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      Question

      Which of the following best describes the concept of

      'Delegation of Authority' in management?
      A The process by which a senior manager permanently transfers both responsibility and accountability to a subordinate Correct Answer Incorrect Answer
      B The process of assigning work and granting the authority necessary to accomplish it to a subordinate, while the delegating manager retains ultimate accountability Correct Answer Incorrect Answer
      C The legal transfer of ownership of company assets from management to shareholders Correct Answer Incorrect Answer
      D The process by which the Board of Directors assigns strategic planning responsibility to the CEO Correct Answer Incorrect Answer
      E The reassignment of an employee's role without any change in their authority or reporting line Correct Answer Incorrect Answer

      Solution

      Delegation of Authority is the process by which a manager assigns work (tasks) and grants the authority required to perform that work to a subordinate. A critical principle is that while authority can be delegated, accountability cannot the delegating manager remains ultimately accountable for the outcome, even though the subordinate is responsible for executing the work. This distinction between responsibility (given to the subordinate) and accountability (retained by the manager) is fundamental to management theory. Failure to delegate effectively leads to over-centralisation, as illustrated in the bank passage in Q12–Q14.

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