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

Mr. Iyer, a regional sales head at an Indian FMCG firm, delegates the task of appointing distributors to his area manager, Ms. Banerjee. She makes a poor appointment that causes losses. Which statement is correct about Mr. Iyer's position?

Mr. Iyer remains accountable to his own superior even after delegating, because accountability cannot be delegated away. Ms. Banerjee becomes answerable to him for the task, but the delegator still answers for the overall result of the work assigned under his responsibility.

  1. AHe is free of accountability to his own superior because he delegated the task
  2. BHis accountability to his superior remains, though the operational duty was assigned to Ms. BanerjeeCorrect
  3. CHis accountability passes entirely to Ms. Banerjee and he has none
  4. DHis authority is lost permanently once he delegates

Explanation

Authority can be delegated, but ultimate accountability cannot be shifted away. Ms. Banerjee is answerable to Mr. Iyer, and Mr. Iyer stays answerable to his superior. The option claiming complete transfer is wrong because delegation does not remove the delegator's accountability.

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