[Solution] Distribution of Authority
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Author: Sarah Bennett
Authority is power that has been legitimized by the organization. Authority is distributed among various employees so that every decision does not have to be referred to the head of the organization.
Delegation
Managers may assign, or delegate, part of their work to subordinates. Doing so helps the manager optimize their workload while at the same time developing other employees. The delegation process consists of three steps:
- Step 1: The manager gives the subordinate a job to do.
- Step 2: The manager gives the subordinate the authority, or power, to carry out the assignment.
- Step 3: The manager establishes that the subordinate is accountable for performing the task.
In practice, these steps are often an implicit part of the working relationship between manager and subordinate.
The Delegation Process
Assign Responsibility
Give subordinate a specific task
Grant Authority
Provide power to make decisions
Create Accountability
Establish obligation for results
Potential Barriers to Delegation
Despite the benefits of delegation, many managers struggle to delegate effectively due to several common barriers:
- Perfectionism: Managers believing no one else can do the task as well as they can
- Lack of confidence: Managers not trusting subordinates' abilities
- Fear of competition: Concern that capable subordinates might threaten the manager's position
- Poor planning: Not having enough time to explain tasks and train subordinates
- Lack of clarity: Inability to clearly define tasks, expectations, and boundaries
- Control issues: Discomfort with giving up direct control over task execution
Decentralization and Centralization
Organizations vary in how they distribute decision-making authority:
- Centralized organizations concentrate decision-making authority at higher levels
- Decentralized organizations distribute decision-making authority to lower levels
Several factors influence whether an organization tends toward centralization or decentralization:
- Environmental complexity: Complex environments often benefit from decentralization
- Manager capabilities: Skilled lower-level managers support decentralization
- Organizational size: Larger organizations often need more decentralization
- Decision importance: Critical decisions may remain centralized
- Organizational culture: Some cultures value distributed authority
Select the word or phrase that best completes the following sentence.
An organization is if middle and lower-level managers are granted a large amount of authority.
View Explanation
When authority is distributed downward in the organization to middle and lower-level managers, the organization is said to be decentralized.
A tall organization is one whose structure has more layers of management than average.
Match each description with the corresponding step of the three-step delegation process.
Establishing that the subordinate has an obligation to complete an assigned task
Giving the subordinate a task
Giving the subordinate the power to do an assigned task
View Explanation
Step 1 of the delegation process is the assignment of responsibility for a task to a subordinate. This means giving the subordinate a job to do. This is distinct from giving the individual either the authority to do the job or the accountability for doing it.
Step 2 of the delegation process is the granting of authority to a subordinate to perform a task. For example, a manager could work with the Finance department to grant the employee authority to spend a budgeted amount of money at the employee's discretion. Or the manager might say, "I know you'll have to make some decisions as you're performing the task. I trust you to make the right choices—you don't need to check with me first."
Step 3 of the delegation process is the establishment of accountability for the task. Accountability means the subordinate has accepted the obligation to complete the task in a satisfactory manner.
Select the correct response(s) to the following question.
Which of the following are common reasons that managers do not delegate work? Check all that apply.
- The manager does not have time to both explain the task and wait for the subordinate to complete it.
- The manager fears that if a subordinate can do management work, the manager will lose that employee's respect.
- The manager believes that no subordinate will do a good enough job with the task.
- The manager believes that assigning work to subordinates will give others the impression that the manager is lazy.
View Explanation
A common reason why managers do not delegate as much as they should are that they do not plan their work sufficiently to hand part of it off to someone else. Another reason is that managers may believe that none of their subordinates could do a good enough job. On the other hand, managers sometimes worry about being "shown up" by a subordinate who can do the manager's job well.
While a particular manager might worry about looking lazy by delegating work, this is not generally a reason why managers avoid delegation.
Identify whether each factor listed tends to cause an organization to become more decentralized or more centralized.
Strong decision-making skills among lower-level managers
Challenging external environment
Simple external environment
View Explanation
When lower-level managers possess strong decision-making skills, an organization will be more successful with a relatively decentralized distribution of authority.
When the external environment is relatively difficult to navigate, an organization may be more successful if it has a more decentralized distribution of authority.
When the external environment is relatively straightforward, an organization may be more successful if it has a more centralized distribution of authority.
