Importance of Delegation for the Smooth Functioning of a Business

Importance of delegation for the smooth functioning of a business are: 1. Effective Management 2. Employee Development 3. Motivation of Employees 4. Facilitation of Growth 5. Basis of Management Hierarchy 6. Better Coordination!

Delegation of authority is necessary for the smooth functioning of a business as manager can’t perform all the functions on his own.

Therefore, delegation increases the working capacity of a manager.

The importance or advantages of delegation becomes clear from the following facts:

1. Effective Management:

Delegation of authority helps the managers to free themselves from the burden of routine tasks. They can then focus better on such priority areas as need to be pursued by them alone.

Delegation enables them to concentrate more on diversification and expansion of business activities. They can concentrate on core areas which results in developing opportunities to excel in their respective areas.

2. Employee Development:

Delegation develops an enthusiasm among the subordinates to deal effectively with great challenges. It motivates the employees to develop themselves for higher positions, as they are given opportunities to use their skills and talents for gaining excellence in their jobs.

3. Motivation of Employees:

Delegation involves faith on the part of superiors and commitment on the part of the subordinates. This helps in enhancing self esteem and confidence of all employees at large. Thus, it motivates all of them which is essential for smooth achievement of organizational goals.

4. Facilitation of Growth:

Delegation facilitates growth and expansion of an organisation by providing trained and experienced personnel for taking up leading positions in some new project.

5. Basis of Management Hierarchy:

Delegation of authority determines who has to report to whom creates the chain of superior/subordinate relationships which is the basis for hierarchy of management.

6. Better Coordination:

The elements of delegation namely authority, responsibility and accountability clearly define the powers, duties and the answerability attached to the various positions in an organisation.

This helps in avoiding overlapping of duties. Resultantly, better coordination among various departments and the functions of management gets established.