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For effective management in an organization, the top management must delegate some authority to the lower level of management. Through delegation, every manager becomes responsible and accountable for all the operations under his department, division, section, unit etc. Delegation facilitates co-operative efforts to the individuals working in an organization. Delegation is the assignment of authority and responsibility to others in order to carry out these assignments.
The top management cannot perform all the tasks of the organization and duties should be shared with immediate subordinates until all activities are assigned to persons who are made responsible to perform them. Delegation of authority may either be formal or informal i.e. it may be put down in writing detailing exactly what authority is delegated or it may be merely mutually understood by both the superior and the subordinates. Authority delegated must be spelt out clearly to avoid ambiguity which may result in misinterpretation by the subordinate who may exceed the authority given to him or not fully utilize the authority and may end up taking every problem to the superior for decision making