question_answer

Mr Inderjeet had started a business of supplying components required in the manufacturing of solar panels. He had started his business five years back and with growing demand, he had opened two more offices. One in Bhopal and the other in Chennai, in addition to the head office in Delhi. He has to travel a lot, from one city to another, related to his business. He tries to look after all the aspects of the business. He also takes all the major decisions himself. For the last couple of months, he is facing a number of problems. He is not able to meet his orders on time, raw material supply is being affected and productivity is falling. His son Dinesh, a management student advises him to change his style of functioning and delegate his authority.

(i) What does delegation of authority means?

(ii) Delegation of authority is important for effective organisation. How? State by giving three reasons.

(iii) Quoting lines from the para, identify and discuss the leadership style of Mr Inderjeet.

Answer:

(i) Delegation of authority refers to the transfer of authority from superior to subordinate for the completion of tasks. (ii) It is a key element in effective organising because of the following reasons: [a] Organisational Growth Delegation helps in expansion and growth of an organisation by providing trained and experienced individuals. It provides a ready workforce to take up leading positions in new ventures or projects. [b] Better Coordination Delegation of authority helps to avoid overlapping of duties and duplication of efforts. It also helps in developing and maintaining effective coordination amongst various departments, levels and functions of management. [c] Basis of Management Hierarchy It establishes superior-subordinate relationships, which are the basis of the hierarchy of management. Every individual in the organisation knows that he is accountable to whom. (iii) Mr Inderjeet is an autocratic leader. Lines which indicate it are, "He tries to look after all ...... himself." An autocratic leader is one who centralises all decision-making powers in himself and exercises complete control over his subordinates. He gives orders and insists that they are obeyed. He does not include employees in the decision-making activity.