Arya is an overburdened manager of XYZ Ltd

CBSE Class 12 CBSE Class 12 Business Studies
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1

Arya is an overburdened manager of XYZ Ltd. He wants to take help from his subordinates. How? Explain the three important points, which he should keep in mind while taking such help.
or
List the elements of delegation of authority.

2

Yes, he can take help from his subordinates. As he is overburdened, he can reduce his work by opting the concept of delegation of authority and responsibility.
Elements of delegation of authority :

  1. Authority
    The term authority implies the right of an individual to take decisions and to command his subordinates.
    The concept of authority arises from the position in the scalar chain, which is highest at the top and declines as we move down the hierarchy.Thus, it flows from top to bottom. It helps to maintain order in the organisation and determining superior subordinate relationship.
  2. Responsibility
    It is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior subordinate relationships because the subordinate is bound to perform the duty assigned to him. Thus, it flows upward i.e. a subordinate is always responsible to his superior. Granting authority is necessary to create, responsibility and facilitates its fulfilment.
  3. Accountability
    It implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability. "
    It is the obligation to carry out responsibility and exercise authority. It flows upwards as subordinate will be accountable to his superior, generally enforced through regular feedback.
    To sum up, we can say that the process of delegation starts with assignment of duties (responsibility), followed by giving necessary authority and once the authority is given, the superior creates accountability for the subordinates. However for effective delegation, authority granted must commensurate with the responsibility i.e. equal and not more or less authority must be given. As more authority will lead to misuse, whereas lower grant of- authority will make the person ineffective to perform the assigned job.