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

Meera, a sales head at an Indian apparel firm, tells her team lead to finalise discounts for dealers but does not tell him the maximum discount he may approve. Which essential element of effective delegation is mainly missing here?

The missing element is a clear definition of the limits of authority. Effective delegation requires the superior to state what decisions the subordinate may take and up to what extent, such as the maximum discount, otherwise the subordinate is uncertain and may overstep or hesitate.

  1. AClear definition of the limits of authorityCorrect
  2. BControl over the subordinate's accountability
  3. CCentralisation of decision making
  4. DUnity of command

Explanation

Effective delegation needs the scope and limits of authority to be clearly specified. Here the maximum discount is not stated, so the subordinate cannot know the boundaries of his power. Unity of command is not the issue, as he still reports to one superior.

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