AUTHORITY AND DELEGATION INTRODUCTION Authority Delegation Responsibility Centralisation

AUTHORITY AND DELEGATION

INTRODUCTION � Authority � Delegation � Responsibility � Centralisation � Decentralisation � Distinction delegation between decentralisation and

AUTHORITY In the words of Simon, “Authority may be defined as the power to make decisions which guide the actions of others.

CHARACTERISTICS OF AUTHORITY Authority is a relationship between two individuals, one superior and the other subordinate. � There exists a right in authority. The right is given by a superior to the subordinate. � The authority enjoyed by the subordinate is not unlimited. � The person is required to use the authority as per rules, regulations and norms of the organisation. � The authority is given to influence the behaviour of subordinates so that right thingds are done at right time. � It also helps in co-ordinating various activities. �

� Though authority is always objective but its existence is always subjective. � Authority can be delegated.

SOURCES OF AUTHORITY � Legal/Formal Authority � Traditional Authority � Acceptance Theory � Competence Theory � Charismatic Authority

RESPONSIBILITY Responsibility is the obligation to do something. It is the duty that one has to perform in the organisation. Authority and responsibility go side by side. One can delegate authority but not responsibility. In the words of GEORGE TERRY “Responsibility is the obligation to carry out assigned activities to the best of his abilities”

Superiorsubordinate relationship Continual or restricted Features of Responsibilit y Cannot be delegated Upward sloping Obligation Cannot be delegated

AUTHORITY � � It is the right of the superior to command the subordinates. It normally arises either from legal provisons & formal contract. It can be delegated from a superior to a subordinate. It may continue for a long time. RESPONSIBILITY � � It is the obligation of a subordinate to perform an assigned task. It arises from superior subordinate relationship. It cannot be delegated. It is over when the assigned task is completed. AUTHORITY AND RESPONSIBILITY

DELEGATION Delegation is an administrative process of getting things done by others by giving them responsibility. Every superior delegates the authority to subordinates for getting a particular work done. Acc. To O. S. Hiner, “ Delegation takes place when one person gives another the right to perform work on his behalf and in his name, and a second person accepts a corresponding duty or obligation to do what is required to him. ”

Characteristics Of Delegation Possesses Authority Part of Authority is Delegated Full Control Granting Powers Responsibility is not delegated

Grant of Authority Assignment of Responsibilit y Creation of Accountabilit y Elements Of Delegatio n

PRINCIPLES OF DELEGATION � Principle of Functional Definition � Principle of Unity of Command � Principle of Delegation by Results Expected � Principle of Absoluteness of Responsibility � Principle of Parity of Authority and Responsibility � Authority Level Principle � The Scalar Principle

General or Specific Delegation Formal or Informal Delegatio n Types of Delegatio n Lateral Delegation Reserved Authority and Delegated Authority

PRE-REQUISITES FOR DELEGATION � Willingness to Delegate � Climate of Trust and Confidence � Faith in Subordinates � Fear of Supervisors

Relief to Top Executives Improved Functioning Use of Specialists Helps in Employee Developmen t Importance of Delegation Helps in Expansion and Diversification Better Coordination Motivates Subordinate s Prompt Decision. Making

FACTORS AFFECTING DELEGATION o o o o Company’s History Availability of capable persons Importance and Costliness of Decisions Size of the Enterprise Available Controls Types of Enterprise Environmental Factors

WAYS TO MAKE DELEGATION EFFECTIVE q Defining of Assignments q Proper Communication q Rewards for Proper Implementation q To Establish Feedback System q To Follow Unity of command q Proper Selection of Persons q Establishing Proper Controls q Motivate Subordinate q To Establish Objectives q To Provide Supportive Supervision

CENTRALISATION Centralisation refers to reservation of authority at central points within the organisation. It implies that a majority of decisions regarding the work are made not by those doing the work but a point higher up in the organisation. In simple words, “If authority to take decisions retained at top level s, then the organisation is said to be centralised. ”

FACTORS AFFECTING CENTRALISATION OF AUTHORITY � Achieving Uniformity of Actions � Facilitating Integration � Promoting Personal Leadership � Handling Emergencies

DECENTRALISATION Decentralisation implies the dispersal of decision-making power at lower levels of management. When the power to take decisions and formulate policies does not lie with one person at the top but is passed in to different persons at various levelss.

Number of Decisions Importance of Decisions Measurement of degree of Decentralisation Checking of Delegation Effect of Decisions

WHAT FACTORS BRING ABOUT DECENTRALISATION � When there is a need to take quick decisions on the spot to take advantage of the situation then power is delegated to the level where it is neede. � When top management wants to reduce communication work then decentralisation is undertaken. � The company’s product or market may require decentralisation of decision making to give emphasis to product or market. � When growth and diversification takes place then decentralisation is necessary.

ADVANTAGES OF DECENTRALISATION � Reduces burden of top executives. � Quick decisions � Facilitates Diversification � Motivation of Subordinates � Sense of Competition � Provides Product or Market Emphasis � Division of Risk � Effective Control and Supervision � Manager Development

DISADVANTAGES OF DECENTRALISATION � Lack of Co-ordination � Difficulty in Control � Costly � Lack of Able Managers � Inconsistencies � Improper Handling of Emergency Situations