Authority and Delegation

• What occurs when delegation happens in management?

  Managers transfer duties to subordinates
• What remains with managers after delegation?

  Managers remain accountable for performance
• What are the three key concepts related to delegation?

  Responsibility, authority, and accountability
• Why is authority essential for a manager?

  It allows managers to implement policies
• From where is authority delegated?

  Authority is delegated from above
• What must subordinates do regarding authority?

  Subordinates must accept the authority
• What should be clear when delegation occurs?

  Authority must be clear and explicit
• What limits must be set for subordinates?

  Limits on what they can and cannot do
• What is a responsibility of a department manager?

  To explain performance that falls short
• What does accountability mean in management?

  Being answerable for assigned duties
• What happens if a subordinate performs poorly?

  Accountability falls on the manager too
• What are the advantages of delegation?

  1. Frees up management time for strategic tasks
  2. Empowers and motivates workers
  3. Provides experience for subordinates
  4. Quicker decision-making and responses
• What are the disadvantages of delegation?

  1. Customer expectations for manager presence
  2. Less common in small firms
  3. Quality of staff affects delegation extent
  4. Less effective in crisis situations
• How can the effectiveness of delegation be improved?

  1. Delegate to suitable individuals
  2. Assign interesting and challenging tasks
  3. Be explicit in expectations
  4. Avoid unnecessary interference
• What characterizes a centralized organizational structure?

  Decisions made at the top and passed down
• What are the advantages of a centralized structure?

  • Efficiency in decision-making
  • Consistency in procedures
  • Clear direction and command
• What are the disadvantages of a centralized structure?

  • Employee demotivation
  • Slow response to changes
  • Stifled creativity and innovation
  • Bureaucratic processes
  • Potential work delays
• What defines a decentralized organizational structure?

  Decision-making authority is distributed
• What are the advantages of a decentralized structure?

  • Improved employee motivation
  • Faster response times
  • Better focus for senior leaders
  • Encourages innovation
  • Easier career development
  • Flexibility in roles
• What are the disadvantages of a decentralized structure?

  • Inconsistent practices across the business
  • Duplication of work
  • Ineffective decisions by managers
  • Difficulty in coordination
  • Unhealthy rivalry between units
  • Not suitable for all industries
  • Dilution of company culture
  • Requires strong leadership
• What is a potential issue with decentralized structures in regulated industries?

  They may need centralized decision-making
• What can happen if strong leadership is not established in decentralization?

  Challenges in managing the organization arise