Delegation of Authority Notes For NCERT & CBSE Class 12 Business Studies (Ch – 5)

Delegation of Authority Notes For NCERT & CBSE Class 12 Business Studies (Ch – 5)

Hello students, Delegation of Authority is a topic of NCERT Business Studies Class 12 based on the pattern of CBSE Business Studies Class 12. Use the following information to frame your answers and score extraordinary marks in your BST Class 12 examinations. These Business Studies Class 12 notes are short, crisp, and easy to understand for all. In this article, the following topic is explained in respect of ‘Delegation of Authority for the students who are preparing for the 12th Business Studies Exams.

Delegation of Authority Meaning

Delegation refers to the downward transfer of authority from a superior to a subordinate. Delegation involves granting of authority to subordinates with a view to make them perform the assigned duties. It enables the managers to distribute their workload of work to others and concentrate on important functions which only they can perform better.

Elements of Delegation

The basic Elements of Delegation are Authority, Responsibility, and Accountability.

Authority: Authority refers to the right of an individual to command his subordinates and to take action within the scope of his/her position. Authority is needed to discharge a given responsibility. The Power to produce or use raw materials, spend money or ask for allotment of money, to hire or fire people, etc. has to be delegated to individuals to whom the work is assigned.

Responsibility: Responsibility refers to the obligation of a subordinate to properly perform the assigned duty. The superior must determine clearly the task or duty to be assigned to the subordinates. The duty must be expressed in terms of functions or in terms of objectives.

Accountability: Accountability is to answerability for the outcome of the assigned task. The subordinate is held accountable to the superior. Accountability originates because the manager has a right to require an accounting for the authority delegated and task assigned to a subordinate. The process of delegation of authority is incomplete unless accountability is created.

For Principles of Delegation and Importance of Delegation, click on Class 12 Business Studies

Comparison of Authority, Responsibility, and Accountability

Conclusion: While Authority is delegated, Responsibility is assumed, Accountability is imposed. Responsibility is derived from the Authority and Accountability is derived from Responsibility.

Also, read our other Articles –

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5. Business Risk: Meaning and Cause

For free demos, BST Class 12 videos, Business Studies Class 12 previous year question papers, CBSE Business Studies Class 12 sample papers, NCERT Business Studies Class 12 Solutions, visit us at Takshilalearning. We are also serving online classes for School, Professional, and Skill Development courses. Our courses are comprised of HD video lectures, MCQ series, modules, assignments, sample papers, and notes.

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