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

Which of the following is a recognised benefit of delegation of authority in an organisation?

A recognised benefit of delegation is that it frees senior managers to concentrate on strategic and important matters while developing subordinates' skills and confidence. It does not eliminate planning, control or the delegator's accountability, and it spreads decision making instead of concentrating it at the top.

  1. AIt frees senior managers for strategic work and develops subordinates' skillsCorrect
  2. BIt removes the need for planning and control
  3. CIt makes the delegator free of all accountability
  4. DIt concentrates all decision making at the top

Explanation

Delegation reduces the routine workload of seniors, letting them focus on important matters, and gives subordinates experience that builds their managerial skills. It does not remove control or accountability, and it spreads rather than concentrates decision making.

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