Delegation refers to the ______ transfer of authority from a superior to a subordinate.

Downward

The correct answer is Option (1) → Downward

Delegation refers to the downward transfer of authority from a superior to a subordinate. It is a prerequisite to the efficient functioning of an organisation because it enables a manager to use his time on high priority activities. It also satisfies the subordinate’s need for recognition and provides them with opportunities to develop and exercise initiative.