Question

Aman Chadha started 'Bulls Eye' a company for providing cyber security solutions to business. Its objective is to prevent, detect and respond to cyber attacks and protect critical data. He was a hardworking software engineer and an expert in cyber security. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day.

He was delighted when he was offered a big project by the Ministry of Defence. While working on the project, he found that the volume of work made it impractical for him to handle all the work by himself. He decided to expand the team. The company maintained a close liaison with a local engineering college. During a campus placement, Ishan and Vrinda were appointed to work for the new project.

He found the new employees capital, enthusiastic and trustworthy. Aman Chadha was thus, able to focus on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not only this, Aman Chadha was also able to extend his area of operations. On the other hand Ishan and Vrinda also got opportunities to develop and exercise initiative.

(a) Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in focusing on objectives.

(b) Also State any four points of importance of the concept identified in (a) above.

Answer 1

(a) Delegation:

Delegation of authority refers to downward transfer of authority from a superior to a subordinate. Its main elements are authority, responsibility and accountability.

(b) Importance of Delegation:

(i) Effective Management: By delegating routine work to subordinates the managers are able to get more time to concentrate on important matters and excel in new areas efficiently.

(ii) Employee Development: Delegation empowers the employees by providing them the chance to use their skills, gain experience and develop themselves for higher position.

(iii) Motivation of employees: Responsibility for work builds the self-esteem of an employee and improves confidence. He/She feels encouraged and tries to improve his/her performance further. 

(iv) Facilitation of growth: Trained and experienced employees are able to play significant roles in the launch of new projects by replicating the work ethos they have absorbed from existing units, in the newly set unit.

(v) Basis of management hierarchy: Delegation of authority establishes superior-subordinate relationships, which are the basis of managerial hierarchy.