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

In the context of management, delegation of authority means:

Delegation of authority means a manager entrusts part of his work to a subordinate and gives the subordinate the right to make decisions needed to complete it. It is a sharing of working power, not a transfer of ownership or a disciplinary action.

  1. ATransferring ownership of the firm to a subordinate
  2. BEntrusting a part of a manager's work and the right to take decisions on it to a subordinateCorrect
  3. CDismissing a subordinate who fails to perform
  4. DCombining several departments under one head

Explanation

Delegation is the process by which a manager assigns work to a subordinate and gives the authority needed to carry it out. It does not transfer ownership, nor is it a disciplinary step or a merger of departments.

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