Delegation of Authority their characteristics, process and Centralization and decentralization of powers

 Delegation of Authority 

Delegation is the act of assigning formal authority and responsibility for completion of specific activities to a subordinate.

 Delegation has three elements authority, responsibility and accountability.

 Delegation of authority is “the process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organisational placement, can perform effectively and so that he can get others to help with what remains.” 

The delegation of authority by superiors to subordinates is obviously necessary for the efficient functioning of any organisation, since no superior can personally accomplish or completely supervise all organisations. Now the questions are how can authority be delegated and responsibility be delegated? A clear line of authority is the basis for all delegation.

Characteristics of Delegation of Authority:

 1. Delegation takes place when a superior grants some discretion to a subordinate. the subordinate must act within the limits prescribed by the superior. He is not free to use authority arbitrarily but has to use it subject to the policies and rules of the organisation.

 2. A manager cannot delegate the entire authority to his subordinates because if he delegates all his authority he passes his position to the subordinates. 

3. Generally authority regarding routine decisions and for execution of policies is delegated to subordinates. A manager retains the authority to take policy decisions and to exercise control over the activities of subordinates. 

4. The extent of authority which is delegated depends upon several factors, e.g., the ability philosophy of management, the confidence of the superior in his subordinates, etc. 

5. Delegation does not imply reduction in the authority of a manager. a superior retains authority even after delegation. Delegation does not mean a manager loses control and power. He can reduce, enhance or take back the delegated authority. 

6. Delegation may be specific or general, written or implied, formal or informal.

7. Delegation does not mean abdication of responsibility. No manager can escape from his obligation by delegating authority to subordinates. Therefore, he must provide a means of checking upon the work that is done for him to ensure that it is done as he desires. 

Steps in the Process of Delegation The process of delegation involves the following steps: 

1. Determination of results expected–

 First of all, a manager has to define the results he wants to obtain from his subordinates for achievement of organisational objectives. 

2. Assignment of duties– 

The manager then assigns specific duties or tasks to each subordinate. He must clearly define the function of each subordinate. While assigning duties and responsibilities, he must ensure that the subordinates understand and accept their duties. duties should be assigned according to the qualifications, experience and aptitude of the subordinates.

 3. Granting of authority– 

Assignment of duties is meaningless unless adequate authority is given to subordinates. They cannot discharge their responsibilities without adequate authority. Enough authority must be granted so that subordinates can perform their duties. By granting authority, subordinates are permitted to use resources, to take decisions and to exercise discretion.

 4. Creating accountability for performance– 

the subordinates to whom authority is delegated must be made answerable for the proper performance of assigned duties and for the exercise of the delegated authority. the extent of accountability depends upon the extent of delegation of authority and responsibility. a person cannot be held answerable for the acts not assigned to him by his superior. An information and control system is established to check and evaluate performance of the subordinates to whom authority is delegated. 

 Thus, duty, authority and accountability are three fundamental components of delegation. all the three phases of delegation are interdependent. ‘These three inevitable attributes of delegation are like a three-legged stool each depends on the others to support the whole and no two can standalone.” 

Difficulties in Delegation

 On the part of Delegator (Non-delegation) – managers are often reluctant to delegate adequate authority due to the following reasons: 

1. Some managers may not delegate authority because of their lure for authority. They are autocrats and think that delegation will lead to reduction of their influence in the organisation. They want to make their presence felt and desire that subordinates should come frequently for approval. They like to dominate the whole show. 

2. Some managers feel that none can do the job as well as they can do. They think that if they delegate, work will not be done as it ought to be done. They consider themselves indispensable and do not want to give other people’s ideas, a chance. 

3. When a manager is incompetent his work methods and procedures are likely to be faulty. He keeps all the authority to himself for fear of being exposed. He is afraid that if he lets the subordinates make decisions they may outshine him. He is afraid of losing his importance. 

4. Few managers are inclined to accept the risk of wrong decisions which the subordinates might take. Therefore, they do not delegate authority and take all the decisions themselves. They are unwilling to take calculated risk. 

5. A manager may not delegate authority because his feels that his subordinates are not capable and reliable. He lacks confidence in his subordinates.

 6. A manager is not likely to delegate authority when he cannot issue suitable directions to guide the activities of subordinates. Such lack of ability to direct indicates that he is unfamiliar with the art of delegation. 

 On the part of Subordinates (Non-acceptance of Delegation) 

– subordinates may not like to accept delegation and shoulder responsibility due to the following reasons: 

1. Subordinates may be reluctant to accept delegation when they lack self-confidence. 

2. Some subordinates are unwilling to accept authority due to the desire to play safe by depending on the boss for all decisions. They have a love for spoon-feeding.(just like you guys notes bhi khud se nhi bnaaye jaate ushke liye bhi mujhe laga rakha hai)

 3. A subordinate who is afraid of committing mistakes and does not like to be criticized by the boss is likely to avoid delegation of authority. 

4. When the subordinates are already overburdened with duties, they do not like additional responsibility through delegation. 

5. Subordinates are likely to avoid delegation when adequate information, working facilities and resources are not available for proper discharge of duties.

 6. Subordinates may not come forward to accept delegation of authority when no incentives are available to them. 

Effective Delegation 

Delegation of authority cannot be effective unless certain principles are followed in practice. While delegating, a manager should observe the following principles: 

1. Functional definition– Before delegating authority a manager should define clearly the functions to be performed by subordinates. The objectives of each job, the activities involved in it and its relationship with other jobs should be defined. (DHANG SE KAAM SAMJHAO USHE)

2. Delegation by results expected– Authority should be delegated only after the results to be achieved by the subordinates are decided. This will enable them to know by what standards their performance will be judged. 

3. Parity of authority and responsibility– There must be a proper balance between authority and responsibility of a subordinate. Responsibility without authority will make a subordinate ineffective as he cannot discharge his duties. Similarly, authority without responsibility will make the subordinate irresponsible. Therefore, authority and responsibility should be co-extensive. 

4. Absoluteness of responsibility– Responsibility cannot be delegated. No manager can avoid his responsibility by delegating his authority to subordinates. after delegating authority he remains accountable for the activities of his subordinates. Similarly, the subordinates remain accountable to their superior for the performance of assigned duties. 

5. Unity of command– At one time a subordinate should receive command and be accountable to only one superior. If a person reports to two superiors for the same job, confusion and conflict will arise. He may receive conflicting orders and his loyally will be divided. Therefore, dual subordination should be avoided. 

6. Well-defined limits of authority– The limits of authority of each subordinate should be clearly defined. This will avoid overlapping of authority and will allow the subordinate to exercise initiative. He should refer those matters to the superior which are outside the limits of his authority.

 7. Authority level principle– Managers at each level should make all decisions within their jurisdiction. They should avoid the temptation to refer to their superiors’ decisions which they are authorized to take themselves. Only matters outside the scope of authority should be referred to superiors.

Centralization and Decentralization of Authority 

Centralisation and decentralisation are opposite terms. They refer to the location of decision- making authority in an organisation.

 Centralisation implies the concentration of authority at the top level of the organisation while decentralisation means dispersal of authority throughout the organisation.

 According to Allen, “Centralisation is systematic and consistent reservation of authority at central points within an organisation. Decentralisation applies to the systematic delegation of authority in an organisation wide context.” 

Decentralisation refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points. It is the distribution of authority throughout organisation.

 Centralisation and decentralisation are relative terms because every organisation structure contains both the features. There cannot be complete centralisation or decentralisation in practice. Absolute centralisation means each and every decision is to be taken by top management which is not practicable. Similarly, absolute decentralisation implies no control over the activities of subordinates which cannot be possible. Therefore, effective decentralisation requires a proper balance between dispersal of authority among lower levels and adequate control over them. 

Distinction between Delegation and Decentralisation 

Decentralisation is much more than delegation. Delegation means transfer of authority from one individual to another. But decentralisation implies diffusion of authority throughout the organisation.

 The main points of distinction between delegation and decentralisation are presented as follows:

 1. Delegation is the process of devolution of authority whereas decentralisation is the end result which is achieved when delegation is systematically repeated up to the lowest level. 

2. Delegation can take place from one individual (superior) to another (subordinate) and -be a complete process. But decentralisation is completed only when the fullest possible delegation is made at all levels of organisation.

 3. In delegation control rests entirely with the superior. But in decentralisation the top management exercises only overall control and delegates the authority for day today control to the departmental managers. 

4. Delegation is a must for management as subordinates must be given sufficient authority to perform their duties. But decentralisation is optional in the sense that top management may or may not disperse authority. 

5. Delegation is a technique of management used to get things done through others. However, decentralisation is both a philosophy of management and a technique. 

Advantages of Decentralisation

 The main benefits of decentralisation are as follows:

 1. Relief to top executives– Decentralisation helps in reduction of the workload of top executives. They can devote greater time and attention to important policy matters by decentralising authority for routine operational decisions. 

2. Motivation of subordinates– Decentralisation helps to improve the job satisfaction and morale of lower level managers by satisfying their needs for independence, participation and status. It also fosters team—spirit and group cohesiveness among the subordinates. 

3. Quick decisions– Under decentralisation authority to make decisions are placed in the hands of those who are responsible for executing the decisions. as a result, more accurate and faster decisions can be taken as the subordinates are well aware of the realities of the situation. This avoids red tapism and delays.

 4. Growth and diversification– Decentralisation facilitates the growth and diversification of the enterprise. Each product division is given sufficient autonomy for innovations and creativity. The top management can extend leadership over a giant enterprise. A sense of competition can be created among different divisions or departments. 

5. Executive development– When authority is decentralised, subordinates get the opportunity of exercising their own judgment. They learn how to decide and develop managerial skills. As a result, the problem of succession is overcome and the continuity and growth of the organisation are ensured. There is better utilisation of lowerlevel executives. 

6. Effective communication– Under decentralisation, the span of management is wider and there are fewer hierarchical levels of organisation. Therefore, communication system becomes more effective. Intimate relationships between superiors and subordinates can be developed. 

7. Efficient supervision and control– Managers at lower levels have adequate authority to make changes in work assignments, to change production schedules, to recommend promotions and to take disciplinary actions. Therefore, more effective supervision can be exercised. Control can be made effective by evaluating the performance of each decentralised unit in the light of clear and predetermined standards. Decentralisation facilitates management by objectives and self-control.

Disadvantages of Decentralisation 

Decentralisation suffers from the following limitations: 

1. Expensive– Decentralisation increases the administrative expenses. Each division or department has to be self-sufficient in terms of physical facilities and trained personnel. There may be duplication of functions and underutilization of facilities. Therefore, a decentralised set-up is better suited to large enterprises.

 2. Difficulty in co-ordination– Under decentralisation, each department or division enjoys substantial autonomy. Therefore, coordination among the departments becomes more difficult. 

3. Lack of uniformity– decentralisation may lead to inconsistencies when uniform procedures are not followed by various departments. Each department may formulate its own policies and procedures. 

4. External constraints– decentralisation may not be possible due to external factors like market uncertainties, trade union movement, government intervention, etc.