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State Any Four Points Which Highlight the Importance of Delegation in an Organisation. - Business Studies

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Questions

State any four points which highlight the importance of delegation in an organisation.

With the help of any four points, explain the importance of 'delegation' in an organisation

Explain, with the help of any four points, the importance of Delegation' in an Organization.

Solution

Delegation refers to the act of transferring authority to lower levels in the hierarchy. For effective and smooth functioning, delegation is important for an organisation. Delegation helps in lowering the burden of top-level managers and thereby enables them to focus on other priority areas. Moreover, with the delegation, the area of operations can be easily extended. While on one hand, it is helpful for managers, on the other hand, it is beneficial for subordinates in the sense that it provides them with better opportunities for growth and development

Points explaining the importance of delegation for effective organising:

1) Managerial Efficiency: With delegation, the burden of the top managers gets reduced to a large extent. They can focus on priority areas (such as research and innovation),  while the routine work is handled by subordinates independently. Thus, the efficiency of managers is increased.

2) Employee Proficiency: Delegation proves beneficial to subordinates as well in the sense that it provides them with the opportunity to work independently, apply their own creativity and skills. This helps in their growth and development.

3) Motivation: Delegation of authority proves psychologically beneficial to subordinates. It motivates them to work to the best of their efficiency. It helps in developing a feeling of trust and commitment between superior and subordinate.

4) Growth: With delegation, employee proficiency is increased. In other words, it helps in preparing future managers to take up leading positions and greater responsibilities. This supports the growth and expansion of the organisation.

5) Hierarchical Structure: The superior-subordinate relationship in an organisation is determined by delegation. In other words, it helps in determining the reporting relationships in the organisation.

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Concept of Delegation of Authority
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2014-2015 (March) All India Set 2
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