Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Read the following passage and answer the following questions.

Nimu Ltd. manufactures toys for children below 12 years. The company implements the plan by clarifying jobs and working relationships for achieving the goal of production of 1000000 toys per month. To achieve this goal, the company divided its activities into purchase, marketing, and finance. Under the marketing department, sales and advertisement activities are grouped. The company makes a framework within which managerial and operating tasks are performed. The manager of the company extends his area of operations as without it, his activities would be restricted to only what he can do.

Which concept is discussed in the below lines?

The manager of the company extends his area of operations as without it, his activities would be restricted to only what he can do.

Options:

Delegation

Decentralisation

Centralisation

Accountability

Correct Answer:

Delegation

Explanation:

The correct answer is option 1- delegation.

Delegation refers to the downward transfer of authority from a superior to a subordinate. It is a pre-requisite 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. Delegation helps a manager to extend his area of operations as without it, his activities would be restricted to only what he himself can do. Delegation helps a manager to extend his area of operations as without it, his activities would be restricted to only what he himself can do. However, delegation does not mean abdication. The manager shall still be accountable for the performance of the assigned tasks. Moreover, the authority granted to a subordinate can be taken back and redelegated to another person. Thus, irrespective of the extent of delegated authority ,the manager shall still be accountable to the same extent as before delegation.