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

Rajesh, a sales director, delegates the task of preparing a quarterly dealer-incentive report to his manager Sunita, and she makes a serious error. Which statement is correct under accepted management theory?

Sunita bears responsibility for performing the delegated task, but Rajesh stays accountable to his own superiors for the outcome. Authority can be delegated, yet ultimate accountability cannot be transferred away, so delegation does not free the delegator from answerability for results.

  1. ARajesh is free of all liability because he delegated responsibility
  2. BSunita alone is accountable, since accountability moves wholly downward
  3. CSunita is responsible for doing the task, but Rajesh remains accountable to his superiors for the resultCorrect
  4. DNeither is accountable because authority was delegated

Explanation

Authority and the duty to perform can be passed down, but ultimate accountability to the superior cannot be shed. Sunita answers to Rajesh for her performance, and Rajesh answers upward for the outcome. Saying delegation removes his liability is the key mistake.

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