Delegation of authority is the process of assigning specific task by manager to subordinates within organization and giving them authority to perform the task. It minimizes the burden of manager because through delegation the routine responsibilities of the manager are reduced. Consequently, he becomes able to concentrate on more important matters. The manager should not delegate all the authority to subordinates. The authority must be equal to the responsibility. If the authority is greater than the responsibility, it may lead to misuse. On the other hand, if the responsibility is greater than the authority, it will lead to incapability of completion of assigned task.
Importance of Delegation of Authority
The importance of delegation of authority is explained below.
1. Effective Management
In the delegation process the managers transfer routine tasks to subordinates. So the manager feels relieve from the burden of routine tasks and becomes free to concentrate more effectively on other important matters. Thus, the manager is enabled to give greater attention and efforts towards broader and more important issues of management. In such a way, delegation of authority helps in improving managerial efficiency and effectiveness.
2. Motivation of Employees
Delegation leads to motivation of employees. When the manager passes his responsibilities and authority to subordinates, it motivates them because it develops the felling of trust shown by the manager. It helps improve their working efficiency. The subordinates become more responsible and dedicated to their work. They take more initiatives and interest in the work. They fell proud of being given such responsibilities and authority. This motivation encourages the subordinates to develop their effort towards achievement of common objectives.
3. Advantage of Specialization
An individual possesses unique abilities, knowledge and skills. Delegating right job to the right person can significantly accelerate the progress. The manager assigns responsibilities and as well delegates authority to subordinates on the basis of their abilities, knowledge, skills and experience. Since the work is assigned to those who have expertise, it helps for specialization. For instance, finance may be assigned to finance manager and sales may be assigned to sales manager.
4. Delegation Creates Hierarchy
Delegation determines who has to report to whom. If subordinates know they have to answers to someone, they will try their best to finish the job. This authority flows from top to bottom which produces relationship between superiors and subordinates.
5. Develop Team Spirit
Delegation of authority develops effective communication among superiors and subordinates. The subordinates are bound to report their superiors and the superiors are responsible for the performance of subordinates. This develops cordial relationship and team spirit among superiors and subordinates.
6. Facilitates Efficiency and Quick Actions
Delegation saves time because it allows subordinates to deal with situation quickly. The subordinates can promptly take their decisions within their authority. There is no need to go to superiors for routine matters. This enhances the overall efficiency of the organization.