Following are the topics which are covered in this section. You can choose from the sub sections or continue directly below the sub sections.

What is the Significance of Delegation?

The principle of delegation of authority is accepted universally. This principle has been practiced from very ancient times and in almost every field. The delegation of authority is not only necessary for the business organizations but delegation is also required to run a government. In case of a government, powers are delegated by a legislative body to the Council of ministers and the Council in turn, delegates the powers to its officers and so on. In this way, we see that delegation of authority is required to run even a family because in this case also, the head of the family can get the help from other members of the family to perform different tasks. In case of an industrial organization, the delegation of authority may provide certain benefits in the following ways:-

By improving functioning: If there is no delegation of authority, some persons of the organization may have to do most of the tasks while the other officers may not have adequate work to do. In this way, delegation helps by rationalizing the working of the organization. It allows the work to be divided equally between different officers so that the work can be completed efficiently. Similarly it also ensures that no person is burdened unduly and similarly no work remains pending.

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What are the difficulties related to the process of delegation

Certain difficult is may be faced by managers in the process of delegation. These difficulties may arise due to in the attitude of the supervisors or due to the attitude of the subordinates or both. In the same way, certain defects may be present in the structure of the organization, due to which the process of delegation of authority may be hampered. Some of the difficulties that may be faced during the process of delegation of authority may be described as follows:-

Lack of confidence in the subordinates: Sometimes, the superiors may believe that their subordinates are not competence enough to carry out a particular task. In such a case, the superior may not have confidence in the abilities of the subordinates. As a result, the superior may hesitate to delegate authority to the subordinates.

Overconfidence of the superiors: In some cases, the superiors may feel that a particular task can be performed only by them which may result in creating difficulties in the process of delegation of authority. When a manager believes that his subordinates do not have the capability to make proper decisions, such manager will concentrate all the powers with himself and is not likely to delegate authority to his subordinates. Such a situation may not arise owing to the incompetence of the subordinates but it may be presented to the overconfidence of the superiors.

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What are various types of Delegation?

Specific or general delegation: specific delegation of authority is related with an assigned the task or a particular function. The authority that has been delegated to the production manager in order to perform this function can be considered as specific delegation of authority. The managers of various departments had given specific authority so that they can complete their departmental duties.
When authority is conferred for performing general managerial functions like organizing, planning or directing etc., these functions are performed by the subordinate managers and they enjoy the authority that is needed for carrying out these responsibilities. In such a case, the chief executive has the overall control and he also guides the subordinates regarding different matters.

Formal or informal delegation: the former delegation of authority is considered as a part of organizational structure. Whenever, a particular task has been assigned to a person, then the necessary authority is also conferred on such a person. This type of delegation is considered as a part of the routine functioning of the organization. In such a case, authority is automatically provided to every person, according to the duties assigned to such a person. For example, when powers are given to the production manager to increase production, it is a case of the former delegation of authority to such manager. On the other hand, the informal delegation of authority does not take place due to position but it takes place according to the prevalent circumstances in the organization. A particular task may be undertaken by a person not the reason that such task has been assigned to the person but because such task is necessary to perform the normal work of the person.

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Explain Delegation its Characteristics and its Types

Delegation can be described as an administrative process under which things are made to be done by others and for this purpose; responsibility is also given to them. For example, the board of directors takes all the significant decisions in an organization. The execution of these decisions is given to the Chief Executive Officer (CEO) of the organization. The chief executive assigns particular tasks to the managers of different departments and in turn these managers delegate the authority to complete the task to their subordinates. In this way, all the superiors in an organization delegate authority to their subordinates in the organization so that a particular task may be completed. This process goes on to the level where the employees perform the actual task. The person who has been given the responsibility to get a particular task completed is also provided the required authority so that the person may get the task completed.

A limit is present to the extent to which the subordinates can be supervised by a person. When the number of subordinates increases beyond this point, then the person has to delegate his authority to other persons who have to perform the task of supervision for such a person. Therefore the job of a manager is not evaluated from the work that is actually performed by such a manager on his own but on the basis of the work that the manager has got done from his subordinates. Therefore, the manager assigns duties and authority to the subordinates and makes sure that the desired organizational goals are achieved by the subordinates.

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Explain the difference between Responsibility, Accountability and Power

Responsibility can be described as the obligation to do something. It is the duty that a person is required to perform in organizational tasks, assignments or functions. At this point, it needs to be noted that authority and responsibility go side by side. Therefore when authority is delegated to a person, some responsibility is also fixed for getting the assigned task completed. At the same time, it is also worth mentioning that while authority can be delegated, responsibility cannot be delegated. There are certain features of responsibility.

o Responsibility arises in case of a superior-subordinate relationship;
o Responsibility always flows upwards, from juniors to seniors;
o Responsibility arises due to the duty assigned;
o Responsibility cannot be delegated;
o Responsibility is the obligation to complete the job according to instructions.

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What is Authority and its Sources?

Authority can be described as the level of discretion that has been provided to the people to make their own judgment regarding significant matters. Generally, it has been seen that in case of small organizations, the decision-making power is held by a few persons only. However, with the increase in the size of the organization, the need arises to delegate authority to more and more person so that the increasing work of the organization can be completed effectively. It is not possible for a single person in the organization to do all the work that is necessary to achieve the purpose of the group. Therefore it is also not possible that all the authority to make the relevant decisions should be exercised by only a single person, particularly when the size of the organization is very large. In this context, authority can be described as the right of a person to give orders and also to make sure that these orders are followed. The elements of authority can be described as follows:

i. A right is present in case of authority. This right is provided to the person by a superior. As a result of this right, a person can regulate the behavior of the subordinates.

ii. The right present in authority to give orders to subordinates is a legitimate right.

iii. The right of making a decision is also a part of authority. This allows a person to decide what needs to be done and also the fact that when a task has to be done and who is going to do it.

iv. Authority is conferred with a view to influence the behavior of the subordinate and to make sure that the right things are done at the right moment.

v. In all the cases, the exercise of authority is subjective. The personality of the person who has the authority and the person on whom it is exercised, have an impact on authority.

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What is the need and characteristics of budget? Also explain its classification

There are certain characteristics of budgets, these are:-
A budget has to be based on the figures from the past. However it is also required to take into consideration the possibilities of future.

But it is also required to be flexible so that it can be modified if the need arises in future as a result of changing circumstances. It is possible that difficulties may be created for the management by the rigidity in budget.

The employees at different levels within the organization are required to be involved in the preparation of the budget. This helps in ensuring the willing cooperation of the employees when the management is going to implement the budget.

Budget has to be a specific statement. Therefore it should clearly mention the monitor information on quantities. It is very important that the top management of the organization is actively involved in the preparation of the budget.

Need for preparing budgets
Budgeting is considered as essential for the functions of planning and control. There are certain reasons due to which budgets are considered as being essential for the organization.

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What is the process of planning and how can plans be made effective?

In the process of planning, there is an establishment of business objectives and also the allocation of organizational resources in order to achieve these objectives. It is the process of deciding the future course of action that has to be taken by the organization in order to fully utilize the resources available with the organization. In this way, the process of planning can be described as a combination of finding information and decision making that is based on information inputs, outputs as well as a feedback loop.

Steps in the process of planning: there are different steps that are involved in the process of planning. These range from deciding the problem to taking the follow-up action. Therefore the steps that are involved in this process can be described as:-

1. Recognizing the need for action: the first step that is involved in the process of planning requires the awareness regarding business opportunity and also the need to take action. In this regard, the present as well as the opportunities that may arise in the future need to be discovered so that the managers can make plans for them. At the same time, the current economic trends are also required to be considered. An example can be given in this regard of a situation where the government of a country is willing to develop the rural areas as industrial centers, it will be considered by any farsighted organization that units should be established in these areas so that the facilities that may be offered by the government for this purpose can be availed by the organization.

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