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CMA Foundation · Fundamentals of Business Economics and Management · Organisation Structure, Responsibility, Accountability and Delegation of Authority

In a Pune manufacturing firm, the plant manager delegates the task of vendor negotiation to the purchase officer. Which statement correctly describes the plant manager's accountability for the outcome of this task?

The plant manager remains accountable to his superior even after delegating vendor negotiation. Authority and task responsibility can be passed down, but ultimate accountability for results cannot be delegated away, so the delegator still answers for the outcome of the work done by the subordinate.

  1. AIt is transferred completely to the purchase officer and the plant manager is free of it
  2. BIt remains with the plant manager towards his own superior even after delegationCorrect
  3. CIt ceases to exist because authority has been handed over
  4. DIt passes to the vendors who accept the purchase orders

Explanation

Delegation passes on authority and creates responsibility in the subordinate, but the delegator's accountability to his own superior cannot be shed. Hence the plant manager still answers for the result. The option saying it is transferred completely confuses delegation of authority with abdication of accountability.

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