Importance of Delegation of Authority
The importance of delegation of authority lies in the fact that it is beneficial to both the manager i.e. authority delegator and the authority receiver i.e. subordinates. The manager benefits as his workload are reduced, similarly, employees get benefited as they get a chance to develop their skills.
The following are the main points that justify the importance of authority delegation in management or the workplace.
One of the importance of delegation is that it reduces the workload of top management. By the means of delegation, the manager can delegate some of his responsibility and right to subordinate employees.
When business activities increase as well as the business diversifies its operations in such a situation it is not possible for a single manager to perform all activities. In such cases, the better option for the manager is to delegate the task to employees.
This reduces his workload and he can be focused on strategic areas.
Managers usually assign regular and routine nature of work to subordinates so that they will have more time to focus on strategic areas. This enables improving managerial efficiency and effectiveness.
Since subordinates are given the necessary authority to make decisions at their end, effective delegation increases the speed of decision-making. They do not have to wait for superiors’ permission, this increases the rate of job accomplishment.
Subordinates can complete more jobs within a limited time because of which the efficiency of employees as well as the organization will be improved. Such efficiency contributes to the organization’s competitiveness in this changing business setting.
Along with efficiency, the delegation of authority also facilitates efficient management in the organization. Because of the delegation, all the organizational activities are distributed to all the team members appropriately.
The routine and regular types of work are handled by subordinate-level employees while works in strategic areas are by top managers. This also enables managers to explore new ideas to run the operations.
Benefits of Specialization
Job specialization is achieved when the person is given tasks specific to his interests, skills, and capacity to perform. This lets the person get success in a dynamic environment.
In the delegation of authority, the manager delegates specific tasks to specific employees. The task and authority assignment is based on the nature of the task and the interests, qualifications, skills, experience, and capacity of the employee.
This helps employees to develop professionalism or specialization in the area of their specific job.
The power to make decisions is given to subordinates through delegation of authority, which empowers them. As a result of having to make wise decisions, it increases employee loyalty, dedication, creativity, and efficiency. Employee morale and motivation are raised as a result.
When authority is delegated, the worker’s capacity grows as they use their own judgment, decision-making, and power. This fosters greater initiative and self-assurance in the workforce.
Employees receive training on a variety of topics related to their functional responsibility in order to improve their capabilities. In this way, the delegation of authority develops the employees through psychological, sociological, as well as economic dimensions.
Accountability is the duty to respond to the superior with status updates on the assigned tasks. The decision-making authority given to subordinates in each position makes them feel as they are completely accountable for the choice’s success or failure.-
At the work, they become more responsive and accountable. They become more aware of the importance of timely report submission to their superiors.
As the decisions can be made quickly through employees in the responsibility areas, business organizations can grab instant opportunities. More correct decisions can be made with the appropriate delegation of authority to the right subordinate.
Top officials can be involved in planning future business activities. Quick and better decisions increase customer satisfaction. All these things facilitate organizational growth and expansion.
Delegation of authority also ensures the continuation of the operations of the organizations. For example, when a manager has to go on a long tour (say for a week) to continue the operations he can delegate the necessary authority and responsibility to his qualified subordinate then who will work on his behalf. This facilitates continuity in business operations.
Basis of Organizational Structure
Delegation of authority is the basis of organizational structure as it creates a formal relationship between authority and responsibility. It is to balance the authority and responsibility to make the well functioning of the organization. This is possible from an appropriate delegation of authority.