Benefits Or Advantages Of Delegation Of Authority
The main advantages of delegation of authority can be studied as follows:
1. Specialization
Authorities and responsibilities are delegated as per the skills, abilities, knowledge and experience of subordinates. So, delegation of authority promotes specialization and division of work in the organization.
2. Reduce Pressure And Workload
In delegation, routine routine tasks are assigned to middle level and lower level managers. It reduces the pressure, stress and workload of top level manager. Manager get enough time to conduct other important creative and productive activities.
3. Quick Decisions
Lower level managers get the authority to make decisions which helps to improve their decision making power. They do not need to consult top managers to take decision which ensures prompt decisions at the workplace.
4. Employee Development
Delegation of authority helps to develop skills and capabilities of subordinates. It helps them to perform challenging jobs which helps to develop managerial qualities.
5. On-the-job Training
Delegation of authority is a kind of on-the-job training where subordinates can learn, improve skills and develop managerial abilities at the workplace.
6. Better Understanding
It helps to build trust and better understanding between managers and subordinates in the organization. It promotes effective communication and sense of team spirit while performing the job.
7. Expansion And Diversification
Delegation creates well-trained, dedicated and competent team of subordinates. So, it is helpful for expansion, growth and diversification of organization.
8. Suitability
Delegation of authority is suitable for large organizations with different departments, branches and units with various organizational activities.
5. Lack Of Self Confidence
Drawbacks Or Disadvantages Of Delegation Of Authority
The major disadvantages of delegation can be studied as follows:
1. Misunderstanding And Conflict
Because of lack of proper communication and coordination, there exists a chance of misunderstanding and conflict between managers and subordinates. It may negatively affect the performance and productivity of the firm.
2. Poor Results
It authority and responsibility is delegated to unskilled and incompetent subordinate, then the organization cannot achieve desired results because of poor performance.
3. Misuse Of Power
Another drawback of delegation is that the subordinate can misuse his.her power by taking wrong decisions for personal benefit.
4. Burden On Subordinates
Delegation of authority increases the workload and stress of subordinates. Pressure of work may lose interest and lower the motivation towards the job.
Superior tries to delegate boring and not properly defined tasks to the subordinates. In most cases, very limited power is given to them which reduce the self confidence of the employees.
6. Low Quality Of Work
If authority is not delegated properly to the proper person, then the quality of work will be affected. It negatively affects productivity, goodwill and image of the business.
7. Not Suitable
Delegation of authority is not suitable for small firms with limited organizational activities.
Pros And Cons Of Delegation Of Authority In Short
Pros:
- It reduces the burden of top management
- It motivates middle and lower level managers
- It encourages specialization in the workstation
- It facilitates quick and sound decisions
- It facilitates growth and diversification
- It provides learning opportunity for subordinates
Cons:
- It increases the burden of middle and lower level of management
- There is a possibility of confusion, misunderstanding and conflict because of the lack of proper communication between managers and subordinates
- It is not suitable for unskilled and incompetent employees
- It may reduce self confidence and motivation of employees if authority is not delegated properly
- It is not applicable for small organizations