Business Admin. and Management | THE IMPACT OF THE DELEGATION OF AUTHORITY ON EMPLOYEES' PERFORMANCE

THE IMPACT OF THE DELEGATION OF AUTHORITY ON EMPLOYEES' PERFORMANCE

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THE IMPACT OF THE DELEGATION OF AUTHORITY ON EMPLOYEES' PERFORMANCE

CHAPTER ONE

1.0.         INTRODUCTION:

Delegation of authority is one of modern trends practiced by managers. It is function stands out contributing and increasing the level of motivation of employees and achieving positive returns for (an organization with a manager) and (an employee with a customer) both. On the level of an organization, it achieves competitive advantage, knowledge inventory, increases the level of productivity and speed in finalizing tasks effectively. On the level of manager, it alleviates functional burdens, gains employees' satisfaction and builds cooperation and trust between manger and employees giving a chance for manger to have full-time for realization of more important work. So, it reduces physical and intellectual efforts exerted by manager and other employees. On the level of an employee, it works on achieving functional empowerment, constructing alternative and administrative leadership, making employees feel self-confidence and motivation for Excellency in performance. On the level of customer, it meets the needs of customers rapidly, delivering or providing the service will not be delayed due to delegation authority. Giving the customer a higher level of care and attention, building customer's perceived and creating loyalty and mutual respect for an organization and production in which the organization produced.

It can be said that method of delegation authority becomes inevitable issue for every organization whether in public or private sector. It is not optional due to many reasons has connected and brought developments and changes to the organizations including that (increasing its size and diversity of its products, multiplicity of its products and spread of its branches in different geographical zones and different local, regional and international levels. Managers have been imposed for the necessity to have a way for helping them in facilitating business affairs and alleviating the burdens in which they aren’t tolerated, implemented and controlled by a manger. From other hand, different social and environmental transformations at organization have been changed since of classical school that was differentiated by centralism and subjecting to orders of mangers without reluctance. Implementing processes and procedures become more flexible, and free due to employees. The results of applying this principle has helped employees to be enhanced, imposed different functional rights for them, and necessity to transform from dictatorship to democracy associates with modern trends of management and employees' desires and wishes. In addition, managers will be able to maintain their job position and preserve the process of facilitating business affairs, employees' loyalty, enabling to be remained and achieving performance efficiency.

1.2.    BACKGROUND OF THE STUDY:

The concept of delegation of authority as it happens in industries, service and business organizations has attracted many psychologists and educations. These great people have carried out series of research on it with each of them coming up with a theory as it affects decision-making in organizations. Yet no one theory of delegation can alone satisfactorily explain the concepts. This is because of the complexity in human behaviour.  

Delegation means entrusting to or deputation or representing. To delegate authority, a manger entrusts his authority to others to perform. It is an important tool of management. Management is defined as social process entailing responsibility for an effective planning and regulations of operation of an organization in fulfillment of a given purpose or task. It can also be defined as the act and science of achieving the objectives of a business as organization in the most efficient way.

However, all organization, be it small or large have to take decision. The purpose of decision-making, as earlier said, is to direct human behaviour towards a future goal. Decision-making is the selection from among alternation courses of action, and if there were no alteration, there should be need for a decision. In making any plan, there must be a  decision to take: therefore, it can be said that planning leads to decision guided by organization policy and objectives.

1.3.    STATEMENT OF PROBLEM OF STUDY:

There are many problems associated with delegating of authority with regards to making good decision for the organization, especially as there are many individual differences. Employers know the importance of employee’s participation and satisfaction and their effects in the achievement of organization objectives.

To be able to achieve better result in shorter time with minimum supervision and attention, the manager should ensure that he delegates his authorities to capable hands, and at the same time, authority should be delegated with equal responsibility.

The problem areas to be given attention now are:

(a)              Ability or inability to identify subordinate that is capable

(b)             Most at times, authority can be delegated without equal responsibility.

(c)              There is also the possibility that authority is not delegated close to the scene of action.

(d)             Ability of the manager to identify his limitations and the need to supplement it with personal influence.

1.4.    OBJECTIVES OF THE STUDY:

The present study aims at identifying the impact of the delegation of authority on employees' performance at Nigeria Breweries Makurdi. It has constructed on measuring the impact of delegation on efficiency, effectiveness and empowerment.

1.5.    IMPORTANCE OF THE STUDY:

It lies on the importance of the topic related to delegation authority from high management to lower managerial levels of employees. Studying such phenomenon discovers the level of centralism and decentralism applied in management of municipality affairs in which a lot of work and different services are implemented for local community and citizens due to increasing the level of service, performance and speed. This matter is going to achieve a higher level of satisfaction and loyalty to customers. Delegation authority reflects positive returns achieving efficiency, effectiveness and empowerment. In addition creating alternative leadership, trust, cooperation between functional high and medium levels or between employer and employees

1.6.    RESEARCH QUESTION:

To address this research problem, it is necessary to build a conceptual foundation that will enable us to understand the importance of delegation of authority and its relationship with decision-making. For the purpose of this study the following research questions are formulated:     

·        Is there any significant relationship between delegation of authority and commitment to work?

·        Can management decision-making be effective without delegation of authority?

·        Is it possible for a manger to delegate his authorities to his subordinate especially when the issue to be handled is a sensitive one?

1.7.    RESEARCH HYPOTHESES:

Three hypothesizes were included:

1. There is no statically significant for the method of delegation authority on functional efficiency of employees.

2. There is no statically significant for the method of delegation authority on functional effectiveness performance of employees.

3. There is no statically significant for the method of delegation authority on functional empowerment of employees

1.8.    SCOPE OF THE STUDY:

This research work is basically concerned with the examination of independent variable effecting delegation of authority as it concerns decision-making. It covers the aspect of responsibility to carryout activities, planning and ways through which workers could gain more power and improve their position relative to management only.

1.9.    SIGNIFICANCE OF THE STUDY:

It is expected that at the end of this research work, the researcher will have succeeded in throwing enough light towards the advantages of delegating duties to capable hands in an organization. It is also expected that the company that the researcher sited in the project work as the case study will also key into the research work and possibly make adjustments in the areas of their company that is lagging behind due to negligence of delegation of duty.

1.10.  LIMITATION OF THE STUDY:

This study is however, subjected to some limitations which could make it not to be exhaustive. Such limitation includes the researcher’s inability to interview some principal staff of the organization whose contributions could have been of great help. It is also limited to time and material resources.

The non-behavioral variable such as change in technology, political and climatic conditions are not considered in the study.

1.11.  DEFINITION OF TERMS:

Delegation: This is the organization processes that permit the transfer of authority from superior to a subordinate.

Subordinate: A lower staff that is answerable to a boss or superior.

Manager: This is regulating the operation of a business organization one who undertakes the task of planning and at any level.

Task: This implies to piece of work assigned to someone to do.

Responsibility:  Is the obligation to carry out certain activities with accountability for performance.

Authority: The degree of discretion in organization positions conferring the persons occupying these positions, the right to use their discretion and judgment on decision making.

Initiative: Right to think out, and execution of plan.

Duty: What someone is obligated in the terms of contract agreement. 


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