50 Responsibility, Authority and Delegation
50.2 Responsibility — Obligation to Perform
Responsibility is the obligation of a subordinate to perform the duties assigned. It arises from a superior-subordinate relationship, not from the law.
Responsibility cannot exceed authority: assigning a task without giving the means to perform it leads to frustration and failure. The parity principle — authority and responsibility should match.
50.3 Accountability — Answering for Results
Accountability is the liability of a subordinate to answer to the superior for the proper discharge of duties. It flows upward; it cannot be delegated.
| Concept | Direction | Delegable? |
|---|---|---|
| Authority | Flows downward | Yes |
| Responsibility | Flows upward | Yes |
| Accountability | Flows upward | No |
50.4 Delegation of Authority
Delegation is the process by which a manager assigns a portion of authority to a subordinate to perform certain duties. Three steps:
| Step | Action |
|---|---|
| 1 | Assign duties / responsibility |
| 2 | Grant authority commensurate with the duty |
| 3 | Create accountability for the proper discharge |
50.5 Principles of Effective Delegation
| Principle | Working content |
|---|---|
| Functional definition | Each role’s tasks are clearly defined |
| Parity of authority and responsibility | Authority equals the assigned duty |
| Absoluteness of accountability | Accountability stays with the original manager |
| Scalar chain | Authority flows through the recognised line |
| Unity of command | One superior per subordinate |
| Result-oriented | Results, not means, drive evaluation |
50.6 Importance of Delegation
- Reduces manager’s work-load and stress.
- Develops subordinate skills and decision-making.
- Speeds up decisions at the point of need.
- Improves morale, motivation and trust.
- Enables growth — manager cannot do everything.
50.7 Barriers to Delegation
| Source | Barrier |
|---|---|
| Manager | Fear of competition, lack of confidence in subordinates, perfectionism |
| Subordinate | Fear of failure, lack of confidence, dislike of additional work |
| Organisation | Centralised culture, weak controls, ambiguous structure |
50.8 Centralisation and Decentralisation of Authority
Centralisation concentrates authority at the top; decentralisation disperses it. Decentralisation differs from delegation:
- Delegation — between two persons (manager and subordinate).
- Decentralisation — across the whole organisation; a philosophy of management.
| Dimension | Delegation | Decentralisation |
|---|---|---|
| Scope | Between two persons | Across the entire organisation |
| Nature | Process | Philosophy / policy |
| Need | Compulsory in management | Optional, deliberate |
| Authority withdrawal | Manager retains right to recall | Less easily reversed |
| Control | Direct, by the delegator | Indirect, by policies and KPIs |
50.9 Decentralisation — Pros and Cons
| Benefits | Costs |
|---|---|
| Speedier decisions | Coordination problems |
| Develops managerial talent | Risk of inconsistent decisions |
| Better motivation at lower levels | Higher cost — duplicate functions |
| Adaptive to local conditions | Loss of centralised control |
| Top management freed for strategy | Difficulty in inter-unit transfers |
50.10 Recent Trends — Empowerment
Empowerment extends delegation by giving employees genuine decision authority, information, and resources — not just task assignments. Edward Lawler and others argue that empowerment converts employees into “intrapreneurs” who own results.
50.11 Worked Example — Delegation Failure
A sales manager assigns a new pricing decision to her assistant but (i) does not specify the price-band she may approve, (ii) requires every quote to be re-confirmed by herself before issue, and (iii) reprimands the assistant whenever a customer complains. This violates:
- Functional definition — task is unclear.
- Parity — authority withdrawn through re-confirmation.
- Result-orientation — manager interferes in means.
The likely outcome is delegation in name only — the assistant has accountability without authority.
50.12 Exam-Pattern MCQs
Q1. Which of the following cannot be delegated?
A. Authority B. Responsibility C. Duty D. Accountability
Answer: D. Accountability cannot be delegated; it stays with the original manager.
Q2. Match each concept with its direction of flow:
| Concept | Direction | ||
|---|---|---|---|
| (i) | Authority | (a) | Upward |
| (ii) | Responsibility | (b) | Downward |
| (iii) | Accountability | (c) | Upward (and not delegable) |
A. (i)-(b), (ii)-(a), (iii)-(c) B. (i)-(a), (ii)-(c), (iii)-(b) C. (i)-(c), (ii)-(b), (iii)-(a) D. (i)-(b), (ii)-(c), (iii)-(a)
Answer: A.
Q3. The acceptance theory of authority is associated with:
A. F.W. Taylor B. Henri Fayol C. Chester Barnard D. Elton Mayo
Answer: C. Chester Barnard’s Functions of the Executive (1938) — authority exists only when the subordinate accepts it.
Q4. Match the type of authority with its content:
| Type | Content | ||
|---|---|---|---|
| (i) | Line | (a) | Specific authority over a specialised activity |
| (ii) | Staff | (b) | Direct authority over subordinates in the chain |
| (iii) | Functional | (c) | Advisory; provides expert support |
A. (i)-(b), (ii)-(c), (iii)-(a) B. (i)-(a), (ii)-(b), (iii)-(c) C. (i)-(c), (ii)-(a), (iii)-(b) D. (i)-(c), (ii)-(b), (iii)-(a)
Answer: A.
Q5. Which of the following best distinguishes delegation from decentralisation?
A. Delegation is between two persons; decentralisation is a firm-wide philosophy B. Delegation is firm-wide; decentralisation is between two persons C. They are exact synonyms D. Decentralisation is illegal in companies
Answer: A. Delegation = process between manager and subordinate; decentralisation = systematic dispersion of authority across the firm.
Q6. Match each barrier to delegation with its source:
| Barrier | Source | ||
|---|---|---|---|
| (i) | Fear of failure | (a) | Manager |
| (ii) | Lack of confidence in subordinate | (b) | Subordinate |
| (iii) | Centralised culture | (c) | Organisation |
A. (i)-(b), (ii)-(a), (iii)-(c) B. (i)-(a), (ii)-(b), (iii)-(c) C. (i)-(c), (ii)-(b), (iii)-(a) D. (i)-(c), (ii)-(a), (iii)-(b)
Answer: A.
Q7. Arrange the three steps of delegation in correct sequence:
- Grant authority
- Assign duties
- Create accountability
A. (ii), (i), (iii) B. (i), (ii), (iii) C. (iii), (i), (ii) D. (iii), (ii), (i)
Answer: A. Assign duties → Grant authority → Create accountability.
Q8. Which of the following is not a benefit of decentralisation?
A. Speedier decisions B. Better motivation at lower levels C. Tighter, fully centralised control D. Develops managerial talent
Answer: C. Decentralisation, by definition, loosens central control.
- Authority flows downward (delegable). Responsibility flows upward (delegable). Accountability flows upward (NOT delegable).
- Acceptance theory of authority — Chester Barnard (1938).
- Types of authority: Line, Staff, Functional, Personal.
- Parity principle: authority must equal responsibility.
- 3 steps of delegation: Assign duties → Grant authority → Create accountability.
- Principles of delegation: functional definition, parity, absoluteness of accountability, scalar chain, unity of command, result-orientation.
- Barriers: manager (fear, perfectionism), subordinate (fear of failure, dislike), organisation (centralisation, weak controls).
- Delegation (between two persons) vs Decentralisation (firm-wide philosophy).
- Decentralisation: faster, motivating, talent-developing — but coordination cost and inconsistency risk.
- Empowerment extends delegation to genuine decision authority + information + resources.