MANAGEMENT FUNCTIONS & PRINCIPLES

1. Delegation of Authority (Pages 2.13–2.14)

Concept & Meaning

Delegation is an administrative process of getting things done by others by giving them responsibility. When
an enterprise is small, decision-taking power is centralised in a few hands. As the enterprise grows, there is a
need to delegate authority to more and more people to cope with the work. The main purpose of delegation is
to make organisation possible.

Authority is the degree of discretion conferred on people to make it possible for them to use their judgement.
The execution of important decisions taken at the top level by the Board of Directors is entrusted to the Chief
Executive, who in turn delegates to departmental managers, moving down to the level where actual work is
executed.

Work + Power + Responsibility = Delegation

Why is Delegation Needed?

Work increases exponentially as a business grows, making it impossible for a single person to perform every
task (such as hiring employees, paying salaries, meeting customers, purchasing materials, checking
production, and handling complaints). Therefore, the owner divides work among managers to ensure faster
decisions, allow employees to learn new skills, and give managers time for strategic choices.

Organizational Example:
CEO divides responsibilities to specialized wings:
• HR Manager → Recruitment • Finance Manager → Accounts
• Sales Manager → Selling • Production Manager → Manufacturing

Real-Life Example:
Suppose a school principal tells the Sports Teacher: "Organize the Annual Sports Day."
• Responsibility given: Conduct Sports Day.
• Authority granted: Prepare schedules, arrange equipment, and assign duties.
• Accountability: The principal subsequently asks for a performance feedback report.

Elements of Delegation

Delegation strictly involves three interconnected elements: Responsibility, Authority, and Accountability.

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 Delegation Process

1. Responsibility 2. Authority 3. Accountability

1. Responsibility

Meaning: The first step in delegation is the assignment of work or duty to the subordinate (i.e., delegation of
authority). The superior asks his subordinate to perform a particular task in a given period of time. It is the
description of the role assigned to the subordinate. Duties in terms of functions or tasks to be performed
constitute the basis of the delegation process.

• Comes from Superior-Subordinate Relationship: Only a manager can assign work to their respective
subordinate.

• Arises from Assigned Duty: Responsibility exists only when a specific task or project is given.

• Flows Upward: It always flows upward from junior to senior, as the subordinate remains responsible to the
manager.

• Cannot be Delegated Further: A manager may assign work, but he cannot escape his own ultimate
responsibility. If a task fails, the manager is still held answerable to his superiors.

• Obligation to Complete Work: It represents the strict obligation to complete the job as per instructions.

Easy Trick: Responsibility = Duty (“I have to do this work.”)

2. Authority

Meaning: The grant of authority is the second element of delegation. The delegator grants authority to the
subordinate so that the assigned task is accomplished. The delegation of responsibility without authority is
meaningless. The subordinate can only accomplish the work when he has the authority required for
completing that task. Authority is derived from responsibility; it is the power to order or command, delegated
from a superior, to enable the subordinate to discharge his responsibility.

• Right to Take Decisions: It refers to the right to make choices due to a managerial position.

• Determines Superior-Subordinate Relationship: A superior expects compliance with his orders from the
subordinate.

• Influences Employee Behaviour: Given to guide the actions of subordinates for doing things as per
instructions.

• Restricted by Rules: Authority is not absolute; it is restricted by the rules and regulators of the
organisation.

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 • Subjective Exercise: It is always subjective and influenced by the personality traits of the person on
whom it is used.

• Must Equal Responsibility: Authority must be equal to responsibility. Too much authority leads to misuse,
while too little authority makes work impossible to finish.

Easy Trick: Authority = Power (“Power to Decide.”)

3. Accountability

Meaning: Accountability is the obligation of a subordinate to perform the duties assigned to him. The
delegation creates an obligation on the subordinate to accomplish the task assigned to him by the superior.
When work is assigned and authority is delegated, accountability is the natural by-product. Authority flows
downward whereas accountability flows upward. The subordinate should be made accountable to only one
superior. Single accountability improves work and discipline.

• Refers to Performance: It is evaluated directly against the quality and timeline of the final output.

• Cannot be Delegated: Even if the manager passes work down, he remains fully answerable to higher
authorities.

• Measured Through Feedback: Enforced through regular reporting systems and structured performance
updates.

• Flows Upward: Flows strictly upward from subordinate to manager, up to the CEO.

• Unity of Accountability: An employee should answer to only one boss to minimize operational conflict.

Easy Trick: Accountability = Answerability (“I must explain my work.”)

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Difference Between Responsibility, Authority, and Accountability

Basis Authority Responsibility Accountability

Meaning Right to command, decide, Duty or task assigned by a Answerability for the final
and use resources. superior to perform. outcome of work.

Origin Arises from a formal Arises from superior- Arises directly from delegation
managerial position. subordinate relationship. of responsibility.

Delegation Can be shared/delegated to Cannot be fully delegated or Absolute; cannot be

subordinates. passed on. delegated under any
condition.

Flow Flows Downward (Superior Flows Upward (Junior to Flows Upward (Subordinate
Direction to subordinate). senior level). to superior).

Memory Trick Sequence: R → A → A (Responsibility → Authority → Accountability)

Do the Work → Get the Power → Give the Answer

2. Staffing (Pages 2.14–2.19)

Meaning & Concepts

Staffing has been described as a managerial function of employing suitable persons in the organisation for
taking up various positions. It is concerned with filling and keeping filled positions in the organisation. Staffing
involves finding the right persons for the right jobs having the right qualifications. It involves specialized
knowledge and approach and allows more emphasis on human resource and its proper recruitment, selection,
development, appraisal, etc.

Features of Staffing

1. Managerial Function: It is a core function executed alongside planning, organizing, directing, and
controlling.

2. Concerned with Human Resources: Deals entirely with managing individuals as individuals and as a
group.

3. Continuous Function: Running organizations regularly experience vacancies due to expansion,

transfers, retirements, or resignations.

4. Undertaken at all Levels: Required across all operational layers (top, middle, and lower management).

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 5. Optimum Utilisation of Personnel: Aims to avoid wastage of human potential while providing
personal and social satisfaction to employees.

6. Concerned with Employment and Development: Focuses on hiring and systematically preparing
employees for higher future roles.

7. Provides Job Satisfaction: Connected to appropriate job placement and paying employees fairly as
per their skills.

8. Dynamic Function: Changes continuously with advancements in technology and newer recruitment/
selection methods.

9. Influences Performance: The ultimate quality and efficiency of the enterprise depend directly on its
staff.

Importance of Staffing

• Appointing Persons as per Requirements: Fills varying positions systematically within the organization.

• Placing Right Persons at Right Jobs: Meticulously matches role parameters to student/worker skillsets
for premium efficiency.

• Survival and Growth of Enterprise: The continuous expansion of a firm depends heavily on employee
capabilities.

• Optimum Utilisation of Manpower Resources: Prevents over-staffing (unnecessary costs) and under-
staffing (work stagnation).

• Improves Job Satisfaction: Boosts morale through structured training, promotion avenues, and
comprehensive compensation.

• Effectiveness of Other Functions: Planning and organizing cannot yield fruit without competent people
to execute them.

• Helps in Competing: A highly trained, talented workforce provides a unique competitive edge that rivals
cannot copy.

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The Staffing Process (Step-by-Step)

The staffing function is executed through 9 comprehensive sequential steps:

1. Estimating Manpower Requirements: Assessment of human needs in advance keeping in view

production schedules, demand forecasts, etc.
◦ Workload Analysis: Assessment of the number and type of employees required to perform various jobs.

◦ Workforce Analysis: Analysis of the existing workforce to find if they are over-burdened or under-burdened.

◦ Comparison: Matching both to evaluate if excess employees need transfer/removal or new entries are
needed.

2. Recruitment: The process of searching prospective employees and persuading them to apply in the
organisation.

3. Selection: The process of selecting suitable persons for different jobs by screening, testing, and
interviewing.

4. Placement and Orientation: Asking selected candidates to occupy positions (Placement) and introducing
new employees to the environment, rules, and colleagues (Orientation).

5. Training and Development: Improving skills and knowledge to equip employees effectively for their
specific assignments.

6. Performance Appraisal: A systematic method to assess the working performance of an individual against
designated standards.

7. Promotion and Career Planning: Providing avenues for higher responsibilities, status, and emoluments
based on exemplary performance.

8. Compensation: Constructing equitable wage and salary structures that are fair to both employer and
employee.

9. Separation: Handling employee exits gracefully due to retirement, resignation, termination, or

retrenchment.

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 3. Directing (Pages 2.19–2.22)

Meaning & Definitions

Directing function refers to instructing, guiding, communicating, inspiring, and motivating employees to work
for the achievement of organisational goals. The actual work starts when these persons get instructions from
their supervisors. Directing function does not mean only to give instructions but also requires that the work
progresses as per plans.

According to Ernest Dale: “Directing is telling people what to do and seeing that they do it to the best of their
ability.”

Features of Directing

1. Directing Initiates Action: While planning and organizing arrange structural parts, directing activates
people to perform.

2. Continuing Function: A manager must continuously guide, motivate, and lead his subordinates day
after day.

3. Takes Place at Every Level: Every supervisor, from the top executive down to the shop floor manager,
must direct teams.

4. Flows from Top to Bottom: Directions are given by seniors to their immediate subordinates down the
hierarchy.

5. Performance Oriented: The main motive is to optimize output and achieve organizational goals
cleanly.

6. Human Element: Focuses entirely on interpersonal dynamics, cultivating coordination and team spirit.

Elements of Directing

• Supervision: Overseas subordinates at work to ensure work is done as per instructions regularly.

• Motivation: Activating and inspiring people to work willingly. Positive motivation relies on rewards; negative
motivation uses fear.

• Leadership: Influencing people so that they willingly strive to achieve group objectives.

• Communication: The systematic process of passing information and mutual understanding from one
person to another.

Importance of Directing

1. Initiates Action: Sets human and material assets into motion to fulfill plans.

2. Means of Motivation: Inspires workers to give their maximum potential to the enterprise.

3. Integrates Efforts: Merges the diverse individual tasks into a single unified organizational effort.

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 4. Balance in Organisation: Balances different structural changes and varying operational goals without
clashes.

5. Facilitates Change: Guides workers through technological developments and structural transitions
smoothly.

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