This document discusses delegation of authority and decentralization. It defines delegation as assigning work to others with adequate decision-making authority. Delegation provides advantages like saving time and developing subordinates. Effective delegation requires determining what to delegate, clear communication, and accountability. Decentralization means different sections perform activities independently within a department, providing benefits like efficiency but risks like duplicate work. Both delegation and decentralization involve distributing authority throughout an organization.

1. Welingkar’s Distance Learning Division
CHAPTER-08
DELEGATION OF AUTHORITY &
DECENTRALISATION
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2. Welingkar’s Distance Learning Division
Introduction
• Authority is the power to make decisions
which guide the actions of others. Delegation
of authority contributes to the creation of an
organization.
• It is “Right of decision and command”
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3. Welingkar’s Distance Learning Division
OPPORTUNITY
There is an island of opportunity in the middle of
every difficulty.
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4. Welingkar’s Distance Learning Division
Characteristics of Authority
• Basis of getting things done
• Legitimacy
• Decision-making
• Implementation
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5. Welingkar’s Distance Learning Division
Sources of Authority
There are three theories regarding the
sources of authority.
• The formal authority theory
• The acceptance of authority theory
• The competence theory
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6. Welingkar’s Distance Learning Division
The formal authority theory
• Authority flows from top to bottom through the structure
of an organization.
Board of Directors
General Manager
Sales Manager
Sales Representative
Workers
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The acceptance of authority theory
• Authority flows from the superior to the
subordinates whenever there is an
acceptance on the part of the subordinates.
• Zone of acceptance depends upon various
factors like rewards, subordinate behavior
pattern, dismissal or non acceptance results,
special knowledge, confidence etc.
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8. Welingkar’s Distance Learning Division
The competence theory
• This type of authority is invested with the
persons by virtue of the office held by them.
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9. Welingkar’s Distance Learning Division
Delegation
Meaning:
Delegation is a process which enables a person to assign
a work to others and delegate them with adequate
authority to do it.
Importance of Delegation:
It is the most important methods of training
subordinates and building morals. This helps to
concentrate on planning, organizing and controlling.
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10. Welingkar’s Distance Learning Division
Elements of Delegation
• Assignment of duties or responsibilities
• Delegation of authority
• Accountability
Principles of Delegation
• Delegation to go by results expected
• Delegation of authority but Non-delegation of
responsibility
• Authority and responsibility should commensurate with
each other
• Unity of command
• Definition of limitations of authority
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11. Welingkar’s Distance Learning Division
Types of Delegation
• General delegation
• Specific delegation
• Writing delegation
• Unwritten delegation
• Formal delegation
• Informal delegation
• Downward delegation
• Accrued delegation
• Sideward delegation
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12. Welingkar’s Distance Learning Division
Advantages of Delegation
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Saving of time
Expansion and
Diversification
Opportunity for
development
Benefit of
specialized
service
Delegation
of authority
Basis of
effective
functioning
Advantages of
Delegation
Revolution of
work
Satisfaction to
subordinate
Interest and
Iniative
Efiicient
running

13. Welingkar’s Distance Learning Division
Problems of Delegation
Hesitation on the part of Superior
• Reasons
- Perfectionism
- Autocratic attitude
- Directions
- Confidence
- Control
- Avoidance of risk
- competition
- Inability of the subordinate
- Inability of the superior
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14. Welingkar’s Distance Learning Division
Problems of Delegation
Hesitation on the part of Subordinates
Reasons
• Love of spoon feeding
• Easier to ask
• Fear of criticism
• Lack of Information or resources
• Lack of self confidence
• Other work
• Inadequate incentives
• Fear of failure
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15. Welingkar’s Distance Learning Division
Steps involved in successful Delegation
Establishment of Control
definite goals
Report
Developing personal
Discipline for supervision
Training
Establishment of definite
Responsibility
Motivation Determining what
to delegate
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16. Welingkar’s Distance Learning Division
Prerequisite for Effective Delegation of
Authority
• Superior must understand the authority and responsibility of
their own.
• Superior must decide the portion of his authority that is to be
delegated.
• Superior should have knowledge of abilities and inabilities of
subordinates
• He must ensure the subordinates have understood the
delegated work.
• He should delegate only the routine functions to subordinate
• He must understand the need, importance and value of
delegation
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17. Welingkar’s Distance Learning Division
Prerequisite for Effective Delegation of
Authority
• He should delegate the work which can be performed
independently
• He must dissuade the subordinate from taking decision by
themselves
• He must release the decision making powers to his
subordinate
• Adequate communication network
• Clear definition of standard of accountability
• Delegation must be done in accordance with overall plan.
• Delegation of authority should be confined to organizational
structure
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18. Welingkar’s Distance Learning Division
Common faults in Delegation
- Close supervision
- Lack of direction
- Lack of accountability
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19. Welingkar’s Distance Learning Division
Decentralization
- Decentralization means each section has its
own workers to perform activities with the
department.
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20. Welingkar’s Distance Learning Division
Advantages of Decentralization
Saving of time Greater efficiency
and output
Maintenance of Departmental
secrecy loyalty
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21. Welingkar’s Distance Learning Division
Disadvantages of Decentralization
No proper division Heavy
of work expenditure
Duplicate of No Standardization
work
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22. Welingkar’s Distance Learning Division
Responsibility
• Meaning: It is the obligation to perform the
tasks, functions or assignments.
• Definition: Responsibility is an obligation to
perform certain functions and achieve certain
results.
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23. Welingkar’s Distance Learning Division
Elements of responsibility
• It arises from superior–subordinate
relationship.
• It ensures from contractual agreement.
• The responsibility cannot be transferred to
anybody.
• It is created by acceptance of authority
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24. Welingkar’s Distance Learning Division
Elements of responsibility
• There is an essence of obligation
• The responsibility may be general or
specific
• Responsibility is a continuing process by
nature.
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