DELEGATION OF AUTHORITY
Delegation of authority refers to assigning the task of decision making to the subordinate managers at lower levels by superior. As a rule and logic, only that authority can be delegated that the delegant possesses. Moreover, the superior will retain authority which involves important decisions or the work in which he is specialized and the rest of the authority he will delegate to subordinates.
Decisions regarding capital, expansion of product line, dividend, price change, hiring management personnel are retained by the top level management. Department objectives and policies are set by middle level management. Routine decisions are made at the supervisory level, the lowest level of’ management.
The Process of Delegation
The process of delegation involves the following:
1. The superior (delegant) will define the results expected of the subordinate to whom the authority will be delegated.
2. The superior gives out the task to be performed.
3. Having completed above two steps the superior will delegate the authority to his subordinate manager.
4. It is the controlling stage where the superior will hold the subordinate responsible for the accomplishment of the work assigned.