Delegation & Decentralisation

1 Mark Questions

1. Give the meaning of authority as an element of delegation. (Delhi 2014)

Ans. Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. As an element of delegation, it should be delegated in such a manner that a subordinate cannot escape from his/her accountability.

1. Give the meaning of accountability as an element of delegation. (Foreign 2014)

Ans. Accountability means being answerable for the final outcome. It cannot be delegated and flows upwards, i.e. a superior wi 11 be accountable to his superior for the satifactory performance of job.

3 Marks Questions

1. Decentralisation is a key element in effective organising. Explain with the help of any four reasons. (All India 2014,2009)

or Explain by giving any three reasons why decentralisation is important in an organisation.

(All India 2010; Delhi 2010)

Ans. Decentralisation refers to the systematic effort to delegate to the lowest level, all authority except which can be exercised at the central point. The following factors highlight its importance: (Any Four)

1. Greatern motivation Decentralisation improves the morale and motivation of subordinates which is reflected in better work performance.

1. Develops initiative among subordinates Decentralisation helps to promote self-

reliance and confidence amongst the subordinates. This is because when lower managerial levels are given freedom to take their own decisions, they learn to depend on their own judgement. It helps to promote initiative and creativity among them.

1. Develops managerial talent for the future As a result of decentralisation, employees get more opportunities to develop new skills. It makes them better future managers.
2. Quick decision-making Decentralisation in an organisation, provides more freedom to lower level managers to take their own decisions. There is no need to get approval from higher level. It helps in quick and better decision-making.
3. Facilitates growth and expansion Decentralisation facilitates organisational growth

through expansion and diversification. Top executives are not burdened by the administrative problems and complexities. So, they are able to plan expansion and diversification.

4. Explain by giving any three reasons why delegation is important in an organisation.(Delhi 2010)

Ans. Delegation is important because:

1. Business growth It helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures.
2. Healthy relations It establishes healthy superior subordinate relationships which are the basis of hierarchy of management.
3. Tool of training It allows the subordinates to take decision independently. Thus, it is a tool for developing managers for the future.
4. Delegation is a key element in effective organising. Explain with the help of any four reasons. (Delhi 2009c)

Ans. 'Delegation means the granting of authority to subordinates to operate within the prescribed limits/ (1) Effective delegation leads to the following benefits:

1. Effective management By empowering the employees, the managers are able to

function more efficiently as they get more time to concentrate on important matters.

1. Employee development As a result of delegation, employees get more

opportunities to utilise their talent. It also allows them to develop those skills which will enable them to perform complex tasks and assume those responsibilities which will improve their career prospects.

1. Facilitating growth Delegation helps in the expansion of an organisation by providing a ready work force to take up leading positions in new ventures.
2. Basis of management hierarchy Delegation of authority establishes healthy superior-subordinate relationships, which are the basis of hierarchy of management. It is the degree and flow of authority which determines 'who is reports to whom'.

4 / 5 Marks Questions