- Company’ s History: The history of the company influences the degree of delegation A company grow-n over a period of time has a tendency to centralize powers. When a concern is small then most of the decision-making is done by the owner. With the growth of business” the tendency to centralize powers remains. On the -other hand if a concern is the outcome of a merger, amalgamation or combination, there may be a great amount of decentralization.
- Availability of Capable Persons: The element of delegation is linked to the availability of subordinate managers. If sufficient persons are available who can take responsibility then delegation can easily be done. Generally, managers complain that sufficient subordinate managers are not available who can be assigned important, duties. Unless subordinates are delegated the powers they win not learn the art of management.
- Importance and Costliness of Decision: The importance and costliness of decisions greatly influences the degree of delegation. Generally speaking, the costlier and more important the decision, the greater the probability of its being made at the upper level of the managerial hierarchy. Decision-making also requires various facts and figures about the issue. A manager will ensure that he gets all required information for deciding the issue. This type of information is easily available at higher levels of management.
- Size of the Enterprise: The ex-tent of delegation is linked to the size of the enterprise. In a large unit more decision making is needed at various levels of management. The problems of communication and co-ordination often arise in such units. If decision making is closer to the place of action it will save time, paper work is reduced, misunderstandings in con-1InUllication can largely be eliminated.
- Available controls: A manager delegating authority want to be sure that it is used in accordance with his intentions and the general objectives of the! organization. In order to achieve this there must be control devices. Generally, managers hesitate to delegate due to the reason that they do not know how to control.
- Types of enterprise: The degree of delegation of authority may also be influenced by the type of enterprise. If the enterprise is in an industry which is rapidly expanding, as in the electronic field, top. management will have to delegate otherwise it will be over burdened with many decisions.
If the enterprise operates in a static industry then all decision-making is done at the central level In cage, of banking and insurance the growth is slow and decision-making remains at the top.
- Environmental factors: In addition to internal factors delegation may be influenced by internal factors too. These factors may be natural unions, government control over business and tax policies. Some large concerns have to deal with workers unions at national level. All the negotiations are done and decisions are taken at national level. In such a situation the things are decided at head quarter level and are applicable at all levels.
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