What is Delegation? Definitions, Characteristics, Elements, Principle, Types, Need

What is Delegation?

Delegation in management is the process by which a manager assigns part of their authority and responsibility to subordinates, while still retaining overall accountability.

Delegation of authority involves giving authority to various organizational positions to get things done. All important decisions are taken at top level by Board of Directors. The execution is entrusted to Chief Executive. The Chief Executive assigns the work to departmental managers who in turn delegate the authority to their subordinates. Every superior delegates the authority to subordinates for getting a particular work done. The process goes to the level where actual work is executed.

There is a limit up to which a person can supervise the subordinates. When the number of subordinates increases beyond it then he will have to delegate his powers to others who perform supervision for him. A manager is not judged by the work he actually performs on his own but the work he gets done through others. He assigns duties and authority to his subordinates and ensures the achievement of desired organisational goals.

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Delegation Definitions

Allen “The entrustment of a part of the work, or responsibility and authority to another, and the creation of accountability for performance.”

O.S. Hiner says “Delegation takes place when one person gives another the right to perform work on his behalf and in his name, and the second person accepts a corresponding duty or obligation to do what is required of him.”

Douglas C. Basil. Opens, “Delegation refers to a manager’s ability to share his burden with others. It consists of granting authority or the right to decision-making in certain defined areas and charging subordinates with responsibility for carrying through an assigned task.”

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Characteristics of Delegation

Delegation is the assignment of authority to subordinates in a defined area and making them responsible for the results. Delegation has the following characteristics:

• Delegation takes place when a manager grants some of his powers to subordinates.
  
  
• Delegation occurs only when the person delegating the authority himself has that authority i.e. a manager must possess what he wants to delegate.
  
  
• Only a part of authority is delegated to subordinates.
  
  
• A manager delegating authority can reduce, enhance or take it back. He exercises full control over the activities of the subordinates even after delegation.
  
  
• It is only the authority which is delegated and not the responsibility. A manager cannot abdicate responsibility by delegating authority to subordinates.

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Elements of Delegation

Delegation involves following three elements:

Assignment of Duties

The first step in delegation is the assignment of work or duty to the subordinate i.e. delegation of authority. The superior asks his subordinate to perform a particular task in a given period of time. It is the description of the role assigned to the subordinate. Duties in terms of functions or tasks to be performed constitute the basis of delegation process.

Grant of Authority

The grant of authority is the second element of delegation. The delegator grants authority to the subordinates so that the assigned task is accomplished. The delegation of responsibility with authority is meaningless. The subordinate can only accomplish the work when he has the authority required for completing that task.

Authority is derived from responsibility. It is the power, to order or command, delegated from superior, to enable the subordinate to discharge his responsibility. The superior may transfer it to enable the subordinate to complete his assigned work properly. There should be a balance between authority and responsibility. The superior should delegate sufficient authority to do the assigned work.

Creation of Accountability

Accountability is the obligation of a subordinate to perform the duties assigned to him. The delegation creates an obligation on the subordinate to accomplish the task assigned to him by the superior. When a work is assigned and authority is delegated then the accountability is the by-product of this process. The authority is transferred so that a particular work is completed as desired.

This means that delegator has to ensure the completion of assigned work. Authority flows downward whereas accountability flows upward. The downward flow of authority and upward flow of accountability must have parity at each position of management hierarchy. The subordinate should be made accountable to only one superior. Single accountability improves work and discipline.

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Principle of Delegation

The following are the principles of delegation

Principle of Functional Definition

The related or similar activities should be grouped together according to enterprise function. When the definition of a position is clear then delegation of authority becomes simple. In the words of Koontz and O’Donnell, “the more a position or a department has clear definitions or results expected, activities to be undertaken, organisation authority delegated and authority and informational relationships with other positions understood, the more adequately the individuals responsible can contribute toward accomplishing enterprise objectives.”

It is very difficult to define a job and the authority required to accomplish it. If the superior is not clear about the results expected then it becomes all the more difficult. It should be clear who should do what so that right amount of authority is delegated. Dual subordination results in conflicts, division of loyalty and lack of personal responsibility for results.

Principle of Unity of Command

The basic management principle is that of unity of command. This principle states that a subordinate should report only to single superior. This will give a sense of personal responsibility. Although it is possible for a subordinate to receive orders from more superiors and report to them but it creates more problems and difficulties.

An obligation is essentially personal and authority delegation by more than one person to an individual is likely to result in conflicts in both authority and responsibility. This principle is also useful in the classification of authority-responsibility relationships.

Principle of Delegation by Results Expected

The delegation of authority should be based on the basis of results expected. The authority should be sufficient to achieve the desired results. If the authority is insufficient then results will not be achieved. So there should be a balance between the results expected and the authority required.

Principle of Absoluteness of Responsibility

The responsibility of a subordinate, once he has accepted the work, is absolute to his superior. The responsibility of the superior does not decrease once he has delegated authority. A person can delegate authority and not responsibility. He will remain accountable for the work even if it is delegated to the subordinate. So the responsibility of superior and subordinate remains absolute.

Principle of Parity of Authority and Responsibility

Since authority has the right to carryout assignments and responsibility is the obligation to accomplish it, there should be a balance between the both. The responsibility should bear logical relationship with authority delegated. The subordinate should not be burdened with high performance responsibility with delegating enough authority.

Sometimes the authority is delegated but the concerned person is not made accountable for its proper use. This will be a case of poor management. The parity between authority and responsibility will be essential for achieving efficiency.

Authority Level Principle

The principle of decision-making should remain at the level at which authority is delegated. The managers delegate authority to subordinates but have the temptation to make decisions for them. They should allow the subordinates to take their own decisions as per the authority delegated to them.

The delegation of authority will be effective only when it is clear and understandable to subordinates. The subordinates should know the area of their decision-making and should avoid the temptation of referring things to higher ups. In the words of Koontz and O’Donnell, the authority level principle would be “maintenance of intended delegation requires that decisions within the authority competence of individuals be made by them and not be referred upward in the organisation structure.”

Scalar Principle

The scalar principle refers to the chain of direct authority relationships from superior to subordinates throughout the organisation. The ultimate authority must rest somewhere. Subordinates must know to whom they should refer the matter if it is beyond their authority. The more clear the line of authority from top manager to every subordinate the more effective will be responsible decision-making.”

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Types of Delegation

Delegation may be of the following types:

General or Specific Delegation

When authority is given to perform general managerial functions like planning, organising, directing etc., the subordinate managers perform these functions and enjoy the authority required to carry out these responsibilities. The chief executive exercises overall control and guides the subordinates from time to time.

The specific delegation may relate to a particular function or an assigned task. The authority delegated to the production manager for carrying out this function will be a specific delegation. Various departmental managers get specific authority to undertake their departmental duties.

Formal or Informal Delegation

Formal delegation of authority is the part of organisational structure. Whenever a task is assigned to a person then the required authority is also given to him. This type of delegation is part of the normal functioning of the organisation. Every person is automatically given authority as per his duties. When production manager gets powers to increase production then it is a formal delegation of authority.

Informal delegation does not arise due to position but according to circumstances. A person may undertake a particular task not because he has been assigned it but it is necessary to do his normal work.

Lateral Delegation

When a person is delegated an authority to accomplish a task, he may need the assistance of a number of persons. It may take time to formally get assistance from these persons. He may indirectly contact the persons to get their help for taking up the work by cutting short time of formal delegation. When the authority is delegated informally it is called lateral delegation.

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Need of Delegation

Delegation is a universally accepted principle. It has been practised since time immemorial and in every field. Delegation is necessary not only for a business undertaking but also for running a government. In government, legislative bodies delegate their powers to Council of Ministers who in turn delegate to officers and so on.

Delegation is essential even for running a family because head of the family will have to get the help of various members for performing various tasks. An industrial undertaking benefits by delegation in the following ways:

Relieving Top Executives

Top executives cannot perform and supervise each and every work. Moreover they are required to undertake important tasks of planning and controlling. Delegation helps executives in delegating their work to subordinate officers.

Improved Functioning

In the absence of delegation some persons may be burdened with more tasks while others may not have sufficient work to do. Delegation helps in rationalizing the functioning of an organisation. Work is divided among various persons in such a way that it is done in an efficient way. Nobody is unduly burdened and no work is left unattended.

Use of Specialists

Delegation enables the use of specialists for taking up different functions. A production manager will be assigned the task of production, a sales manager will look after sales department, a lawyer will look after legal matters and so on. The use of specialists for different functions will improve the quality of work.

Helps in Employee Development

When subordinates are given independent assignments then they will be able to use their initiative and experience. This will also give them confidence in taking up further responsibilities. Without delegation, subordinates will not get a chance to try their knowledge. Delegation of power is the best way of developing subordinates and preparing them for taking up more responsibilities in future.

Helps in Expansion and Diversification

The expansion and diversification of an enterprise needs the services of more and more persons. The assignment of various tasks to subordinates will prepare them for undertaking new assignments.

If subordinates are not assigned important works earlier then it will be dangerous to give them independent tasks straight way. Delegation is very useful for undertaking expansion and diversification plans.

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Factors Influencing Degree of Delegation

Delegation of authority is a must for every organisation. The question to be decided is how much authority should be delegated to subordinate managers. The pattern to be followed for delegation should be decided on the basis of its requirements. It will be wise to check from time to time the already existing delegation of authority in order to make sure that it is appropriate and adequate.

A number of factors influence the decision about delegation. Some of these are discussed as follows:

Knowledge about Company

The history of the company influences the degree of delegation. A company grown over a period of time has a tendency to centralise powers. When a concern is small then most of the decision-making is done by the owner. With the growth of business, the tendency to centralise powers remains.

On the other hand if a concern is the outcome of a merger, amalgamation or combination, there may be a great amount of decentralisation. If a company is working on a decentralised pattern it will be run in the same way even on its acquisition. So the growth history of a concern influences the degree of delegation.

Assignment of duties

The element of delegation is linked to the availability of subordinate managers. If sufficient persons are available who can take responsibility then delegation can easily be done. Generally, managers complain that sufficient subordinate managers are not available who can be assigned important duties. Unless subordinates are delegated the powers they will not learn the art of management. With additional experience and training their judgment would be improved and they will become more capable subordinates.

Many large firms push decision-making to the lower ranks of the organisation for the purpose of developing and training managerial manpower. A subordinate may be given small powers in the beginning. As he develops his managerial capabilities he can be assigned more important work.

One thing should be clear that unless otherwise powers are delegated to lower levels, the concern will not be able to develop subordinate managers. The delegation process should be continually pursued so that people are trained to undertake more responsibilities.

Importance and Costliness of Decisions

The importance and costliness of decisions greatly influences the degree of delegation. Generally speaking, the costlier and more important the decision, the greater the probability of its being made at the upper level of the managerial hierarchy. Decision-making also requires various facts and figures about the issue.

A manager will ensure that he gets all required information for deciding the issue. This type of information is easily available at higher levels of management. A manager knows that he can delegate authority and not responsibility.

Some decisions can influence the whole organisation. Any wrong decision on such important matters can damage the enterprise beyond control. Such decisions are taken at higher level because these persons have the past experience of deciding such things. In a manager’s career he should first be given authority to take decisions which are not too costly so that he is able to learn from his experience.

Size of the Enterprise

The extent of delegation is linked to the size of the enterprise. In a large unit more decision making is needed at various levels of management. The problems of communication and co-ordination often arise in such units. If decision-making is closer to the place of action it will save time, paper work is reduced, misunderstandings in communication can largely be eliminated. There is a tendency to decentralise in big units for avoiding many difficulties.

Available Controls

A manager delegating authority wants to be sure that it is used in accordance with his intentions and the general objectives of the organisation. In order to achieve this there must be control devices.

Generally, managers hesitate to delegate due to the reason that they do not know how to control. They have a feeling that it takes more time to exercise control than exercising the authority themselves. It will be better to set up some control devices. The better the control devices, the more will be the delegation of authority.

Types of Enterprise

The degree of delegation of authority may also be influenced by the type of enterprise. If the enterprise is in an industry which is rapidly expanding, as in the electronic field, top management will have to delegate otherwise it will be over burdened with many decisions.

Decentralisation of authority will take place even if the subordinate managers do not have adequate experience to exercise authority. Management should make guidelines for subordinate managers for taking proper decision. If the enterprise operates in a static industry then all decision-making is done at the central level. In case of banking and insurance the growth is slow and decision-making remains at the top. So delegation of authority depends upon the nature of the enterprise.

Environmental Factors

In addition to internal factors delegation may be influenced by internal factors too. These factors may be natural unions, government control over business and tax policies. Some large concerns have to deal with workers’ unions at national level.

All the negotiations are done and decisions are taken at national level. In such a situation the things are decided at head quarter level and are applicable at all levels It, therefore, follows that within the area of labour relations, decision-making is decentralised. The same holds true as applied to government control over business, and tax laws.

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Difference Between Decentralisation and Delegation

The words decentralisation and delegation appear to be inter- changeable but it is not so. Even though both involve dispersal of authority but decentralisation is an extension of delegation. Following are the points of distinction between the two:

Delegation	Decentralisation
Delegation is individualistic. It involves two persons, superiors are subordinates.	Decentralisation is totalistic in nature. It involves delegation from top management to the department or divisional level.
Control rests with the delegator or superior.	In this system top management exercises minimum control. All powers are given to concerned departments or divisions.
Delegation is essential to get things done by others. Unless otherwise authority is delegated it will be difficult to assign responsibility.	Decentralisation is optional because it is the philosophy of management. Top management may or may not disperse authority.
In delegation, responsibility remains with the delegator. He can delegate authority and not responsibility.	In decentralisation, head of the department is responsible for all activities under him. He is required to show better performance of the whole department.