Factors that have an impact on the level of delegation

The delegation of authority is required in case of almost every organization. The question that has to be decided in this regard is how much authority needs to be delegated to the subordinate managers. The pattern that should be followed for delegation needs to be decided on the basis of its requirements. At the same time, it will also be useful to regularly check the already present a delegation of authority for the purpose of ensuring that such delegation is appropriate and adequate. As mentioned above, there are a number of factors that have an impact on the decision regarding delegation. Some of these factors have been discussed below:-

1. The history of the organization: The history of the organization has an impact on the level of delegation of authority. Therefore, an organization that has grown over a period of time, has the tendency to centralize power. In case of a small organization, most of the decision-making powers are held by the owner of the organization. Even as the business of the organization grows, the tendency remains to centralize the powers. But in case of an organization that is the result of a merger, combination or an amalgamation, there can be a greater amount of decentralization of powers. If the organization is working on decentralized pattern, the organization will be run in the same way even after its acquisition. Therefore the growth history of the organization had an impact on the level of delegation of authority in the organization.

2. Availability of capable employees: The level of delegation in an organization is also influenced by the availability of capable subordinates. In case, adequate number of capable subordinates is present in the organization, who can take the responsibility, in such a case, it is easy to delegate the authority. Generally, the managers face a problem that they cannot find sufficient number of subordinate managers, who can be assigned significant duties. It is also true in this regard that if the powers are not delegated to the subordinates, they will never be able to learn the skill of management. Along with the additional training and experience, their judgment will also be improved and the subordinates will become more capable. In case of several large organizations, the task of decision-making is given to the subordinate managers in the organization so that they may develop their managerial manpower. In the beginning, it is advisable to give small powers to the subordinates. As the managerial capabilities of the subordinates develop, they can be given more significant tasks. In this regard, it also needs to be noted that, unless the powers delegated to the subordinates, the organization will not be able to develop and train the managerial skills of subordinate managers. Therefore it is important to continuously pursue the process of delegation in order to ensure that the subordinates received training and become capable of undertaking more responsibilities.

3. Significance and cost of decisions: The significance and the cost of the decisions also have a significant impact on the level of delegation in the organization. Generally it has been seen that the costlier and more significant a particular decision is, it is likely that such decisions will be made by the higher level of management. At the same time, various facts should also be available regarding the issue before making a decision. Therefore, a manager has to ensure that he has obtained all the necessary information that is required for deciding a particular issue. This information is generally more easily available to the higher level of management. Similarly, the managers are also aware of the fact that they can delegate authority, but they cannot delegate their responsibility. There are certain decisions that can have an impact on the whole organization. If a wrong decision has been made regarding such a significant matter, it can harm the whole organization. Therefore, these decisions are made by the high level management as these persons have more experience in dealing with such issues. In the career of a manager, authority needs to be given first of all to take decisions that are not very costly for the organization. And this allows the manager to learn from this experience.

4. Size of the organization: The level of delegation in the organization is also associated with the size of the organization. In case of large organizations, more decisions have to be made on the different levels of management. However, in case of such organizations, the problem of coordination and communication may arise. On the other hand, if decisions are made close to the place of action, it will not only save time, but will also reduce paperwork and similarly the misunderstandings that may arise in communication can also be eliminated. Therefore a tendency of decentralization can be seen in case of large organizations for the purpose of avoiding a number of problems.

5. Available control: When a manager is going to delegate authority, he may want to ensure that such authority will be utilized by the subordinates in accordance with these intentions and also in tune with the general objectives of the organization. For the purpose of ensuring this objective, there should be some control devices available to such a manager. Generally, there is a hesitation on the part of the managers to delegate authority as a result of the fact that they are not aware how to control the authority delegated by them. Therefore, the managers may feel that it takes more time in exercising control instead of exercising authority themselves. Therefore it is necessary to establish some type of control devices. The better control devices are available to the managers, the more will be the level of delegation in the organization.

6. Environmental factors: apart from the internal factors, delegation is also impacted by the external factors. These factors include government control over business, trade unions and the tax policies. While in case of a large organizations, they may be required to deal with the workers unions at the national level also. In such cases, the decisions have to be made and the medications they place at the national level. In such a case, the situation is handled by the head office of the organization and these decisions are applicable at all the levels within the organization. Therefore, such as situation means that in the field of labor relations, the decision-making is decentralized. The same is also true in case of the government control over the business and the tax legislations.

7. Types of enterprise: The level of delegation of authority in an organization is also affected by the type of enterprise. Therefore, if the organization can be described as a rapidly expanding industry, the top-level management of the organization will be required to delegate authority otherwise the management will be burdened with the task of taking a large number of decisions. In such a case, the decentralization of authority will take place even if a subordinate manager does not have sufficient experience of exercising authority. The management of the organization is required to provide guidelines for the subordinate managers so that they can make proper decisions.