Delegation of Authority: Definition and Guide

Executives often complain that they don't really have time to actually manage personnel. The daily tasks have grown to such an extent that they no longer have time for employee appraisals. Personnel management is part of the manager's job.

The delegation of authority can remedy this. In fact, it can be very motivating for the employee. However, it can also be demotivating. Careful preparation, conducting the appraisal interview on a cooperative level and with time, and setting milestones correctly are important building blocks for making the delegation of authority truly motivating.

In this article, we will examine the essentials which have to be considered when delegating authority. We will also provide you with a decision tree, which is going to help you when delegating authority.

The definition of authority delegation

Delegation of authority means the transfer of decision-making to suitable persons who have been given the necessary authorizations, competencies, and corresponding responsibility.

The transfer of responsibility triggers a motivation boost for many employees, which in turn has a positive effect on performance. Many managers are very reluctant to delegate, especially at the beginning of their management careers. This is because they are afraid that:

They will lose some of their daily influence on operations and/or the employees.

The employees will take advantage of them, which in turn can lead to more work for them. They will have more responsibility placed on their shoulders without having more time available. This could cause problems when operational performance does not keep up with the increased workload.

How to delegate authority without demotivating employees

If you have chosen the right person, then you don't have to fear that delegating authority will put more work on your shoulders. It is important to make sure that delegation does not mean more work for yourself. You should also remember that you are responsible for any decision made under delegation of authority.

Potential candidates for authority delegation

When delegating authority, it is important to choose potential candidates carefully. The decision on who you are going to delegate responsibility to should also include the following factors:

  • Experience of the candidate in this particular field.
  • The individual's expertise and their knowledge of the job.
  • The desire of the candidate to take on responsibility with an appropriate level of authority.
  • The motivation of the candidate to act autonomously with minimum supervision.

Authority delegation – three levels

  • Authority only under the supervision

This means that you will monitor all decisions made during work (even though not closely) and/or you reserve yourself a certain right or possibility of intervention in accordance with your specifications if necessary without prior consultation.

  •  Authority with consultation

This means that you will closely monitor all decisions made during work and/or you require a prior consultation if necessary without, however, reserving yourself any certain right or possibility of intervention in accordance with your specifications.

  • Authority delegated

You don't monitor the decisions made by the employee and do not reserve yourself any certain right or possibility of intervention in accordance with your specifications –- even if this might be useful at times.

Most common reasons why executives do NOT delegate authority

  • Unsure how to delegate properly
  • Uncertainty as to whether the employee has actually understood the objective of the task and is committed to the
  • complete task completion
  • Uncertainty as to whether the employee even has the skills to complete the task
  • Fear of losing control – as a manager you always have overall responsibility
  • Attitude: "It's much faster if I do it."
  • Attitude: "I can do better anyway."
  • Fear of being no longer needed
  • Fear that the management will judge the delegation as negative

In order to overcome these convictions and prejudices, the delegation of authority requires a management style that is based on the fact that you can trust your employees. This trust has to be built first.

The best practices of delegation of authority

Transfer of decision-making authority, powers, and responsibilities to others, usually to members of the downstream level. Today, the delegation of authority also includes the transfer of the necessary factual, personal and financial competencies, rights, and powers, as well as responsibility for the proper and timely fulfillment of the task.

As part of the delegation, employees decide and act independently in a more or less clearly defined area of ​​responsibility, but then also have to take responsibility for their decisions and actions. In order to take on responsibility, a number of requirements must be met:

  • Employees must be systematically informed
  • They must have sufficient specialist knowledge and work experience 
  • Powers and responsibilities must be clearly defined.

The aim of the authority delegation is above all to reduce the complexity of the tasks of the executives by relieving them in the operational area. In principle, delegation can be expected to increase the employees' motivation, as this addresses their motivation for self-realization. Acting independently leads to higher job satisfaction and identification with the task. Your skills can develop in a wide variety of ways, as intensive use of knowledge and skills, thinking in contexts and continuous learning are encouraged.

The basic principle of delegation states that task, competence, and responsibility must correspond exactly or, in other words, must be "congruent". This requirement is consequently referred to as the congruence principle of delegation needs to carry out a task successfully, but on the other hand, it also means the skills on the part of the employee, which are the prerequisites for accomplishing a certain task.

Authority is the formalized right to use the resources of an organization to carry out delegated tasks.

Authority should not be confused with power. They define what a person is entitled to in a certain position. Determines what it can actually do. At the same time, you can have power without having authority.

In the organizational sense, the following also come into consideration: the transfer of tasks, decision-making powers, and responsibility.

Without further information, delegation usually means the transfer of decision-making authority in the form of the right to sign. It is not identical to cooperative leadership which involves employees in management decisions. Delegation usually transfers decision-making powers when making substantive decisions!

The transfer of powers to subordinates can take place in several stages, while a distinction exists between executive authority and decision-making authority. Delegation of authority to perform certain functions can be one-time or permanent. Delegation is recommended as a means of leadership.

Problems of the delegation of authority

Delegating sounds easy, but often it isn't. Because when delegating you have to consider: Delegating means investing trust and time in assigning a task to others, giving them the freedom to perform this task and deliver the expected result. 

At the end of the day, the result must be checked and evaluated. There is always a risk that the task will not be carried out to the extent that the manager expected it to be.

When is authority delegation done right?

In some companies, delegation is often used to shift work onto others and to make them pure “executors” who are no longer allowed to develop their own initiative.

When used sensibly, authority delegation can be enriching for managers and employees, when the supervisor transfers decisions to his employees, but only delegates "executive responsibility", but not his "managerial responsibility" so he cannot fundamentally evade his responsibility!

A delegation of tasks can only work if the necessary authorizations are passed on to the relevant employees. The transfer of clearly defined areas of responsibility, including competence and responsibility, creates autonomous room for maneuver for the employees. As a rule, agreements are made in a conversation between the line manager and the employee, which clearly define the “delegation package”. 

The associated goals, tasks, and decision-making powers must be coordinated, and any third parties affected must be informed. The employee's independent decision-making and action improve their quality of work, new performance potential is mobilized, and job satisfaction is increased. 

This is especially true if the employee feels that he is being challenged appropriately. Delegation to “darlings” or to specialists does not constitute support. The boss achieves a balanced and fair image through rotating, diversified or flexible delegation.  

Many employees acquire a lot of competence and can be used in a variety of ways, failures in certain areas are easier to balance! The responsible employee is not obliged to do the work personally but is always responsible for its results.  

The head of a large organization seldom communicates with lower-level subordinates who are actually performing most specific tasks. Nevertheless, he is responsible for the affairs of the company and its subordinates and must always remember the famous sentence of former US President Harry S. Truman: "There is no one else who bears responsibility." 

The delegation of authority decision tree

Use this decision tree to get help when making a decision about whether or not you should delegate authority.

SCENARIO 1

The employee does not have the required qualifications and/or experience.

  • No, it makes sense to delegate responsibility only if the employee has the right qualifications and/or experience. If not, delegating authority will lead to a demotivation of your employees and a less motivated workforce which in turn negatively affects performance.

The advantages for you personally are limited here as well since you will have to continue to take on some of the responsibility. If you have already delegated responsibility but are not happy with the results, then it makes sense to carry out an in-depth analysis of why this was unsuccessful.

  • Yes, it can be very motivating for your employees if they are given more responsibility. This will lead to more satisfied employees who are usually more motivated and increase performance.

You will have to take on less responsibility, which can free up time to focus on other projects or tasks. However, you are still accountable for the decisions that are made. It makes sense to carry out an in-depth analysis to find out why this was not successful when delegation does not have the desired effect.

SCENARIO 2:

The employee is ready for responsibility delegation, but it is very likely that the employee will not live up to your expectations.

  • No, delegating responsibility does not make sense if there are doubts about how well the employee will perform. If you do choose to delegate, then you will have to regularly monitor and check on progress made by your employees. This way you can see whether or not they are living up to your expectations.

You should regularly monitor performance so that any problems can be addressed at an early stage before they reach their full potential for causing problems. However, you still have to regularly monitor performance so that any problems can be addressed at an early stage before they reach their full potential for causing problems.

  • Yes, although you have your doubts about how your employees will perform, the positive effect on the motivation of your employees could lead to positive results.

You should monitor performance regularly so that any problems can be addressed at an early stage before they cause serious damage. As a rule of thumb, it is important to think about whether or not you are willing to take responsibility if things go wrong. The advantages outweigh the disadvantages here because delegation increases employee motivation and leads to beneficial results even in cases where you do not achieve 100% satisfaction with the outcome.

SCENARIO 3:

There are no doubts regarding the suitability of the employee and a good relationship.

  • Yes, the delegation will lead to a positive development of the relationship between you and your employees. They should feel motivated by responsibility delegation because it brings with it a greater opportunity for personal development. It makes sense to delegate responsibility in cases where you have a good relationship with your employees and there are no doubts about their suitability.

As the employer, you remain accountable for any decision made under delegated authority. This can be very motivating for your employees, which leads to better results from them, but it is important to monitor performance regularly so that problems can be addressed at an early stage before they reach their full potential for causing damage.

  • No, this could lead to a demotivation of your employees through a lack of trust in them. It would not make sense to delegate responsibility if you do not trust your employees or there are doubts about their suitability for the task.

Your employees should feel motivated by responsibility delegation because it brings with it the greater opportunity for personal development, but they will also need to respect the boundaries of authority that come with it. As the employer, you remain accountable for any decision made under delegated authority. This can be very motivating for your employees which leads to better results from them, but it is important to monitor performance regularly so that problems can be addressed at an early stage before they reach their full potential for causing damage.

SCENARIO 4:

The employee has a good relationship with the manager and high motivation; although there are doubts about the suitability of the employee for responsibility delegation.

  • Yes, although you have your doubts about how your employees will perform, the positive effect on the motivation of your employees could lead to positive results.

You should monitor performance regularly so that any problems can be addressed at an early stage before they cause serious damage. As a rule of thumb, it is important to think about whether or not you are willing to take responsibility if things go wrong. The advantages outweigh the disadvantages here because delegation increases employee motivation and leads to beneficial results even in cases where you do not achieve 100% satisfaction with the outcome.

  • No, delegating responsibility does not make sense if there are doubts about how well the employee will perform. If you do choose to delegate, then there is a risk that you will carry the can when things go wrong. It would not make sense to delegate responsibility if you do not trust your employees or there are doubts about their suitability for the task.

Your employees should feel motivated by responsibility delegation because it brings with it a greater opportunity for personal development, but they will also need to respect the boundaries of authority that come with it. As the employer, you remain accountable for any decision made under delegated authority. This can be very motivating for your employees which leads to better results from them, but it is important to monitor performance regularly so that problems can be addressed at an early stage before they reach their full potential for causing damage.

Conclusion:

Delegation of authority is a very important part of all management-employee relationships. It can benefit both the employer and the employee when it is well thought out and executed. If you still think that delegating responsibility does not make sense, then remember that delegation is not only about sharing responsibilities, but also about giving your employees more independence and increasing their motivation. Make sure you monitor performance regularly to ensure that problems are addressed early before they reach their full potential for causing damage.

Don't do delegations if you don't trust your employees or there are doubts about their suitability for the task; delegation brings with it a greater opportunity for personal development but as the employer, you remain accountable for any decision made under delegated authority. This can be very motivating for your employees which leads to better results from them, but it is important to monitor performance regularly so that problems can be addressed at an early stage before they reach their full potential for causing damage.

Delegation of authority helps both parties involved if there are no doubts about the suitability of the delegator or the employee being delegated to. Trusting your employees and giving them opportunities for development will motivate them more, leading to better results. Regularly monitoring performance ensures problems are addressed early, preventing serious damage or loss in productivity. Delegation brings with it a greater opportunity for personal development but as the employer, you remain accountable for any decision made under delegated authority. This can be very motivating for your employees which leads to better results from them, but it is important to monitor performance regularly so that problems can be addressed at an early stage before they reach their full potential for causing damage.

Delegation makes sense if there are no doubts about the suitability of the delegator or the employee being delegated to. Trusting your employees and giving them opportunities for development will motivate them more, leading to better results. Regularly monitoring performance ensures problems are addressed early, preventing serious damage or loss in productivity.

 

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