TOPIC 3: OFFICE ORGANIZATION

Specific objectives

By the end of the topic the trainee should be able to

. Explain the meaning of organization

. Explain the principles of organization

. Discuss delegation of authority

. Discuss the span of control in an organization

. Discuss centralization and decentralization of office services

MEANING OF OFFICE ORGANIZATION

It’s an element of management and it’s concerned with grouping of activities in a way that
the organization’s objectives are achieved. The purpose is to create arrangement of positions
and responsibilities through and by means with which the work can be carried out. Span of
Control means the number of subordinates that can be managed efficiently and effectively by
a superior in an organization. It suggests how the relations are designed between a superior
and a subordinate in an organization.

It’s the number of subordinates that can be managed efficiently and effectively by a superior
in an organization. It suggests how the relations are designed between a superior and a
subordinate in an organization.

It’s the process of combining the work which individuals or groups have to perform with
facilities necessary for its execution, that the duties performed provide the best channels for
efficient, systematic, positive and coordinated use of available effort.

Principles of Organisation:
There is a need to follow certain principles in order to formulate and develop a sound and
efficient organisation structure.

1. Principle of Objectives:
The formulation of organisation structure is very much influenced by the objectives of
the business concern, hence should be clearly stated. This helps the management in
formulating the organisation structure and also in achieving the enterprise objectives
with minimum cost and effort.
2. Principle of Specialisation/division of work
The organisation structure should be formulated in such a way that the activities of the
enterprise are divided according to different functions and the same are assigned to
persons according to their specialization.
3. Principle of Span of Control:
The span of control should be minimum because there is a limit to the number of
persons that can be effectively supervised by one boss. The number of sub-ordinates
 may be few or many. This depends upon the ability, the job, the complexity of the
duties of the sub-ordinates, the nature and importance of the work to be supervised
etc.
4. Principle of Exception:
Only exceptionally complex matters should be referred to the executives for their
decision and matters of routine nature should be decided by the sub-ordinates
themselves. This is necessary because the executive at a higher-level instead of
spending their time for deciding routine matters can concentrate on more important
matters.
5. The Scalar Principle/chain of command
To make management effective, there should be a clear line of authority. The line of
authority from the Chief Executive at the top of the enterprise to the first line at the
bottom must be clearly stated.
6. The Principle of Authority:
It is the tool by which a manager is able to create an environment for individual
performance. So the responsibility and authority of each manager and supervisor
should be clearly defined. Authority that is given to the manager enables him to
accomplish the objectives of the enterprise. Hence, the authority of each manager
should be clearly defined and it should be equal to the responsibility entrusted to him.
7. The Principle of Unity of Command:
Each subordinate should have only one superior and dual sub-ordination should be
avoided. Dual sub-ordination may result in indiscipline of sub-ordinates, under
mining of authority, disorder, delay and confusion. This principle avoids the
possibility of conflicts in instructions and develops the feeling of personal
responsibility for the work.
8. Principle of Delegation:
The organisation structure should provide for the delegation of authority at every
level. The authority delegated should be equal to responsibility so as to enable the
concerned person to accomplish the task assigned to him by his superior.
9. Principle of Responsibility:
The superior should not be allowed to avoid responsibility be delegating authority to
his sub-ordinates. It means that the superior should be held responsible for the acts of
his sub-ordinates to whom he has delegated authority.
10. Principle of Flexibility:
The organisation structure should be such which should be adaptable to the changing
circumstances. There should be a possibility, if circumstances warrant, for expansion
and replacement without disrupting the basic design of the structure.

11. Principle of Simplicity:

The organisation structure should be simple with a minimum number of levels. If the
organisation structure has a large number of levels, the problem of effective co-
ordination and communication may arise.
 12. Principle of Continuity:
The organisation structure should be serviceable for a long time. This is possible if it
is dynamic and capable of adopting itself to the needs of changing circumstances.
13. Principle of Unity of Direction:
It means, for a group of activities having the same objective, there should be one plan
and one objective. This facilitates verification and co-ordination of activities and also
completion of task as per the schedule.
14. Principle of Efficiency:
The structure that is formulated should enable the business concern to function
efficiently and achieve its objectives with minimum cost and effort.
15. The Principle of Balance:
In every organisation structure there is need for balance. For effective grouping and
assigning activities, this principle calls for putting balance on all types of factors—
human, technical as well as financial.
16. Communication:
The organisation should have a communication system which would pass on all
relevant information to all concerned so that decision-making becomes an easy and
acceptable process. In the absence of complete information a sound decision cannot
be taken.
17. Loyalty to the Organisation:
Reserved loyalty does no good to an organisation. Therefore, as far as possible
decisions should be ‘Laudable’ and full proof.
18. Suitability of a Decision:
A decision should be reasonably sound and appropriate to the circumstances in which
it has been taken. Decision always depends on information’s compiled and received.
Hence, a decision should be in the best interest of the enterprise and personnel
affected by such decisions.

Factors Affecting Span of control:

a) Capacity of Superior:
Different ability and capacity of leadership, communication affects management of
subordinates.
b) Capacity of Subordinates:
Efficient and trained subordinates affect the degree of span of management.
c) Nature of Work:
Different types of work require different patterns of management.
d) Degree of Centralization or Decentralization:
Degree of centralization or decentralization affects the span of management by
affecting the degree of involvement of the superior in decision making.
e) Degree of Planning:
Plans which can provide rules, procedures in doing the work higher would be the
degree of span of management.
f) Communication Techniques:
 Pattern of communication, its means, and media affect the time requirement in
managing subordinates and consequently span of management.
g) Use of Staff Assistance:
Use of Staff assistance in reducing the work load of managers enables them to
manage more number of subordinates.
h) Supervision of others:
If subordinate receives supervision form several other personnel besides his direct
supervisor. In such a case, the work load of direct superior is reduced and he can
supervise more number of persons.

Span of control is of two types:

1. Narrow span of control:

Narrow Span of control means a single manager or supervisor oversees few
subordinates. This gives rise to a tall organizational structure.

2.
 Advantages:
 Close supervision
 Close control of subordinates
 Fast communication

Disadvantages:

 Too much control

 Many levels of management
 High costs
 Excessive distance between lowest level and highest level
3. Wide span of control:
Wide span of control means a single manager or supervisor oversees a large number
of subordinates. This gives rise to a flat organizational structure.
Advantages:
 More Delegation of Authority
 Development of Managers
 Clear policies

Disadvantages:

 Overloaded supervisors
 Danger of superiors loss of control
 Requirement of highly trained managerial personnel
 Block in decision making

Centralisation of Office Services

Meaning of Centralisation:
Every enterprise has its own objects, either trading or non-trading. According to the nature of
the objects an organisation needs to perform some functions and for each function there is a
department. Functions cannot be done in a vacuum. Every function needs some services and a
place for functioning.

The office fulfils both the needs. The services consist of communication, computation, and
recording. When all the common services are done jointly by the same people for all the
departments, there is centralisation of office services. For example, the telephone is needed
by every department.

If there is one telephone line having internal branches with P.B.X. or P.A.X. system it is
enough. There is no need for having a separate telephone connection for each department.
That part of an office where centralised functions are done is called the General Office and
the secretary is normally in charge of that. Another good example is the Cash Department.

When the office services are separated and each functional department like production,
marketing, etc. has its own office services then there is a case of decentralisation. For
example, each department has its own typists instead of having a typists’ pool. All the files
may be kept at one place in a centralised manner.

Need of Centralization:
Centralisation and decentralisation are tendencies. It is a matter of policy whether the former
or the latter system will be followed. In fact, there is a very little scope for a choice between
the two. Certain services need be centralised for the sake of convenience and economy while
certain services can be better decentralised.

Centralisation has great advantages but decentralisation is not totally bad. There may be a
typists’ pool for typing out letters of different departments but at the same time the secretary
requires the exclusive services of a typist so that he can have the confidential matters typed
out.

All files cannot be preserved in a centralised manner so that anyone can look into them. It is
desirable to have an ideal combination of both, centralisation and decentralisation. There are
some advantages of centralisation which are, more or less, the disadvantages of
decentralisation and vice versa.

Advantages of Centralization:
There are many advantages of centralisation.

a. Specialisation:
Since each employee does a particular type of work repeatedly, may it be for different
departments, he becomes a specialist in that line of work and by that his efficiency is
enhanced.
b. No Duplication of Work:
In case of decentralisation every department has to do the same types of functions but
if there is centralization a group of employees does the same nature of work for all the
departments. If there is a typewriter for each department then for each department
there are expenses for paying the salary of the typist, oiling and cleaning of its
typewriter, etc.
c. Economy:
With the avoidance of duplication of work, there is economy too. If there are four
departments then under decentralization four typists have to be employed. But if there
is centralisation and there is a typists’ pool then probably two or maximum three
typists will be enough. Less capital will be required as the number of machines to be
purchased will be less as well as there will be less payment of salaries.
d. Balanced Distribution of Work:
The volume of same kind of service to every department is not the same. Some
department may have to prepare more letters’ than another department. Therefore, if
there is decentralisation then a typist of one department has to do more labour than
that of the other. But, if there is a typists’ pool, the work can be distributed more or
less evenly among the typists. There is neither too much pressure on one typist and
one machine nor there is idle capacity in the others.
e. Standardisation and Mechanization:
 As the same work has to be repeated a number of times the work can be standardised
and can be simplified. More it is simplified greater is the possibility of using
machines.
f. Better Supervision and Control:
Supervision and control will be more effective and economic because:
 The number of employees is reduced;
 Most of the people sit together as there is open type of lay-out;
 There is less number of supervisors too and so they can be controlled better.
g. Less Equipment:
Less number of equipment, particularly furniture and machines, will be required
reducing (mainly capital) expenditure and demand for space.

Disadvantages of Centralisation:
There are some disadvantages of centralisation. (These are the advantages of
decentralisation.) They are:

a. Wastage of Time:
As for every service help of the general office has to be taken, much time is wasted. A
letter is to be sent to the typists’ pool for typing and this will be done only when in
turn it comes to the hand of a typist.
b. Loss of Secrecy:
The secrecy of any work of a department is lost as the different steps are processed
through general office.
c. Technical Work Hampered:
Some acts of a particular department require some technicalities which may not be
available in general office. For example, any typist in the typists’ pool may not be
able to type a complicated financial statement required by the finance department.
d. Lack of Loyalty:
No department can have its own loyal employees rendering office services. The staffs
of the general office have no special attachment to any department. It is difficult to get
some urgent work done. Much of the advantages may be lost if there is absence of
proper coordination and control in the office.

Decentralisation of Office Services

Meaning of Decentralization
Decentralisation refers to tire systematic effort to delegate to the lowest levels all authority
except that which can only be exercised at central points. Decentralisation means the division
of a group of functions and activities into relatively autonomous units with overall authority
and responsibility for their operation delegate to time of each unit. Decentralisation is simply
a matter of dividing up the managerial work and assigning specific duties to the various
executive skills.”

Thus, decentralisation is concerned with the decentralisation of decision-making authority to

the lower levels in managerial hierarchy.
The degree of decentralisation is determined by:

a. Nature of the authority delegated,

b. How far down in the organisation it is delegated.
c. How consistently it is delegated.

Advantages of Decentralisation:
1. Reduces the burden on top executives:
Decentralisation relieves the top executives of the burden of performing various
functions. Centralisation of authority puts the whole responsibility on the shoulders of
an executive and his immediate group. This reduces the time at the disposal of top
executives who should concentrate on other important managerial functions. So, the
only way to lessen their burden is to decentralise the decision-making power to the
subordinates.
2. Facilitates diversification:
Under decentralization, the diversification of products, activities and markets etc., is
facilitated. A centralised enterprise with the concentration of authority at the top will
find it difficult and complex to diversify its activities and start the additional lines of
manufacture or distribution.
3. To provide product and market emphasis:
A product loses its market when new products appear in the market on account of
innovations or changes in the customers demand. In such cases authority is
decentralised to the regional units to render instant service taking into account the
price, quality, delivery, novelty, etc.
4. Executive Development:
When the authority is decentralised, executives in the organisation will get the
opportunity to develop their talents by taking initiative which will also make them
ready for managerial positions. The growth of the company greatly depends on the
talented executives.
5. It promotes motivation:
To quote Louis A. Allen, “Decentralisation stimulates the formation of small cohesive
groups. Since local managers are given a large degree of authority and local
autonomy, they tend to weld their people into closely knit integrated groups.” This
improves the morale of employees as they get involved in decision-making process.
6. Better control and supervision:
Decentralisation ensures better control and supervision as the subordinates at the
lowest levels will have the authority to make independent decisions. As a result they
have thorough knowledge of every assignment under their control and are in a
position to make amendments and take corrective action.
7. Quick Decision-Making:
Decentralisation brings decision making process closer to the scene of action. This
leads to quicker decision-making of lower level since decisions do not have to be
referred up through the hierarchy.
Disadvantages of Decentralisation:
Decentralisation can be extremely beneficial. But it can be dangerous unless it is carefully
constructed and constantly monitored for the good of the company as a whole.

1. Uniform policies not followed:

Under decentralisation, it is not possible* to follow uniform policies and standardised
procedures. Each manager will work and frame policies according to his talent.
2. Problem of Co-Ordination:
Decentralisation of authority creates problems of co-ordination as authority lies
dispersed widely throughout the organisation.
3. More Financial Burden:
Decentralisation requires the employment of trained personnel to accept authority, it
involves more financial burden and a small enterprise cannot afford to appoint experts
in various fields.
4. Require Qualified Personnel:
Decentralisation becomes useless when there are no qualified and competent
personnel.
5. Conflict:
Decentralisation puts more pressure on divisional heads to realize profits at any cost.
Often in meeting their new profit plans, bring conflicts among managers.

Similarities between Centralization and Decentralization

The central government maintains a certain degree of control. In fact, in
decentralized countries like China, local authorities are under close supervision of
the central government and their powers are limited;

Both centralization and decentralization are not limited to the governance. The two
terms can refer to centralization and decentralization of political entities,
administrative bodies, security forces, economic authorities, and social groups; and

Both systems can be effective in promoting economic growth and political stability.
 Distinction between centralization and decentralization
Basis for Centralization Decentralization
Comparison
Meaning The retention of powers and
The dissemination of authority,
authority with respect to planning
responsibility and accountability to
and decisions, with the top
the various management levels
management
Involves Systematic and consistent
Systematic dispersal of authority.
reservation of authority.
Communication
Vertical Open and Free
Flow
Decision Making Slow Comparatively faster
Advantage Proper coordination and Sharing of burden and
Leadership responsibility
Power of decision Multiple persons have the power of
Lies with the top management.
making decision making.
Implemented Inadequate control over the Considerable control over the
when organization organization
Best suited for Small sized organization Large sized organization

Delegation of Authority
It is sharing of work and authority, between a manager and his subordinates. The process of
delegation enables a person to assign work task to his subordinate and give them necessary
authority to accomplish it successfully. It helps in completing the work in time, reduces the
workload of managers and motivates and develops subordinates.

Therefore, delegation is a process that enables a person to assign a work to others and
delegate them with adequate authority to do it.

If all organisational activities, strategic and routine, could be managed by the top executives,
the need for formal organisation structure with functional departments, staffed with people of
different calibre, carrying out different activities would not have arisen. Since it is not
possible, because of physical and mental limitations, for one person to perform all activities
with respect to all functional areas, it becomes necessary that he gives part of his work load to
subordinates along with commensurate authority to carry out the assigned task.

Every type of task cannot be assigned to subordinates. Managers have to choose between
tasks that can be performed by subordinates and those which have to be carried out by them
only. Thus, the entire workload is divided into units, part is assigned to subordinates with
authority to carry out the assigned task. This division of work and its assignment to people
down the scalar chain is called delegation. “Delegation is a process the manager uses in
distributing work to the subordinates.”

Management is the art of getting things done through others which is possible if they delegate
the authority and responsibility. Delegation is an important skill that manager must have to
effectively manage his organisation. Allen puts it very aptly, “How well a manager delegates
determines how well he can manage.” Delegation creates healthy atmosphere in the
organisation. Companies identify capabilities of managers by judging their skills in how
effectively they get the work done by the process of delegation.

An individual is only one unit of manpower. Single-handed, he can accomplish only so much
in a day. The only way he can achieve more is through delegation through dividing his load
and sharing his responsibilities with others.

It is the assignment of part of a manager’s work to others along with both the responsibility
and the authority necessary to achieve expected results

Delegation is the process by which a manager assigns tasks and authority to subordinates who
accept responsibility for those jobs.”

Features of Delegation of Authority

1. Delegation is a process – Managers delegate tasks to subordinates in a sequential
order of steps.
2. On-going process – Delegation is a continuous process. Managers continue to
delegate tasks and get them delegated by their superiors to achieve the organisational
goals.
3. It is an art, not science – When delegator delegates to subordinates, it does not
necessarily mean that subordinates will perform those tasks well. There is no cause
and effect relationship between the task assigned and their actual performance.
Delegation is, thus, not a science. It is the art of how and what manager delegates to
subordinates.
4. Delegation of authority and not accountability – Managers can only delegate work
and authority to perform that work to subordinates. Delegation does not mean that
managers are not accountable to their superiors for the task assigned to subordinates.
They remain accountable for the tasks assigned to subordinates and are answerable to
their superiors for its performance.
4. Necessary organisational activity – Managers cannot avoid delegation. They cannot
perform all the tasks themselves. They have to master the art of delegation that is,
how to delegate and what to delegate. Corporate performance is judged by how good
the managers are in getting the work done through others by the process of delegation.
5. It has different forms – Delegation can take different forms. It can be downward,
upward or lateral.

Forms of Delegation of Authority

1. Top to Bottom Delegation
The process of delegation where superiors delegate workload to subordinates is top to
bottom delegation.
2. Bottom to Top Delegation
This form of delegation recognises the importance of informal groups in the formal
organisation structures. The force of attraction of group members is so strong that if
they have to obey the superior or group members, they may choose the latter.
Managers have to be careful in issuing orders/directions to subordinates to carry out
 the delegated tasks. They should motivate subordinates as members of the group and
not individual members. According to Allen, “to the extent that the manager
convinces the members of the group that their needs, his own, and those of the
company coincide, he can motivate them to produce according to the standards he
sets.”
3. Lateral Delegation
When managers delegate authority to subordinates in the hierarchy, subordinates
further delegate the tasks informally to people at the same level in other units. For
example, if general manager of sales department asks sales manager to compile the
figures of sales and sales personnel for the month of January, the sales manager will
seek the assistance of finance manager and personnel manager. Thus, authority and
responsibility delegated to sales manager is shared by him with managers of other
departments working at the same level. This is a form of lateral delegation. Peer
groups in this case come together and carry out the task as a team.

Steps Involved in the Process of Delegation:

1. Step # 1. Determine the Goals
The first step of delegation is to establish the goal or objective of the position/post so
that the person determines the need for delegation. If delegation is initiated in the
sales department, the objective should be made clear; sales promotion or sales
retention.
2. Step # 2. Define Responsibility
Once requirement of the job is defined, responsibility of different individuals is
determined in terms of tasks assigned to them. This helps them to know their bosses
and subordinates to whom they can issue instructions.
3. Step # 3. Define Authority
The job having been assigned, authority is given so that people can discharge
responsibilities related to that job.
4. Step # 4. Motivate Subordinates
The duty of manager does not end by delegating authority and responsibilities to
subordinates. He makes sure that subordinates willingly contribute to the job assigned
so that organisational goals can be optimally achieved. Managers motivate the
subordinates to work with zeal and enthusiasm. They use financial and non-financial
(participative decision-making, recognition etc.) incentives to motivate the
subordinates.
5. Step # 5. Hold Accountability
Whatever the nature and extent of delegation, managers continuously monitor the
activities of subordinates to review their progress and provide guidance, whenever
necessary. They hold them accountable for the work assigned but remain ultimately
accountable to their superiors for successful completion of the task and its
coordination with the overall organisational work.
6. Step # 6. Train Subordinates
 Despite the authority commensurate with responsibility, subordinates may not be able
to effectively carry out the delegated tasks. Managers, therefore, organise training
programmes to enhance their knowledge on the tasks assigned.
7. Step # 7. Establish Control
Specific standards of performance are framed so that subordinates can assess their
performance against standards, control their activities and coordinate them with goals
of the organisation.

Aspects of Delegation:
1. Assignment of Responsibility
A manager assigns a certain function, work or duty to his subordinate for
performance. This is termed as assignment of responsibility. It is a creation of an
obligation to perform the assigned duties. Responsibility arises from the superior-
subordinate relationship. Responsibility is spoken of as being created rather than
delegated.
2. Grant of Authority
A manager grants authority, i.e., rights and powers to be exercised by the
subordinate. Authority is derived from responsibility. It is the right to perform
certain assigned work or duties. It also implies power, i.e., ability to do certain
things. It is the power to order or command and is duly delegated or transferred from
the superior to the subordinate in order to enable him to discharge his or her
responsibility for the assigned work or duties. The superior may transfer certain
rights such as the right to spend money, to direct the work of others, to use materials,
and to take other necessary steps to fulfil the duties or responsibilities. There must
be a balance between responsibility and authority for organisational efficiency and
economy. The superior should delegate sufficient authority to do the assigned work.
We consider authority as the institutionalised right to make decisions and issue
orders on behalf of the organisation.
3. Creation of Accountability
Just as responsibility arises from work, and authority arises from responsibility,
accountability is logically derived from authority. Once, a subordinate is entrusted
with responsibility to perform certain jobs and he or she is given sufficient authority
to perform the assigned work, the final phase in delegation (or basic organisation
relationship) is holding the subordinate answerable or accountable to his or her
superior for fulfilling the assigned responsibility, i.e., obligation to perform the
assigned duties. Accountability is defined as a system of management which assigns
certain responsibilities to line or staff personnel and, in turn, expects them to be
accountable or answerable for the accomplishment of stated objectives within their
area of responsibility. Please note that authority flows downwards, whereas
accountability flows upwards through the chain of command or through the
organisation pyramid. Each manager from the bottom is held accountable to his or
her superior. The downward flow of authority and upward flow of accountability
must have parity or equality at each position in the management hierarchy. Again a
subordinate is accountable to only one immediate superior and no more, i.e., one
 superior to each subordinate. Single accountability improves discipline and promotes
coordination. These three attributes or components of delegation (Responsibility,
Authority, and Accountability) are like three legs of a stool. Each depends on the
others. No two can stand alone. If one leg of a stool is weaker or shorter, the stool of
delegation will be unstable. In effective delegation, all the three attributes are equal,
inter-related and inter-dependent. They are all equally important. In practice it is
impossible to split the process of delegation. For instance, assignment of
responsibility (work or duties) is meaningless in absence of authority because it
simply cannot be performed. Once a manager has assigned responsibilities to his
subordinate, and has delegated authority to him, accountability has to be exacted
from the subordinate.
i. Responsibility
The obligation of a subordinate to whom a superior has duly assigned a duty or
a task to perform the services needed’. Thus it means an obligation to carry out
certain activities with accountability for performance. In organisations,
responsibility is the duty to perform tasks, functions, or assignments by a
member of an organisation.
ii. Authority
Managerial authority is the right to act, to command, to motivate, to direct
others and to exact obedience. It is also the right of making decisions, giving
orders and seeing that they are carried out. Please note that the authority is
delegated from above, but to be meaningful, it needs acceptance from below,
i.e. by your subordinates. A manager has the authority (right) to do something
and also the power (ability) to do it. It is presumed that a manager is granted
equal authority and power. Then only he can accomplish performance of work
through others and achieve planned objectives.
iii. Accountability
Accountability is the liability created for the use of authority. It is the
answerability for performance of the assigned duties. It is concerned with the
fact that each person who is given authority and responsibility must recognize
that his boss will judge the quality and the result of his performance.

Each member in an organisation is obliged to report to his superior how well he has
exercised his responsibility and the use of his authority delegated to him. Account-
ability is always upward.

Authority, power, responsibility and accountability for every position and person in
the organisation must be balanced if we desire a stable equilibrium. Manager must
seek such a balance for himself and also for his subordinates.
Methods of delegation
1. Administration Delegation
When a few of the administrative functions are delegated to sub-ordinate staff, it is called
administrative delegation. These functions are generally of routine nature, e.g. to
maintain discipline, to supervise the work, to recommend for the reward or punishment
etc.
2. Geographical Delegation
When the work of enterprise is located at different distant places it is not possible for an
executive to manage the whole affairs single handed. He then proceeds to delegate his
authority to those who are posted at the places where physically he cannot be present
round the year. This is known as geographical method of delegating the authority.
3. Functional Delegation
When the enterprise is organized on the basis of functional organisation, the delegation
of authority is also done on the functional basis. All the heads are given to manage their
departments according to their skill, knowledge and experience of course; they are
accountable to the Chief Executive.
4. Technical Delegation
This method of delegation authority is based on technical knowledge and skill. Here the
authority is delegated in order to get the advantages of expert and experienced hands and
their technical skill.

Effective Delegation
It takes two parties for delegation to be effective-a superior willing to delegate and give his
subordinates real freedom to achieve delegated tasks and a subordinate willing to assume
added responsibilities, develop solutions to problems independently and learn through the,
painful though, process of trial and error.

The barriers to delegation, as we have seen, are purely psychological and can be reduced
through improved communication between managers and subordinates leading to better
understanding. The following guidelines to help managers delegate effectively;

 The Subordinate:
1. Select subordinates in the light of the task to be performed. Provide guidance,
help and information to them. Maintain open lines of communication.
2. Do not be overawed by the errors committed by subordinates. Remove the
elements of fear and frustration. Allow them to learn through mistakes.
Require completed work.
3. Allow the subordinates to see the big picture. The subordinate needs to know
why his work is both necessary and important.
4. Provide sufficient authority to subordinates for accomplishing goal
assignments.
5. Reward acceptance of responsibility. Perspiration does not go very far without
a little inspiration.
 The Organization Culture:
 1. Create an atmosphere of trust and risk taking.
2. Use constructive criticism to help the subordinate grow.
3. All delegations should be in writing.
 The Authority Structure:
1. Equate authority with responsibility; too much authority may be abused; too
little authority may frustrate the subordinates.
2. Restrain any inclination to override, interfere with or undermine the
delegation.
 The Control Systems:
1. Prevent illegitimate usurpation of authority by establishing broad controls.
2. Provide standards so that the subordinate can measure and evaluate his
performance against the standard.

An Effective Delegator Should:

i. Give other peoples’ ideas a chance.

ii. Allow subordinates to take decisions independently.
iii. Be a patient counsellor and not a ‘hovering hawk’.
iv. Repose confidence and trust in subordinates.
v. Know how to use controls judiciously.

Factors Affecting Delegation of Authority

The Delegator’s Aspect: A manager may not delegate authority effectively when he has a
love for authority, fear of sub-ordinates advancement, fear of his shortcomings being exposes
and a negative attitude towards employees. In addition, the personality traits of a manager
and experience may also effect the delegation of authority.

i. Love for Authority

An autocratic manager is not very likely to delegate authority to his subordinates such
a manager likes to make his importance felt by forcing subordinates to approach him
often to get inner decisions approved. A manager may also not delegate authority to
his sub-ordinates if he likes to maintain a tight control over his activities.
ii. Fear of Sub-Ordinates’ Advancement
The fear of a sub-ordinate’s advancement also affects the manager’s ability to
delegate authority effectively. A manager may not delegate authority effectively due
to two reasons. Firstly, superior may fear that the competence and the good
performance of the sub-ordinate might earn him a promotion as a result of which, he
would lose good sub-ordinates. Secondly, the superiors may also fear that the sub-
ordinates may excel in his job to such an extent that he may become a contender for
the manager’s position, status and title.
iii. Fear of Exposure
A superior may not delegate adequate authority fearing that his managerial
shortcomings would be exposed if he does. This generally is the case when the
procedures and practices followed by the superior are not very good. Thus, the fear of
 exposure of their shortcomings may make managers ineffective in delegating
authority.
iv. Attitude towards Sub-Ordinates
Delegation of authority requires a certain amount of trust between the superior and his
sub-ordinate. Therefore, the superior attitude towards his sub-ordinates and the sub-
ordinates attitudes towards the superior are important for delegation. Lack of
confidence in sub-ordinates is a major factor that effects delegation of authority. The
lack of confidence may be justified if the sub-ordinates are also lacking in knowledge
and skills.
v. Personality Traits and Experiences of the Superiors
The personality traits and experiences of a superior affect the way in which he
delegates authority to his sub-ordinates. For instance a superior who has been
delegated adequate authority in his or her own career or who has worked up his way
up from the ranks, is likely to delegate authority. On the other hand, autocratic
managers are less likely to delegate authority.

The Delegate’s Aspect:

i. Fear of Criticism
The sub-ordinate may not accept delegated tasks if he suspects that the credit for
success will be taken by the boss and criticism for failure will be directed toward him.
The fear of criticism also makes a sub-ordinate reluctant to accept authority.
ii. Lack of Information and Resources
Sub-ordinates are reluctant to accept delegation when they do not have adequate
information and resources, when tasks are not clearly defined or when adequate
authority is not delegated. When instructions are vague and resources are scarce, sub-
ordinates are unlikely to do a good job and their enthusiasm for delegated work
dwindles.
iii. Lack of Self-Confidence
Sometimes, sub-ordinates may refuse to take up delegated tasks as they may lack
confidence in themselves. Fear of criticism and/or dismissal from service for
committing mistake prevents them from accepting additional responsibilities.
iv. Absence of Rewards and Incentives
Many sub-ordinates may be unwilling to take up additional responsibilities and
pressure unless they receive some rewards and incentives for satisfactory
performance. Therefore, all companies should develop a system of rewards and
incentives.
v. The Organizational Aspect
Apart from the personal factors of delegators and delegants, delegation of authority
also depends on certain organizational aspects. The various organizational factors that
affect the delegation of authority include the organization’s policy towards
centralization or decentralization, availability of managerial personnel, the type of
control mechanisms adopted by the organization, the management philosophy etc.,
and unfavourable organizational factors may adversely affect the delegation of
authority.
Proper Guidelines for Securing Effective Delegation
(1) There must be Proper Planning
An executive must plan beforehand as to what is to be achieved, if delegation of
authority is made. He should define clearly the objectives to be achieved and the
functions to be performed by delegating the authority. The job should be designed and
divided in such a way as to achieve the objectives. The subordinates must understand
clearly what activities they must undertake and what delegator expects from him.
(2) There must be Parity of Authority and Responsibility
Proper balance must be maintained between authority and responsibility. Responsibility
without sufficient authority will made the sub-ordinate ineffective because he cannot
have proper control over the operation of activities and he cannot perform his duties
well. Further, authority without responsibility will make the sub-ordinate irresponsible.
Parity between authority and responsibility cannot be measured mathematically. The two
must move together because the two relate to the same assignment.
(3) Dual Sub-Ordination be Avoided as far as Possible
The sub-ordinate should be accountable to their seniors. If he is to report to two bosses
for the same job, it will give rise to confusion and conflict and in such cases his loyalty
may be divided.
(4) Limits of Authority Should be Clearly and Well Defined
The limits of authority of each sub-ordinate should be well defined so that there may not
be misuse of authority. Limits of authority allow the sub-ordinate to take initiative and
freedom of action within the limits. Any matter beyond his authority be referred to the
superior.
(5) Sub-Ordinate Must Work Within the Delegated Authority
Once a sub-ordinate is assigned work and delegated authority, he should be allowed to
take decision relating to matter within his jurisdiction. Only the matters beyond the scope
of subordinate’s authority be dealt with by the superior. They should confine themselves
to the exceptions.
(6) Effective and Free Flow of Communication between the Delegator and the Delegated is
Essential to Make the Delegation Effective
This will help the superior to give clear and precise instructions and the sub-ordinate may
seek the necessary clarifications and guidance. Accurate and timely information should
be available to the executives so that any obstacle may be removed in the way of
performance of the assigned task to the sub-ordinate.
(7) For Proper Delegation Motivation through Positive Incentives be Given to Subordinate
This will be helpful in accepting the responsibility happily and can show excellent
performances. Incentives may be monetary or non-monetary. For some subordinates,
recognition and praise may be important incentive, while monetary incentive like reward
for better performance may be important for others.
(8) Proper Selection and Training of Personnel
Selection of personnel to various jobs should be fair and just. It should not be arbitrary
but it must be based on certain principles. Only right persons should be placed on the
right job. The person selected must also be given proper training to enable him to handle
 the post efficiently and to perform the assigned job properly. Proper selection and
training helps to develop their self-confidence and morale.
(9) Proper Control Techniques be Developed
In a good organisation proper control techniques should be developed and major
deviations from standard should be checked. There should be no interference in day-to-
day functioning of subordinates.

Past paper questions

1. Explain the ways in which decentralization of decision making ma facilitate effective
management (10 marks)
2. Outline five factors a manger should consider when delegating duties to subordinates
3. List three services that can be centralized in an organization (3 marks)
4. Explain six factors that determine the span of control in an organization (9 marks)
5. Explain five circumstances under which an organization may find it appropriate to
centralize office services (10 marks)
6. Explain four reasons that may make an employee decline to take up delegated work
( 8 marks)
7. Kinco limited has decided to centralize its office services. List three benefits that the
company may get from this move. ( 3 marks)
8. Explain four principles that should be followed in carrying out office organization
activities (9 marks)