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CSEET · Business Laws and Management · Functions of Management

In Kaveri Motors, the sales head wishes to hand over approval of dealer discounts to a regional manager but insists on remaining fully answerable for the results. Which principle of delegation does this reflect?

The reflected principle is that authority may be delegated but the delegator's ultimate accountability cannot be escaped. The sales head can pass on discount approval to the regional manager, yet he remains answerable for the outcome to his superiors.

  1. AAuthority can be delegated, but ultimate responsibility cannot be escaped by the delegatorCorrect
  2. BResponsibility is fully transferred to the subordinate along with authority
  3. CAccountability is created by the subordinate for himself
  4. DDelegation removes the superior's accountability altogether

Explanation

Under the accepted principle, a manager may delegate authority and assign duties, but the superior's accountability to his own boss remains. The other options claim that accountability is transferred or removed, which is incorrect.

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