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Organising — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesOrganising6 Marks
Question
Why is delegation considered essential for effective organising?
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Answer

Delegation or delegation of authority is considered essential for effective organising because of the following reasons:
  1. Effective Management: Effectiveness means successful accomplishment of an objective. Delegation of authority reduces the workload of a manager. Managers who practice delegation of authority are definitely better decision makers than those managers who do not delegate authority. The former ones get the benefit of the skills of their subordinates.
  2. Employee Development: The mental growth of a person takes place only when he has authority to take decisions. The process of delegation of authority provides authority to take decisions to subordinates. With the given authority, managers take decisions contingent to the situations. As a result, in future they become more able to take extra responsibility.
  3. Motivation of Employees: In the process of delegation of authority, both authority and responsibility are delegated to the subordinates. This situation provides liberty to work and take decisions on part of subordinates. Gaining through this, they exhibit their talent and skill. With better performance the subordinates create a niche for themselves in the organisation. Consequently, they get job satisfaction and feel motivated to perform ever better.
  4. Facilitation of Growth: Delegation of authority does not only develop only one person or division but facilitates the development of organisation as a whole. As adequate number of able employees are available in an organisation to take decisions Expansion, Modernisation and Diversification of a business can be done with full confidence.
  5. Basis of Management Hierarchy: Management hierarchy is inevitable to run a business organisation successfully. Only because of this hierarchy, the superiors and subordinates come in contact with each other and get an opportunity to understand one another. This hierarchy is established through the process of delegation of authority. Under this, authority flows from top level to the bottom level. As a result, senior and subordinate links are established from top to bottom.
  6. Better Coordination: Delegation of authority is a process to establish relation among responsibility, authority and accountability. Through this, employees get clarification with regard to their powers, duties and accountability for work performance. Thus, a clear picture is delineated for all the jobs performed at various levels, which automatically establishes better coordination.

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