Business Studies 3 Marks Question

Importance of Delegation (any three):(i) Delegation leads to effective management through empowerment of employees.(ii) Delegation helps in employee development by providing them with the chance to use their skills and experience.(iii) Delegation motivates employees by giving them responsibility which builds their self-esteem.(iv) Delegation facilitates growth by providing ready workforce to take up any expansion program.(v) Delegation provides basis of management hierarchy by establishing superior-subordinate relationship.(vi) Delegation helps in better coordination as it avoids overlapping of duties.

Advantages of functional structure (any three):(i) Functional structure leads to occupational specialisation.(ii) It promotes control and coordination within the department.(iii) It helps in increasing managerial and operational efficiency and this results in an increase in profits.(iv) It leads to minimal duplication of effort.(v) It makes training of employees easier.(vi) It ensures that different functions get due attention.

Yes, it is right to say that authority or decision-making power can be delegated but the accountability can never be delegated according to the principle of absolute responsibility or principle of abdication. The accountability remains with the manager even after delegating the work.For example, the directors of a computer manufacturing company have asked their production manager to achieve a target production of 150 computers per day. The production manager has asked his five foremen to achieve this target. Two of them could not achieve the target.In this case, production manager is responsible and accountable for non-completion of target because by passing authority and work to foremen, manager cannot get rid of his responsibilities and accountability.