Project – Effects of delegation of authority on the performance of an organization

CHAPTER ONE

INTRODUCTION

• Background to the study

To delegate means to grant or confer hence the manager who delegates, grants or confer authority on other subordinate to accomplish certain duties in form of work.

According to Al-Jammal et al, (2015) delegation of authority has impact on an organization, on the manager and on the employees. They opined the impact of delegation of authority on organization helps in achieving competitive advantage, increase in production as well as effectiveness in task completion. In the same vein, they stated that delegation of authority has lessen the functional burdens of the manager and it has built cooperation and trust between the manager and the employees which led to employees satisfaction. Thus, it reduces physical and intellectual efforts exerted by manager and other employees; on the level of an employee, they stated that delegation of authority works on achieving functional empowerment, constructing alternative and administrative leadership, making employees feel self-confidence and motivation for excellence in performance; and on the level of customer, delegation of authority meets the needs of customers rapidly, delivering or providing the service will not be delayed due to delegation authority.

Therefore, delegation is the process that managers follow in dividing the work assign to him so that he performs that part effectively. The main reasons why delegation is practiced are that:

1. It will be more efficient because it will fasten decision taking the organization
2. It is good training for junior staff as they will learn to make decision and live with its consequences.

Delegation makes the organization more flexible and adaptable. In recent years much emphasis has been placed on the important role of delegation of authority. It is a well known fact that the success of any organization depends on the ability of the manager to delegation authority to his subordinates. It is not possible for a manager to perform all the duties required for the production and marketing of goods efficiently.

The task of supervising human and non-human resources by one supervisor is enormous. This therefore, calls for the delegating of authority and responsibilities to subordinate.

Delegation is therefore a process where manager transfer part of his authority for the for the tasks remains with the manager and is not delegated through delegation is delegated with trust and the minimum of necessary control

Thus, the project shall discuss the significance of delegation of authority on the performance of an organization and the effect and prospects of delegation authority Cole, S. (2009).

 

1.2   Statement of the problem

There is no doubt that delegating authority in organizations sometimes suffered setbacks. The project work tends to look at the problems associated with delegation of authority in organizations. Lack of confidence in the subordinate, because of the fear that the quality of performance will fall when it is delegated to subordinate is a major problem.

There may be financial loss and delay resulting from poor performance of inexperienced subordinates. This is the problem under investigation in this work.

 

1.3   Objectives of the Study

The main objective of the study is to examine the effects of delegation of authority on the performance of an organization.

Other specific objectives are:

1. Find out whether delegation is a variable tool for the management of manpower.
2. Determine if there are problems being encountered by delegating, authority in Keystone Bank, Lokoja.

• Determine the significant relationship in delegating authority in Keystone Bank, Lokoja.

 

1.4   Significance of the Study

This research work will stimulate the use of delegating authority by the management of Keystone Bank, Lokoja.

It will also be of value to future researchers as it will serve as reference material to them.

The study will help student to have knowledge and understanding of the act of delegating authority.

Finally, to the researcher, it is part of the requirements for the award of his Higher National Diploma in Business Administration.

 

1.5   Research Questions

The following hypothesis has been formulated to test their validity.

1. Delegation is a veritable tool for the management, and development of man-power in Keystone Bank, Lokoja.
2. What are the problems encountered in the process of delegating authority in Keystone Bank, Lokoja.

• What is the significant relationship in delegating authority in Keystone Bank, Lokoja.

1. How does delegating authority is beneficial to Keystone Bank, Lokoja.
2. How does delegating authority have effect on Keystone Bank, Lokoja.

 

1.6   Scope of the Study

The study covers the meaning of delegation in authority, importance of delegation, relationship between authority and responsibility, level of delegation, effects of delegation of authority on the performance of an organization, way of ensuring effective delegation of authority and responsibility in the organization, why a manager may refuse to delegate authority.

 

1.7   Limitations and Constraint of the Study

This work is limited and constrained by:

1. Time factor: this research as carried out within a short period of time, the affected the response of the respondents because very little time was given to them to fill the questionnaire.
2. Unco-operative attitude of respondents: there are times when appointments were not honoured by the respondents.

• Finance: this was another major problem that confronted the researcher. The cost of local running in collecting data needed for the work is enormous.

1.8   Definitions of Terms

• Authority: it is simply mean that right owned by superior officer to give direction to others and power to exert influence or enforce obedience.
• Power: it is the ability to exert influence on other people.
• Delegation: it is the process of assigning formal authority and responsibility for carrying out certain activities to subordinates.
• Control: this is the power to influence or direct people’s behavior or the course of events.
• Motivation: this is the act or process of encouraging work to put in their best in the organization.
• Staffing: it is the manning of the organization structure through the proper and effective recruitment, selection and development of employees to fill roles designed in the structure.
• Workers: this is a person who does a particular job to earn money in the organization.
• Responsibility: this simply means being answerable to a superior officer for getting a piece of work done by subordinates.
• Accountability: this is the obligation of an individual or organization to account for his activities.
• Duty: it can be defined as something that one is expected or required to do by moral or legal obligation.

 

Project – Effects of delegation of authority on the performance of an organization