Delegation and Decentralization

Presented By:HARSH GUPTAABHISHEK TEWARI

What is delegation ?

Delegation occurs when some people ask others to perform tasks on their behalf .e.g. most of us delegate to grocers the task of acquiring various foods .

In this way it helps us to overcome personal limitations because each of us has limited time ,energy and talents. Thus it increases the numbers of tasks that can be accomplished .

Devolution of authority & responsibility on subordinates to make them perform the assigned duties or tasks.

Entrustment of responsibility or duty to subordinates

Granting of authority to enable the subordinates to perform the duties assigned

Creation of obligation on part of the subordinate to perform duties in an orderly manner

Delegation

Kinds of delegation

There are three kinds of delegation-

Downward delegation. Revised (Bottom to top,sharing)

delegation. Sidewise delegation .

Principles of delegation

Delegation by results expected. Use of exception principle . Scalar principle . Absoluteness of responsibility. Parity of authority and responsibility. Unity of command . Clarity of delegation Reward for effective delegation.

Delegation of authority and responsibility

Authority and responsibility must be delegated through out a firm to promote efficiencies of an organizational structure. Delegation of authority is necessary whenever a manager must rely on another to help accomplish an objective.

Dual characteristic of delegation

As a result of delegation the subordinate receives authority from the superior but at the same time the superior retains all original authority. Therefore authority and responsibility can be delegated by a manager, they can never be abdicated .

Process Of Delegation

A Assignment of Duties

II Stage

III Stage

IV Stage

I Stage

Transfer of Authority

Acceptance of Assignment

Creation of Responsibility

B

C

D

What to Delegate?

Tasks in which your staff have more experience must be delegated to them.

Tasks of routine nature.

Barriers to Delegation

Barriers relating to Delegators. Barriers relating to Subordinates. Barriers relating to Organizational

Environment.

Barriers relating to Delegator

Tendency to do things personally. Fear of being exposed. Attitude that the subordinate is incapable of

using the authority properly. Lack of ability to direct. Lack of proper communication ,coordination

and control systems. Lack of confidence in subordinates.

Barriers relating to Subordinates

Lack of self confidence . Lack of positive incentives. Difficulty in Decision Making. Undue interference by superior. Poor superior-subordinate relations.

Barriers relating to Organizational Environment

Size of Organization. History of Organizations. Degree of Centralization and

Decentralization. Organizational culture.

Ways to overcame the barriers to delegation

Motivate the subordinate to accept the responsibility .

Realize the need for delegation. Develop an effective system of

communication. Determine what to delegate and provide

adequate authority. Choose the delegate wisely . Give assistance to the delegate.

Why must a manager delegate?

A manager must delegate because of the following reasons.

There is always a limit to personal capacities.

Delegating is a cardinal step in developing subordinates.

The need for organizational depth .

Concentration of decision-making power at the top hierarchy of management

Dispersal of decision-making power to the low levels of organization

According to Fayol

“Everything which goes to reduce the importance of the subordinate’s role is centralization”

“Everything that goes to increase the importance of the subordinate’s role is decentralization”

Centralization and Decentralization

Centralization of authority

Centralization of authority means retention or concentration of management authority in a relatively few key managerial positions at the nerve centre of the organizational structure.

When do organizations tend to be centralized ?

The size of the organization is small. Business activities are concentrated

at a single point . Top managers are of dominating

nature . Environment is stable . When the stage of business is initial

Features of centralized organizations

Little delegation of authority. Top management assumes most of

the power and responsibility . Close supervision and control on

every aspect of managerial functioning by top managers .

Advantages of centralization

Effective utilization of talents of the top management .

Minimize the Duplication of efforts. Quick decisions (particularly in time

of emergency ). Reduces co-ordination problems as

a unifying force integrates all operations.

Powerful top management.

Disadvantages of centralization

Overburdened top management . Delayed and unsound decisions . Rigidity of organization. Unsuitable for growing and

complex organizations.

Decentralization

According to Louis A. Allen- Decentralization is the systematic effort to delegate to the lowest levels all authority except that can be exercised at a central point.

According to Koontz- Decentralization is the tendency to

disperse decision making authority in an organized structure .

Advantages of decentralization

Reduction of work load of top management .

Quick Decision-making. Motivation of Personnel. Facilitates product diversification. Promotes the development of

managers. Aid adaptation of fast changing

environment. Flexibility in Organization.

Disadvantages of decentralization

Makes uniform policy making more difficult.

Results in loss of power of the upper level managers .

Lack of Coordination. Limited by lack of qualified managers . Involves considerable expenses for training

managers .

Factors affecting degree of centralization/decentralization

Size of Business. Significance of a decision. Desire for uniformity. Regulation of the Government . Environmental uncertainty. Ability of subordinates . Growth rate of an organization .

Centralization and decentralization as tendencies

complete centralization complete decentralization

(no organization structure) (no organization structure)

Basis Delegation Decentralization

Meaning Authorizing Subordinate to make Decisions

Delegate the authority to fullest Possible level

Responsibility Responsibility remains of the delegator

Responsibility also delegated to subordinates

Power to Control

Power to Control vest with Delegator

Power to Control is also Delegated

Process It is a process which explain superior subordinate relationship

It is an outcome which explain relationship between top management and other departments

Delegation and Decentralization