delegation of authority

Delegation Of Authority: Importance In Management

Leadership 5 Mins Read
published on: 02 September 2023 last updated on: 15 May 2024

Delegation of authority is a situation in a management process where the higher managers share authority and powers with their subordinates. Managers do this when their work goes beyond their capacity. Here, managers share their work with their subordinates. This is one of the most important tools for the functioning of an organization. Delegation of authority basically multiplies the management.

In this article, you will learn about delegation of authority and understand what it means in an organizational context. Furthermore, we will also discuss some of the most essential aspects of delegation of authority, which make it an important thing for organizations. Finally, we will discuss various ways through which a company can implement delegation of authority. Hence, to learn more, read on through to the end of the article.

Delegation Of Authority – What Is It?

According to the United States Securities And Exchange Commission,

The Delegation of Authority Policy is the principal policy under which the Chief Executive Officer delegates part of his authority to the management of the Company at levels which are considered appropriate to enable management to fulfill its responsibilities.

However, once the employees exercise these authorities, they must realize that this exercise is an obligation towards the Company, and they must take responsibility for their actions. Furthermore, they must also stay accountable for their own decisions. 

Delegation of authority happens in every organization. An example of this type of organizational process is when a CEO delegates the writing of accounts to a subordinate and only reviews the financial statements at the end. The CEO might delegate all the clerical and routine tasks to his team.

Read More: Ethics In Business: Definition, Principles, Why They’re Important?

Why Is Delegation Of Authority Important?

Why Is Delegation Of Authority Important

Delegation of authority can be boiled down to transfer of authority down the order. In an organization, this is one of the most beneficial processes for the manager or an individual higher in authority. On one side, the manager benefits as the workload of the manager is reduced. On the other side, employees also benefit as they get the chance to show their worth and develop their skills.

The following are some of the most important benefits of delegation of authority:

1. It Helps To Reduce Workload

Delegation helps to reduce the workload of the top management. Here, the manager delegates some responsibilities down the order.

According to,

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.

2. It Improves The Team’s Efficiency

Managers delegate those jobs that are regular and of a routine nature. Hence, they get more time to spend on the strategic side of things. This helps to improve the efficiency of the manager. On the employee side, the speed of decision-making is increased.

3. Individuals Get The Chance To Specialize

When an employee gets a task that is of his interest, capacity, and skills, he enjoys it. This helps increase the employee’s specialization. This is how the individual gets success in a dynamic environment.

4. Employees Develop And Feel Important

Due to the delegation of authority, the capacity of the subordinate employee grows. This is because these individuals use their own judgment, power, and abilities to make decisions. Apart from that, providing employees with the power to make decisions empowers them. This also ensures that the employee is feeling important, as it enhances the employee’s loyalty.

5. There Is An Increased Accountability

As employees feel important, their ability to stay more accountable increases accordingly. They also become aware of the importance of the work in their hand as they try to contribute more.

6. Helps To Facilitate Growth

With delegation of authority, the organization gets the opportunity to bring more ideas and growth opportunities to the table. The top management can make more correct decisions by appropriately delegating authority to the right subordinate. This helps to facilitate the growth of the team, as well as the organization as a whole.

Delegation Of Authority – Ways To Do It?

According to,

Delegation of authority happens in all sectors, but the implementation varies. In some industries, the scope of responsibilities is defined clearly so that every person carries out specific tasks according to their job descriptions. In other cases, the job descriptions allow for greater flexibility.

The following are the steps you can take to implement processes of delegation of authority:

Step 1:

Prepare a plan of delegation. Start by dividing the project into smaller and manageable chunks. Review the workforce and find which task is appropriate for whom based on experiences, behavior, and qualifications.

Step 2:

Instruct subordinates. Properly instructing your subordinates will allow you to make your expectations clear to them. Here, you will need to provide all the necessary details like deadlines, expected results, milestones, etc.

Step 3:

Granting authority. Some processes need proper permissions and a higher power to make decisions. Provide authority to employees whenever the situation demands. However, you need to be careful while doing so.

Step 4:

Staying ready to do follow-up. It might happen that an employee can make wrong decisions. In such cases, you can do follow-up and enable the employee to remain accountable.

Step 5:

Perform Analysis and Feedback. Here, you must analyze the results of the tasks to find out the effectiveness of each team member. Provide constructive criticism as required.

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Final Thoughts

Basically, delegation of authority helps in better coordination between the managers and subordinates in an organizational hierarchy. It also helps subordinates feel important and as they also feel like contributing to the organization. It also helps the authority to define duties, powers, and accountability within the organization.

Delegation of authority helps to eliminate any scope of duplication and overlapping of responsibilities. Furthermore, every individual within the organization also gets a better idea of the working relationships. How do you think delegation of authority can help you make changes in your organization? Share your views with us in the comments section below.

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A passionate writer and an avid reader, Soumava is academically inclined and loves writing on topics requiring deep research. Having years of content writing experience, Soumava also loves creating blogs in other domains, including digital marketing, business, technology, travel, and sports.

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