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CSEET · Business Laws and Management · Management Knowledge for Company Secretaries

Consider these statements about delegation of authority. (I) A manager who delegates authority also passes on ultimate accountability to the subordinate. (II) Delegation involves assignment of duty, grant of authority and creation of an obligation on the subordinate. Which is correct?

Only statement II is correct. Delegation includes assigning duty, granting authority and creating an obligation in the subordinate. Statement I is wrong because the superior remains ultimately accountable for the work even after delegating authority, so accountability is not passed fully to the subordinate.

  1. AOnly I is correct
  2. BOnly II is correctCorrect
  3. CBoth I and II are correct
  4. DNeither I nor II is correct

Explanation

Delegation has three elements: assigning duties, granting authority and creating responsibility or obligation in the subordinate. Statement I is wrong because the delegating manager cannot shed ultimate accountability to his own superior; accountability cannot be delegated away.

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