Delegation is the transfer of authority from superior to subordinate. It has three elements: Authority, Responsibility and Accountability. Importance of delegation is that it helps in effective management, employee development, motivation, growth and coordination.
Authority: Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. The concept of authority arises from the established scalar chain which links the various job positions and levels of an organization.
Responsibility: is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior–subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. Thus, responsibility flows upwards i.e., a subordinate will always be responsible to his superior.
Accountability: Accountability imply being answerable for the final outcome.Delegation of authority undoubtedly empowers an employee to act for his superior but the superior would still be accountable for the outcome:
Decentralization is delegation of authority throughout the organization. Importance of decentralization is that it helps in development of managerial talent, quick decision making reducing burden on top management, development of initiative, growth and better control.
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