MADAWALABU UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

MANAGEMENT ASSIGNMENT I

12/23/2018
AUTHORITY, DELEGATION AND
THEIR RELATIONSHIPS

Group members

1. Alemnesh Ashenafi
2. Bilen Demisie
3. Cherenet Bekele
4. Ermias Mamo
5. Fanose Abera
6. Fetra Mohammed
7. Getahun Zewdu
8. Kefyalew Keno
9. Nesrudin Musa
10. Zerihun Debele

Submitted to: Melese Chala (MBA)

Authority and Delegation

Table of Contents
Introduction ...................................................................................................................................... - 2 -
Authority ............................................................................................................................................. - 2 -
Types of authority ................................................................................................................... - 3 -
Delegation........................................................................................................................................... - 4 -
Delegation of Authority ........................................................................................................... - 5 -
Principles of Delegation of Authority ...................................................................... - 5 -
Types of delegation of authority .................................................................................. - 7 -
Features of Delegation of Authority ........................................................................... - 8 -
Elements of Delegation of Authority ........................................................................... - 8 -
Process of Delegation of Authority ........................................................................... - 10 -
Steps for Successful Delegation .................................................................................. - 12 -
Merits and demerits of Delegation of authority .............................................. - 13 -
References......................................................................................................................................... - 15 -

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Authority and Delegation

Introduction
While it is clear that authority can be defined as one person having the ability to make decisions
that are binding on others, the actual delegation process in present-day management environments
is not so clear cut.

Delegation, simply means a manager will temporarily transfer formal authority to another position
on an indispensable assignment [8]. The manager must select someone who can do an assignment
correctly, and then allow time for the person selected to either accept or reject the conditions of
the offer. Upon acceptance, the manager will create the responsibility, transfer formal authority,
and allow the delegatee to do the assignment, with minimal oversight (Brown, 1998; Davidson,
1986). Unfortunately, when managers fear losing control they can inadvertently thwart the
delegation process entirely (Anderson, 1992). Trust is absolutely essential when a manager
transfers formal authority to another position. Managerial fear of losing control is a phobia known
as threat rigidity. Managers fail to transfer authority to another position in an organization
successfully because of this phobia. The main problem with delegating authority is that some
managers tend to have an inherent distrust of the people working for them based on their own prior
negative experiences with delegating authority. In the past, entrepreneurs and female executives
found it harder to let go of responsibility and authority. Threat rigidity comes loaded with a variety
of complex reasons.

Good leaders are different than good managers in that good leaders know how to give up control,
even when they are tempted to do everything themselves; often it is much better for the
organization when leaders delegate authority. Delegation is a critical factor in helping anyone
become a leader. Delegating authority has even helped virtual teams perform better and when
virtual team leaders were assessed by team members those who delegated authority were positively
correlated with team member satisfaction.

Authority
Authority is a manifestation of power, it exists where one person has a formal right to command
and another has a formal obligation to obey, this is typically understood as having the power to
give directions and require compliance. Authority may be seen as institutionalized power. It is
often used more broadly refers to a person’s ability to exert power as a result of quality such as k

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Authority and Delegation

nowledge or titles such as judge. Formal authority is the type of power that is associated with org
anizational structure and management.

The effective use of authority is a key part of any management role. Within organizations,
management authority is defined as the power or right to give orders, instructions or directions,
make decisions, and enforce obedience; but this is rarely an absolute power; a person has a greater
or lesser degree of authority depending on a range of circumstances including their personal
attributes, the management position held, the culture of the organization and the willingness of
subordinates and others being directed to accept the person’s authority.

In an organization, authority differs according to job positions. This is because there exists
interlinking between the job positions and levels of the organization. Again, authority defines the
superior-subordinate relationship. According to this, the superior communicates his decisions to
the subordinate, because he has the authority to do so, and expects the subordinate to comply with
this decision. Although authority is inherent in the job position of a person, it also depends on the
personality of the superior.

Generally, authority is highly concentrated at the top level of an organization and reduces as we
move to lower levels [2]. In other words, the authority has a top to bottom flow i.e. superior has
authority over his subordinate. Lastly, the limit or scope of authority also depends on the laws,
rules and regulations of the organization.

Types of authority
There are different types of authority

1. Line authority: Managers with line authority are those people in the organization wh
o are directly responsible to achieve organizational goals. LA is represented by the or
ganizational chain of command.
2. Staff authority: People or groups with Staff authority provide service and advice to li
ne managers. Brand department, Sales and marketing department are among the
examples of SA.
3. Functional authority: Authority of members of staff department to control the activi
ties of other departments. Example: Quality Control(QC) department

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Authority and Delegation

Delegation
Delegation is the assignment of any responsibility or duty to another person (normally from a
manager to a subordinate) to carry out specific activities [1]. It is one of the core concepts
of management leadership. However, the person who delegated the work remains accountable for
the outcome of the delegated work. Delegation empowers a subordinate to make decisions, i.e. it
is a shifting of decision-making authority from one organizational level to a lower one.

Scholars define delegations in different ways;

 According to Dr. Kanthi Wijesinghe, [1] Senior Lecturer, National Institute of Education,
‘Delegation begins when the manager passes on some of his responsibilities to the
subordinate. Responsibility is the work assigned to an individual’.

 O.S. Hiner: “Delegation takes place when one person gives another the right to perform
work on his behalf and in his name, and the second person accepts a corresponding duty or
obligation to do what is required of him.”

 Douglas C. Basil: “Delegation refers to a manager’s ability to share his burden with others.
It consists of granting authority or the right to decision making in certain defined areas and
charging subordinates with responsibility for carrying through an assigned task.”

 Dunham and Pierce (1989) defined delegation as “the process managers use to transfer
formal authority from one position to another within an organization and, thus, to put
authority system they have designed into place” (p. 377)

Delegation is one of the most important functions of organizing. Delegation is the downward
transfer of authority from a superior to a subordinate [2]. This is important because the superior
cannot look after all the processes.

The opposite of effective delegation is micromanagement, where a manager provides too much
input, direction, and review of delegated work [1]. In general, delegation is good and can save
money and time, help in building skills, and motivate people. On the other hand, poor delegation
might cause frustration and confusion to all the involved parties.[1] Some agents, however, do not
favor a delegation and consider the power of making a decision rather burdensome

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Authority and Delegation

There is a limit up to which a person can supervise the subordinates. When the number of
subordinates increases beyond it then he will have to delegate his powers to others who perform
supervision for him. A manager is not judged by the work he actually performs on his own but the
work he gets done through others [3]. He assigns duties and authority to his subordinates and
ensures the achievement of desired organizational goals.

Delegation of Authority

Delegation of Authority is an organizational process wherein, the manager divides his work among
the subordinates and give them the responsibility to accomplish the respective tasks [5]. Along
with the responsibility, he also shares the authority, i.e. the power to take decisions with the
subordinates, such that responsibilities can be completed efficiently.

In other words, a delegation of authority involves the sharing of authority downwards to the
subordinates and checking their efficiency by making them accountable for their doings. In an
organization, the manager has several responsibilities and work to do. So, in order to reduce his
burden, certain responsibility and authority are delegated to the lower level, i.e. to the subordinates,
to get the work done on the manager’s behalf.

Under the delegation of authority, the manager does not surrender his authority completely, but
only shares certain responsibility with the subordinate and delegates that much authority which is
necessary to complete that responsibility

Principles of Delegation of Authority

Following are the guidelines that can be followed by the managers to practice an efficient
delegation:

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Authority and Delegation

result
expected

functional parity of
definition authority

principles
exception unity of
principle command

absoluten
scalar ess of
principle responsibi
lity

1. Principle of Functional Definition: An organization is comprised of different functional

departments, each contributing to the organizational goals and, in turn, have their specific
objectives. Thus, clearly defined objectives of each department, the expected results, the
specific activities to be performed and intradepartmental relationships help the manager to
determine the requirements of that specific position.
2. Principle of Parity of Authority and Responsibility: This principle states that the responsibility
and the authority co-exists. This means, if the subordinate is assigned certain responsibility, he
must be given some level of authority i.e. power to perform his responsibility. Thus, both the
responsibility and the authority shall be clearly defined to the subordinate, so that he knows
what he is required to do within the powers delegated to him.
3. Principle of Unity of Command: According to this principle, every subordinate should have a
single supervisor from whom he gets the authority and to whom he is solely accountable. This
means the subordinate should get the instructions from a single superior and perform those
responsibilities as assigned by him. In case, if the subordinate is required to report to more than
one boss, then there may be a conflict and delay in the managerial operations.

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Authority and Delegation

4. Principle of Absoluteness of Responsibility: This principle asserts that responsibility cannot

be delegated. This means even after delegating the authority to the subordinate to perform
certain tasks on the manager’s behalf; the manager will be solely responsible for the doings of
the subordinate. In other words, whatever actions being taken by the subordinate, the manager
will be accountable to his senior. Thus, the responsibility is absolute and remains with the
superior.
5. The Scalar Principle: There are clear lines of authority in the organization, i.e. who is under
whom. This helps the subordinate to know, who delegates the authority to him and to whom
he shall be accountable. Also to whom he shall contact in case things are beyond his control.
Thus, this principle asserts, that there should be a proper hierarchy in the organization.
6. Principle of Exception: According to this principle, the subordinate shall be given complete
freedom to perform his responsibilities under the purview of his authority. The manager should
not interfere in between his work and must allow him to do even if he commits mistakes. But
in some exceptional cases, the managers can interfere and even withdraw the authority
delegated to the subordinate.
7. Principle of result Expected: Thus, a manager must comply with all these principles of
delegation of authority to ensure that the task is accomplished in a manner it was intended

Types of delegation of authority

Delegation of authority can be classified in to the following types

General or Specific Delegation:

When authority is given to perform general managerial functions like planning, organizing,
directing etc., the subordinate managers perform these functions and enjoy the authority required
to carry out these responsibilities. The chief executive exercises overall control and guides the
subordinates from time to time.

The specific delegation may relate to a particular function or an assigned task. The authority
delegated to the production manager for carrying out this function will be a specific delegation.
Various departmental managers get specific authority to undertake their departmental duties.

Formal or Informal Delegation:

Formal delegation of authority is the part of organizational structure. Whenever a task is assigned
to a person then the required authority is also given to him. This type of delegation is part of the

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Authority and Delegation

normal functioning of the organization. Every person is automatically given authority as per his
duties. When production manager gets powers to increase production then it is a formal delegation
of authority. Informal delegation does not arise due to position but according to circumstances. A
person may undertake a particular task not because he has been assigned it but it is necessary to
do his normal work.

Lateral Delegation:
When a person is delegated an authority to accomplish a task, he may need the assistance of a
number of persons. It may take time to formally get assistance from these persons. He may
indirectly contact the persons to get their help for taking up the work by cutting short time of
formal delegation. When the authority is delegated informally it is called lateral delegation.

Reserved Authority and Delegated Authority:

A delegator may not like to delegate every authority to the subordinates. The authority which he
keeps with him is called reserved authority and the authority which is assigned to the subordinates
is delegated authority.

Features of Delegation of Authority

Some of the features of delegation of authority are

 Delegation means giving power to the subordinate to act independently but within the
limits prescribed by the superior. Also, he must comply with the provisions of the
organizational policy, rules, and regulations.
 Delegation does not mean that manager give up his authority, but certainly he shares some
authority with the subordinate essential to complete the responsibility entrusted to him.
 Authority once delegated can be further expanded, or withdrawn by the superior depending
on the situation.
 The manager cannot delegate the authority which he himself does not possess. Also, he
cannot delegate his full authority to a subordinate.
 The delegation of authority may be oral or written, and may be specific or general.
 The delegation is an art and must comply with all the fundamental rules of an organization.

Elements of Delegation of Authority

There are three major elements of delegation of authority:

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Authority and Delegation

Assignment of Responsibility

The responsibility means, assigning the work to an individual. The managers assign certain
responsibility to the subordinates for the completion of certain tasks on his behalf. An individual
has to apply all his physical and mental ability to get the task completed efficiently. Here it is to
be noted, that manager can only assign the responsibility, and in the case of the subordinate fouls,
the manager will be answerable to his seniors. Thus, the responsibility flows upwards.

There exists an interesting relationship between responsibility and authority, as a result of delegation
[4]. When we give an employee the responsibility for a task, we must also provide him with the
necessary authority. In other words, for effective delegation, the authority must complement
responsibility. If authority is more than responsibility it can lead to misuse. On the other hand, if
responsibility is more than authority it will lead to the incapability of completion of the allotted tasks.

Grant of Authority

To fulfill the responsibility, certain authority is delegated to the subordinate. Authority means the
power to take decisions. Hence, the manager along with the responsibility also delegates authority
to enable the subordinate to take decisions independently and accomplish the task efficiently.

The authority must be equal to the responsibility, this means, a certain level of authority is
delegated which is sufficient to complete the responsibility. The authority also flows upward, as
we go up in the scalar chain, the authority increases.

Creation of Accountability

Accountability means, to check whether the subordinates are performing their responsibilities in
an expected manner or not. The Accountability cannot be delegated which means, in the case of
non-completion of the task, the manager will only be held responsible for it, not the subordinates.
The accountability also flows upward, i.e. subordinates will be accountable to the manager and the
manager to his superior.

Thus, in order to get the task accomplished, the manager delegates some responsibility along with
the certain authority to his subordinate to exercise control and is held accountable for his operations
only to the immediate manager and not to the manager’s manager.

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Authority and Delegation

we can say that authority is delegated, responsibility is assumed and accountability is imposed. Also,
we derive responsibility from authority and accountability from responsibility.

Process of Delegation of Authority

The step, [7] which is followed when delegating authority, is the process of delegation. Normally
four steps are used in the process of delegation. It can be shown in the form of diagram.

Assignment of Duties to Subordinates: Before the actual delegation of authority, the delegator
must decide on the duties which he wants the subordinate or the group of subordinates to perform.
Here, the manager lists the activities to be performed along with the targets to be achieved, and
the same is spelled out to the subordinates. The tasks should be distributed in such a manner that
the subordinates are not unnecessarily overburdened and that each one is capable of efficiently
completing the assigned task.

Transfer of Authority to perform the duty: At this stage, an adequate authority is delegated to
the subordinate which is essential to perform the duty assigned to him. A manager must make sure;
that authority is strictly delegated just to perform the responsibility, as more authority may lead to
its misuse by the subordinate.

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Authority and Delegation

Creation of obligation: The person assigned the task is morally responsible to do his best since
he has willingly accepted these tasks. Obligation is a personal concern for the task. Even if the
subordinate gets part of the task done through other people, he must accept responsibility for timely
completion of the task as well as the quality of the output.

Creation of accountability: Being answerable to someone for your actions create accountability,
an obligation to accept the consequences, good or bad. According to Newman, Summer and
Warren, “by accepting an assignment, a subordinate in effect gives his superiors a promise to do
his best in carrying out his duties. Having taken a job, he is morally bound to complete it. He can
be held accountable for results.
These process of delegation will be complete only if following prerequisites are fulfilled [6].

1. Willingness to Delegate:
The first prerequisite to delegation is the willingness of the superior to part with his authority.
Unless the superior is psychologically prepared to leave his authority, delegation will not be
effective. If a superior is forced to delegate authority downward without his sweet will, he will try
to devise methods to interfere with the subordinate’s working.

2. Climate of Trust and Confidence:

There should be a climate of trust and confidence among superiors and subordinates. The
subordinates should be given enough opportunities or real job situations where they use their talent
and experience. In case they make some mistakes then superiors should guide and correct them.
The superiors should trust their subordinates and should not take them as their competitors.

3. Faith in Subordinates:
Sometimes the superiors do not delegate authority with the fear that subordinates will not be able
to handle the job independently. They are not confident of the qualities of subordinates and do not
want to take risks. The superior may be over conscious of his skill and competence with the result
that he is hesitant to delegate authority. The superiors should avoid this type of thinking and
attitude. They should have faith in their subordinates and should rather help them in learning the
job properly.

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Authority and Delegation

4. Fear of Supervisors:
There is often a fear among superiors that their subordinates may not over take them, once they
are given higher responsibility. This is a case of inferiority complex. The superiors may give many
logics for delegating authority but this fear is one of the important causes. The superiors should
avoid this type of thinking and have positive attitude towards subordinates.

Steps for Successful Delegation

Below is list of the steps for successful delegation

I. Clarify your goals and set priorities. You need to have set goals and to have prioritized
different projects. Be sure you know what needs to be done and how important it is.
II. Decide what goals and projects can be done by others. Take a realistic appraisal of what
you are trying to accomplish. Keep those projects close to you that are of the highest
priority.
III. Select the right person. Match the demands and skills of a project to individual skills,
interests, and talents. If you need someone to produce a flyer, give the project to someone
who knows how to make them and who has an interest in them.
IV. Organize the tasks being delegated. Examine what tasks need to be done for a project to
be successful and make appropriate decisions regarding who is working on it, the type of
equipment that may be needed, finances, and facilities.
V. Give clear instructions and request feedback. Review exactly what you are going to tell
someone to make sure there aren’t various interpretations that could cause confusion. After
giving the instructions, have the person repeat back what their understanding is of their
responsibilities. This helps clarify roles, jobs, and expectations. Here is a brief story to
highlight this step.
VI. Set deadlines and ask for reports. Tell people what the deadline for their project or
responsibility is. Make sure that everyone understands exactly what needs to be done for
the deadline. If you tell someone the newsletter needs to be ready by November 25th, they
may have the newsletter ready for you to review by that date but in reality, you wanted to
mail it on the 25th. You need to state clearly the deadline dates for when you want to
review the newsletter, when it should go to the printer, and when it should be mailed.

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Authority and Delegation

Merits and demerits of Delegation of authority

Some of the advantages of delegations of authority are:

 Effective Management: Delegation provides a breathing space to managers by sharing their

workload. As a result, managers can concentrate on tasks with higher priority. Further,
freedom from routine work allows for exploration of new ideas.

 Quick Decisions: The process of delegation makes it possible to push decision. Making to the
lowest level where information, competence and willingness to make decisions are available.
Decisions can be made right away at or near the center of operations as soon as a deviation
occurs or the situation demands.
 Employee Development: With the help of delegation, we assign new responsibilities to
employees. This allows for them to work on a domain which is different from the monotonous
routine work, helping them to develop new skills and discover hidden talents.
 Motivation of Employees: Through the process of delegation, superiors entrust suitable
subordinates with the tasks that are assigned to them. This not only leads to the
development of talent but also has various psychological benefits. This is because, the faith
and trust displayed in the subordinate build his confidence and self-esteem, which
ultimately drives him to work harder.
 Facilitation of Growth: As mentioned, delegation provides employees with opportunities
to develop and effectively trains them as better decision makers and managers. This further
aids in the process of expansion of an organization, as it already has the suitable workforce
which is competent enough.
 Management Hierarchy: Delegation establishes the superior-subordinate relationship.
Also, it directly relates to the extent and flow of authority. This is because authority
determines who has to report to whom.

 It leads for Specialized Service: Since the work is assigned to the persons who have
specialized knowledge and expertise, it helps for specialized services. For example, sales may
be delegated to the sales manager, marketing-to-marketing manager, finance-to-finance
manager.

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Authority and Delegation

Some of the demerits of delegation of authority are

 Central management is far removed from the actual operations where the decisions are made
so that it becomes difficult to pinpoint major problems when they occur because decisions are
made by many subordinates.
 The second problem may lie in the area of coordination. If coordination among these many
subordinates is not adequate, then confusion may result and it may become difficult to exercise
control over procedures and policies.
 It may be difficult to perfectly match the task with the capability of the subordinate.

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Authority and Delegation

References

1. Adapted from Phi Theta Kappa, Leadership Development Studies, 1995. Phi Theta, Inc:
Jackson, Mississippi.
2. http://www.yourarticlelibrary.com/delegation/delegation-definition-characteristics-
elements-and-types/53271
3. http://www.yourarticlelibrary.com/delegation/delegation-definition-characteristics-
elements-and-types/53271
4. https://businessjargons.com/delegation-of-authority.html
5. https://iedunote.com/delegation-of-authority
6. https://en.wikipedia.org/wiki/Delegation
7. https://www.toppr.com/guides/business-studies/organising/delegation/
8. Reginald L. Bell ‘Delegation, Authority and Responsibility: Removing the Rhetorical
Obstructions in the Way of an Old Paradigm’ Prairie View A&M University

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