammate you choose.

Quality of Work Needed• Think about times where your teammates

have been eager to work on certain tasks. Eager teammates often produce a high quality of work. If quality is not important, delegate to inexperienced teammates.

Development Opportunities • Tasks that are not urgent or critical should be

used for development. If one of your teammates is shy and needs to work on his or her public speaking skills, delegate a task that will give him the opportunity to work on those skills. A short presentation in front of a small group may be a good step toward overcoming the fear of speaking in front of a crowded room. Learn to spot tasks that will help your teammates’ skill development.

CHOOSE A TEAM MEMBERSKILLS

• When choosing a team member to accomplish a delegated task, you must know their skill level.

DEVELOPMENT• Try to delegate tasks to those teammates that

need the most development.

DELEGATE• Schedule a Meeting• State Desired Results• Give Clear Instructions• Involve the Team Members• Explain What, Not How• Assign Accountability• Check Progress• Collaborate on a Deadline• Get a Commitment• Let Go!

FOLLOW-UP AT MEETINGSSupport• Like the senior retreat leader, make sure your

teammates know that you support them. Be prepared to defend their actions, and give them help when it is requested. Refrain, however, from doing the job yourself. Act as a facilitator by guiding and advising them without taking over their job.

Encouragement• When the delegated task is going well, make sure

to give your teammates positive feedback. Encourage and reinforce them for a job well done.

Modification • Use feedback to modify or correct your teammate’s

progress. If you are concerned about problems or about the successful completion of the task, let them know and guide them back onto the right track.

WHEN THERE ARE PROBLEMS Get a Summary• If your teammate comes to you with a problem, listen

to them first. Then ask questions to make sure you understand what is happening or to gather more information. Do not be judgmental, and do not jump to conclusions. First strive to understand what happened and why.

Get a Solution• Next, ask your teammate for their solution. This will

keep them from dumping the task onto you. Asking for your teammate’s solution also shows that you want them to use their own initiative and problem-solving skills.

Wait• If a solution is not clear, or the outcome is extremely

important, do not make a hasty decision. Give all of the information time to sink in before examining solutions with your teammate.

Delegate Corrective Action• Once you and your teammate have decided upon

a solution, let your teammate get started on it. Let them know that you will follow-up with them on their progress, and make sure that they feel comfortable enough to return if the solution does not work, or if more troubles arise.

Guard Against ‘Reverse Delegation’• Do not let delegated tasks fall back on you. This

tells your teammates that what you delegate is easily returnable and that your decisions are not firm. If you allow your teammates to reverse delegate, they may make a habit out of accepting and then returning delegated tasks. If you see this as a potential problem, make sure to have your teammate commit again to success.

EVALUATION Constructive Criticism• When giving criticism, try to sandwich it

between praise. You may say something like: “I’m very pleased with the information that you have gathered.

Criticize the Actions, Not the Person• If you must give negative criticism, do it as soon

as possible and be sure you have all of the facts. When making criticisms, criticize your teammate’s actions, not their person.

Give Credit When It’s Due • When a task is successfully completed, give

your teammates credit. If possible, give praise in public. This not only makes your teammate proud, but also sets a standard for the other team members.

QUIZ• When delegating to a teammate, what should

you refrain from telling them? A. The desired results.B. How to achieve the results.C. Your team’s goals.D. That you will give them support.

QUIZ• When your teammate has problems with the

task, what should you NOT do? A. Listen to the problem.B. Let your teammate suggest a solution.C. Let your teammate implement the solution.D. Take back the task.

DECENTRALIZATION• In many organizations, the top management plays

an active role in taking all decisions while there are others in which this power is given to even the lower levels of management.

• Those organizations in which decision making authority lies with the top management are termed as centralized organizations whereas those in which authority is shared with lower levels are decentralized organizations.

DECENTRALIZATION MODEL

• Decentralization refers to the delegation of authority throughout all the levels of an organization.

EXAMPLE• Traffic police controls

movement of vehicles on road. He holds a lower level position in the organization yet he has a lot of authority given to him. Senior officers concentrate on ways and means to improve traffic control.

DECENTRALIZATION• An organization can never be completely

centralized or decentralized as in large organizations employees who are directly involved with certain operations tend to have more knowledge about the operations than the top management.

• It is not so important to consider whether decentralization should be adopted or not but what is important is that to what extent it should be adopted. What authority should be given to subordinates and what authority should remain reserved with superiors.

IMPORTANCE OF DECENTRALIZATION

INITIATIVE AMONG SUBORDINATES• Decentralization leads to delegation of

authorities in large amount. A person with right authority is compelled to contour plate or to do something new. This inculcates in him the ability to take the initiative.

MANAGERIAL TALENT FOR THE FUTURE• Decentralization provides the opportunity to take

decisions, adds to the knowledge and experience of managers at all levels and develops talent to bear extra responsibility in future.

QUICK DECISION MAKING• In a decentralized organization, the burden of

managerial decisions does not lie on a few individuals but it is distributed among many people with complete knowledge about their units or departments.

• This leads to quick as well as better decision making.

BETTER CONTROL• Decentralization makes it possible to evaluate

performance at each level and departments can be individually held accountable for their performances.

• Management adopts better control systems such as balance score card and management information systems.

IMPORTANCE OF DECENTRALIZATION

RELIEF TO TOP MANAGEMENT• Under decentralization, the daily managerial work is

assigned to subordinates. It leaves the top management with more time which they can devote to formulate policies and plans as well as to perform the functions of coordinating, controlling and so on.

FACILITATES GROWTH• Decentralization provides full liberty to the lower

levels of management as well as divisional or departmental heads. This allows them to make efforts in order to achieve better results and fosters a sense of competition among different departments of an organization. This leads to an increase in the productivity levels of an organization.

IMPORTANCE OF DECENTRALIZATION

DELEGATION AND DECENTRALIZATIONBASIS DELEGATION DECENTRALIZATIO

NMeaning Managers delegate

some of their function and authority to their subordinates.

Right to take decisions is shared by top management and other level of management.

Scope Scope of delegation is limited as superior delegates the powers to the subordinates on individual bases.

Scope is wide as the decision making is shared by the subordinates also.

Responsibility

Responsibility remains of the managers and cannot be delegated.

Responsibility is also delegated to subordinates.

Nature It is a routine function.

It is an important decision of an enterprise.

BASIS DELEGATION DECENTRALIZATIONFreedom of Work

Freedom is not given to the subordinates as they have to work as per the instructions of their superiors.

Freedom to work can be maintained by subordinates as they are free to take decision and to implement it.

Need on purpose

Delegation is important in all concerns whether big or small. No enterprises can work without delegation.

Decentralization becomes more important in large concerns and it depends upon the decision made by the enterprise, it is not compulsory.

Grant of Authority

The authority is granted by one individual to another.

It is a systematic act which takes place at all levels and at all functions in a concern.

Freedom of Action

Very little freedom to the subordinates.

Considerable freedom.

BASIS DELEGATION DECENTRALIZATIONGrant of Responsibility

Responsibility cannot be delegated.

Authority with responsibility is delegated to subordinates.

Significance Delegation is essential for creating the organization.

Decentralization is an optional policy at the discretion of top management.

Withdrawal Delegated authority can be taken back.

It is considered as a general policy of top management and is applicable to all departments.

Process Delegation is a process which explains superior subordinates relationship.

It is an outcome which explains relationship between top management and all other departments.

CONCLUSION• Delegation is the transfer of authority from superior

to subordinate.• Delegation has three elements: authority,

responsibility and accountability.• While authority is delegated, responsibility is

assumed, accountability is imposed.• Responsibility is derived from authority and

accountability is derived from responsibility.• Delegation helps in effective management,

employee development, motivation, growth and coordination.

• Decentralization is delegation of authority throughout the organization.

• Decentralization helps in the development of managerial talent, quick decision making, reducing burden on top management, development of initiative, growth and better control

CONCLUSION

BIBLIOGRAPHYWEBSITES E-BOOKS

www.mcqslearn.com Essentials of management by Harold Koontz and Heinz Weihrich

www.nptel.iitm.ac.in Principles of Management by G. R. Terry

www.managementstudyguide.com

Management: Tasks and Responsibility

www.ncsu.edu Management Today: Principles and Practices

•QUERIES ???