Delegation and

Decentralization
 Ref: Chapter 11, Organization and Management By R.D Agarwal

Delegation:
Delegation is the primary mechanism through which
organization work is distributed among its employees,
authority is vested in them for performance of assigned tasks,
and obligation is imposed on them to perform adequately.
Bases of Delegation:

1. Activity Analysis
2. Decision Analysis
3. Relations Analysis
Objectives of Delegation:

1.Less important work need not to done by executives.

He can devote more time on important areas of his
duties like planning, co-ordination and control.
2.Develop the subordinate to take more responsibilities
3.Push lowest level to make decision making
4.Motivate the subordinate.
Advantages of Delegation:

1.Enhancement of organizational effectiveness

2.Frees from less important work
3.Tool of employee and development and motivation
4.Decisions are likely to be more timely and realistic
Obstacles to Effective Delegation:
Superior related reasons
1.Belief that he can make better decisions
2.Fear of losing importance
3.Fear of loss of control
4.Fear of being exposed
5.Tendency to be autocratic
6.Unwillingness to take risks
Obstacles to Effective Delegation:
Subordinate related reasons
1.Lack of self confidence
2.Lack of motivation
3.Fear of making mistake
4.Dependent personality
5.Unclear delegation
Principles of Effective Delegation:

1. Authority should be commensurate with responsibility

2. Interference should be minimum
3. Tolerances of mistakes
4. Adequate controls should be established
5. Goals should be predetermined
6. Policies, Rules and Procedures should be established to guide
decision
7. Upward delegation should not be allowed
8. Delegation should be rewarded.
 Decentralization:
Decentralization:

Decentralization means wide distribution of authority throughout the

organization so that managers at various levels have adequate authority to make
their job related decisions.
Principles of Decentralization:

1.Role of Top management should be defined

2.Centralized controls and measurements should be
established
3.Authority of division should be clarified
4.Balance should be defined between decentralization
and centralization
Advantages of Decentralization:

1.Frees top management from operational

responsibility
2.Manager Development
3.Better and Speedier decision
4.Permits management by objectives and self control
Group Dynamics: