ABC Corporation is a multinational company that manufactures and sells consumer electronics. To ensure smooth operations, it follows a well-defined organizing process, which includes identifying tasks, grouping similar activities, assigning responsibilities, and establishing reporting relationships.
The company follows a structure where employees are grouped based on their expertise. Departments like Marketing, Finance, Production, and Human Resources operate independently, ensuring specialization and efficiency. However, in its international operations, ABC Corporation adopts a structure where each division operates as a separate entity based on regions such as North America, Europe, and Asia. This helps the company cater to regional market needs effectively.
Within the company, two types of organization exist. One organization is structured with clearly defined roles, responsibilities, and hierarchy. On the other hand, the other organization consists of unofficial relationships among employees, such as friendships and personal networks, which enhance teamwork and communication beyond the official chain of command.
To ensure smooth delegation of tasks, authority and responsibility are transferred to subordinates. It empowers employees, reduces the workload of senior managers, and enhances decision-making efficiency.
Through a combination of well-structured organizational processes and flexible informal interactions, ABC Corporation maintains operational efficiency while fostering a collaborative work environment.
Why is delegation important?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → To reduce the workload of senior managers
Option (1) To enhance the workload of seniors — Incorrect. It is the reverse. Delegation passes work down to subordinates, so the superior’s load falls.
Option (2) To restrict informal interaction — Incorrect. Delegation is about authority and responsibility in the formal structure. It does not limit friendships or informal contact.
Option (3) To reduce the workload of senior managers — Correct. At ABC, authority and responsibility are transferred to subordinates, which empowers them and reduces the workload of senior managers. Delegation means passing authority downwards to a subordinate along with the responsibility for the work. With routine work handed down, managers are free to concentrate on more important matters, and subordinates get a chance to grow.
Option (4) To increase the decision making power of seniors — Incorrect. Delegation gives decision-making authority to subordinates. The seniors’ power to decide is shared, not increased.
NCERT (2026-27 Edition): “Importance of Delegation Delegation ensures that the subordinates perform tasks on behalf of the manager thereby reducing his workload and providing him with more time to concentrate on important matters. Effective delegation leads to the following benefits: |