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SS2: COMMERCE - 3RD TERM

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  1. Business Law | Week 1
    5 Topics
    |
    1 Quiz
  2. Agency | Week 2
    7 Topics
    |
    1 Quiz
  3. Sale of Goods | Week 3
    5 Topics
  4. Rights of an Unpaid Seller and Buyer, Hire Purchase | Week 4
    3 Topics
    |
    1 Quiz
  5. Rights and Obligations of Employer and Employee | Week 5
    1 Topic
    |
    1 Quiz
  6. Government Regulation of Business | Week 6
    1 Topic
    |
    1 Quiz
  7. Structure of Business | Week 7
    3 Topics
  8. Organizational Structure Cont'd | Week 8
    2 Topics
  9. Span of Control | Week 9
    4 Topics
    |
    1 Quiz
  10. Introduction to Business Management | Week 10
    4 Topics
  11. Business Organizational Units | Week 11
    1 Topic
    |
    2 Quizzes



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What is Delegation of Authority?

This is a transfer of authority to others for the performance of a specific task and for making decisions in a general or specific area of management activity. This organizational process permits the transfer of authority from the superior to a subordinate.

Delegation of authority empowers a subordinate to make commitments, use resources, and take action in relation to duties assigned to him.

Advantages of Delegation of Authority

(i) It creates a situation where managers communicate their spans to subordinates.

(ii) Training opportunities are provided for the managers for future challenges.

(iii) Appraisal of employees performance is allowed in order to determine their productivity.

(iv) It increases flexibility and reduces communication gap.

(v) It reduces the time spent waiting for guidance, approval, or decisions since most matters do not have to be referred to the top management.

(vi) The engagement of subordinates in decision making process makes the job to be handled with speed.

(vii) It relieves the managers from excessive workloads and gives them time to concentrate on planning and policymaking. 

Disadvantages of Delegation of Authority

(i) In the process of incompetency of the subordinates, the quality of the job may be adversely affected. 

(ii) Some of the subordinates can abuse the opportunity given to them by taking over the job.

(iii) It can lead to duplication of managerial services.

(iv) The manager may lose touch with the happenings in his departments.

(v) If the authority is not clearly defined, it may bring about confusion.

Evaluation Questions

  1. With the aid of a diagram, draw up a line and staff structure
  2. State five advantages of this structure
  3. What is delegation of Authority?
  4. State three advantages and two disadvantages of delegating authority.

Responses

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