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CSEET · Business Laws and Management · Principles of Management and Modern Approaches

Sundaram Textiles Ltd has a production department where the manager delegates the task of managing the dyeing unit to a supervisor, gives the supervisor the right to requisition materials up to a set limit, but the manager remains answerable to the managing director for the unit's results. Which statement is correct?

Authority to requisition materials has been delegated to the supervisor, but the manager's accountability to the managing director cannot be delegated away. A superior remains answerable for the results of the work assigned, even after delegating authority.

  1. ABoth authority and accountability have been fully transferred to the supervisor, so the manager is free of answerability
  2. BAuthority has been delegated but the manager's accountability to the managing director cannot be delegated awayCorrect
  3. CAccountability alone has been delegated, while authority remains with the manager
  4. DNeither authority nor accountability exists, since this is only decentralisation

Explanation

Authority can be delegated to subordinates, but ultimate accountability to the superior cannot be passed on completely. Hence the manager stays answerable to the managing director. Option A wrongly says accountability is transferred fully.

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