Importance of the delegation of authority
1. Reduces work load to managers: delegation of authority permits a manager to share his work load with his subordinate. By passing on some of his own work to the subordinates, the manager is able to concentrate on more important aspects of his works.
2. Basis of superior subordinate relations: delegation of authority is the process by which superior subordinate relations among managers are established. The flow of authority from the top management to lower levels is directed and regulated by the process of delegation.
3. Improves managerial effectiveness: the manager who delegates authority can perform much ore than one who does not. This is because the manager who delegates can get some work done by his subordinates and is able to concentrate on important matters which need his attention take appropriate decisions and act accordingly.
4. Motivates subordinates: delegation of authority implies grant of authority to the subordinates along with responsibility. As a result subordinates have a sense of importance, apart from getting some independence. They are motivated to work for the higher performance. They are also likely to utilize their abilities and skills to do their job well.
5. Develops managers: delegation of authority is a source of development of managers. It opens up opportunity for the managers to acquire leadership and other skills and competence. They are required to exercise their authority, to handle situations and to solve managerial problems. They are also required to get things done by their subordinates, by motivating and guiding them.
6. Facilitating organizational growth: delegation of authority at all levels of management facilitating the growth of the organization. This is because division of labour implicit in the delegation enables the organization to create more managerial jobs for assuming additional work load of expansion and growth. New departments can be created and the managers can be appointed who will have delegated authority to manage them.