Organisation
In a growing technology firm, the CEO decided to reorganize operations to improve efficiency. The company adopted a formal organization structure by clearly defining roles and responsibilities for each employee, creating specialized departments such as R&D, Marketing, and Customer Support. Job descriptions, reporting relationships, and workflows were documented in an organizational chart.
However, alongside this structure, the company recognized the importance of informal organization—social networks and personal relationships among employees. For example, employees from different departments formed a cross-functional team to brainstorm innovative ideas over coffee breaks, fostering collaboration beyond formal channels.
To ensure smooth operations, the CEO implemented delegation of authority by empowering department heads to make decisions within their domains, such as approving budgets and setting project timelines. This delegation freed the CEO to focus on strategic planning. However, the CEO made it clear that accountability remained with the department heads—they were responsible for ensuring tasks were completed and goals met.
This combination of structured formal processes, informal collaboration, and clear delegation of authority improved decision-making, enhanced employee morale, and boosted the firm’s overall productivity.
According to the above case, the accountability after delegation is retained by:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Department Head
Accountability means being answerable for the final outcome of the work.
Option (1) Subordinate — Incorrect. The case does not make the staff working under the department heads answerable for the result.
Option (2) Department Head — Correct. The CEO delegated authority to the department heads to approve budgets and set timelines. He made it clear that accountability remained with the department heads: they had to see that tasks were completed and goals met.
Option (3) Team — Incorrect. The cross-functional team in the case met over coffee to share ideas. It is part of the informal organisation and holds no formal accountability.
Option (4) Organization — Incorrect. Accountability is fixed on a person holding a position, not on the organisation as a whole.
NCERT (2026-27 Edition): “(iii) Accountability: Delegation of authority, undoubtedly empowers an employee to act for his superior but the superior would still be accountable for the outcome: Accountability implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability. It cannot be delegated and flows upwards, i.e., a subordinate will be accountable to a superior for satisfactory performance of work. …” |