Answer» - In business terminology, ‘power’ refers to giving orders and also to see to it that the orders are followed.
- When the size of the organization becomes large, the upper level administrators assign some work to their subordinates.
- These subordinates have to see that the orders are followed properly. For this the subordinates are given some powers.
- This vesting of powers is called delegation of power.
- Thus, the system of giving power to the other person for doing a particular task is called delegation of power.
- According to Louis Allen, “Delegation of authority means assignment of responsibility and power to the subordinates by creating accountability for effective performance.” He also says that “Delegation of power is such kind of process in which the administrator gives a part of the powers to his helpers along with duties, and the helpers, with the help of others, for the purpose of work performance, accepts such powers consciously.”
- It should be noted that although the subordinates are given powers and they are responsible to get the work done but the final completion of the work and its responsibility rests with the upper level administrator only and he cannot free himself from that.
- Delegation of authority can be for various purposes. For example, Marketing Managers are given power to incur necessary expenditure in their work area, the appointment of employees, to take disciplinary actions against the employees, etc.
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