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

Meera, a regional sales manager at a Pune firm, delegates the task of approving customer discounts up to Rs 5,000 to her team leader Arun. Which statement is correct as per the principle of delegation?

The subordinate becomes responsible to the manager for performing the delegated task, but the manager stays accountable to her own superiors. Accountability cannot be fully passed down, so Meera cannot escape answerability for the approvals Arun makes.

  1. AMeera is freed from all accountability for discount approvals
  2. BArun becomes accountable to no one for the approvals
  3. CArun is responsible to Meera for the task, but Meera remains accountable to her superiorsCorrect
  4. DAuthority and accountability both pass entirely to Arun

Explanation

Responsibility for performing the delegated task passes to Arun, who answers to Meera. However, ultimate accountability to higher management cannot be delegated away, so Meera remains accountable. The other options wrongly say accountability is fully transferred or eliminated.

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