The following are the major advantages of delegation of authority:
1. Minimize Work Load Of Managers
Delegation of authority minimizes the workload of managers.They can assign regular and routine nature of work to their subordinates while they concentrate more effectively in managerial and creative functions. In this way, delegation of authority helps in improving managerial efficiency and effectiveness.
2. Benefit Of Specialization
Specialization is the means of success in a dynamic environment.The management delegates authority as well as responsibility to subordinates on the basis of their ability and knowledge. This contributes in the development of the concept of specialization among the subordinates.
3.Motivation And Morale
Delegation of authority develops among the subordinates a feeling of status and prestige. It helps to improve their working efficiency.It also promotes a sense of initiative and responsibility among them. This ultimately leads to maintenance of high morale on the part of subordinates. This motivation and morale of subordinates encourages them to develop their effort towards the achievement of common goals.
4. Training And Development
Delegation of authority provides a background for training and development of subordinates. The manager delegates some of his authority as well as responsibility to the subordinates in accordance with their ability. The subordinates have to perform a task on behalf of the superior and in the same situation they have to take decisions by using their own ideas and knowledge. This environment provides a framework for the development of managerial ability among the subordinates.
5. Facilitates Growth And Expansion
Delegation of authority facilitates growth and expansion of business activities. It provides flexibility in the organizational structure. According to the requirement, more layers can be added to the existing organizational structure through the process of delegation.
6. Quicker And Better Decision
Delegation of authority ensures a quicker and better decision. Subordinates get the authority to decide on the matters of their own area by remaining within the limitations. Here, subordinates can take quick decisions without consulting the superior. Decision making is also better because subordinates are closer to the reality of the situation.
7. Basis Of Organizing
Delegation of authority is the basis of forming an organizational structure. The number of layers in the organizational structure depends upon the nature of delegation of authority and responsibility. In a similar way, the functioning of the enterprise is not possible without an organizational structure. Therefore, the management has to first decide on the layers of delegation of work, authority and responsibility and then proceed with the formation of organizational structure.
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