Answer:
Delegation of authority is important for an organisation because of the reasons discussed below: (i) Motivation of Employees Delegation provides a feeling of status and recognition to subordinates, as it is not only a process of sharing workload, but also involves trust of the superior on his subordinate. Entrustment of responsibility builds up his esteem and encourages him to perform better. (ii) Facilitation of Growth Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. Trained and experienced employees are able to play significant role in launching new projects of the organisation. (iii) Basis of Management Hierarchy Delegation of authority establishes superior-subordinate relationships, which are the basis of hierarchy of management. This helps employees to know 'who has to report to whom'. Thus, duties and powers of each individual becomes clear. (iv) Better Coordination The elements of delegation namely authority, responsibility and accountability helps to define the powers, duties and responsibilities related to various positions in an organisation. This helps to avoid overlapping and duplication of work and facilitates coordination, as it gives a clear picture of the work being done at various levels.
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