(1) Delegation of authority is the concept used by Aman Chadha.
“Delegation of authority” simply refers to an act of entrusting the subordinates with same powers that are of the superior authority i.e., granting of authority by superior to subordinate. It is based on the elementary principle of division of work by which a superior spreads his area of managerial influence.
(2) Following are the points of importance of delegation of authority :
(a) Effective management – Delegation reduces the workload of top executives and relieves the managers of the need to attend to minor or routine type of duties. Managers are able to devote greater attention and efforts towards more important matters.
(b) Employee development – Delegation of authority enables the employees of business to develop their capabilities to undertake new and more challenging jobs. It enables them to use their skills, gain experience and develop themselves for higher positions.
(c) motivation of employees – Delegation of authority motivates subordinates to perform complex tasks and assume responsibilities. It promotes job satisfaction and contributes to high employee morale.
(d) Facilitation of growth – Delegation of authority helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures.
(e) Basis of management hierarchy – Delegation of authority establishes clear superior subordinate relationships which are the basis of hierarchy of management.
(f) Better coordination – Delegation helps to define the authority, responsibilities and answerability related to various job positions which ensures better coordination.