Saturday 6 December 2014

Authority, Responsibility and Delegation

AUTHORITY

Authority refers to the scope and amount of discretion given to a person to make decisions by virtue of the position he holds in the organization. It is also referred to as the power or the right to take decisions. The source of a manager's authority in a formal organization is usually from the top. However, some auhority is sourced or derived from the bottom of the organization's hierarchy. Thos form of authority comes from surbodinates and may be related to an individual's personal qualities or social rank and it is associated with informal organizations.



RESPONSIBILITY
This refers to the liability of a person called upon to carry out certain tasks. It is the obligation to do something or perform task assigned by his superior or a board of directors may have responsibilities over those duties bestowed on them by the shareholders. Such duties must be performed conscentiously, competently and enthusiastically.

Unlike authority, responsibility cannot be delegated. Where a superior delegates authority to his surbodinates, he remains responsible for ensuring that the work gets done.



ACCOUNTABILITY

With authority and responsibility give, an individual can be held accountable for the specific activities or duties. Accountability is answerability to superior for what has been carried out.



DELEGATION OF AUTHORITY
Delegation is the transfer of authority from the superior to the surbodinate. It is the investment of one person with the power to act for another. This can only occur if the superior who delegates initially possesses the powers delegated.

Delegation of authority is fundamental in most formal organizations. The source of all authority in formal organizations is the shareholders. The shareholders delegates some authority to the board of directors, but regains some of the authority (for example approval of annual accounts). The board in turn delegates some authority to the top management. So the process of delegation is repeated down the chain of command to the lowest level. Delegation gives effect to decentralization in an organization



BASES FOR DELEGATION
The principle of delegation has the following bases:
a) Physical and mental limitations to the workload  of the superiors that necessitates delegation

b) Routine and less important  tasks are easily passed down.

c) The size and complexity of an organization foster specialization and delegation.



STAGES OF DELEGATION
a) Definition of the required result and expected performance The delegation result or expected performane  

b)Assessment of surbodinate;s capabilities

c) Allocation of resources


PRINCIPLES OF DELEGATION.

1. Authority and responsibility: Must be profoerly balanced within an organisation. For example a manager who is not held responsible and accountability for his authority may abuse it.

2. Responsibility cannot be delegated.

3. Surbodinates should be givensufficient authority to do all that is expected of them.

4. The capabilities of the surbodinates should be considered to ensure that he would be able to handle the tasks delegated.

5. The authority delegated should be clearly defined to avoid misinterpretation.

6. The authority should be modified whenever necessary because of changes within and outside the organization.

7. The unity of command and chain of command priniple should be followed to ensure effective delegation

8. As no organisation can function well without delegation, managers should develop willingness to delegate.


FACTORS DETERMINING DELEGATION OF AUTHORITY

1. Importance of the decision: Less important decisions are esily delegated while strategic decisions are retained at the top. Importance of decisions depends on the cost and the complexity of the issues involved.

2. The size of the organization: In small organizations, top management makes all the decisions while larger organizations are decentralised and hence, delegation is easily practised.

3. Management style and philosophy: Managers differ greatly in their willingness to delegate. Some managers underdelegate while others overdelegate.

4. Availability of capable surbodinates.

5. Type of organization: For example, most authority in multinational corporations is decentralised and senior managers in the subsidiaries have wider powers than in other types of organisations.



ADVANTAGES OF DELEGATION 

1.Delegation is essential to obtain prompt action.

2. It enables managers to perform high level tasks and delegate routine ones.

3. Delegation provides training experience for junior managers.

4. It can result in better decisions as lower level managers may be closer to the problem.

5. Delegation boosts the morale of  surbodinates.



DISADVANTAGES OF DELEGATION

1. Control at the top of delegated authority may be much more difficult.

2. By delegating, a manager may over time lose touch with what is happening in the organization.



WHY  DO SOME MANAGERS FAIL TO DELEGATE?  

In practice, managers fail to delegate  because:

1. They feel that surbodinates may carry out the work poorly.

2. Some managers do not want to lose touch of what is happening in their department.

3. They are unwilling to accept that their surbodinates have developed necessary skills to handle complex problems.

4. Some managers are selfish and do not want to train others.


                To overcome the reluctance of managers to delegate, it is necessary to:
1. Provide a system of selecting surbodinates who will be handling delegated authority in a responsible way.

2. Have a system of open communications in which the superior and surbodinates freely interchange ideas and information.

3. Ensure that a system of control is established to monitor responsibility and accountability.

4. Reward effective delegation by superiors in terms of pay, promotions, status and official approval.

  

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