Delegation of authority establishes superior-subordinate relationship. It show the degree and flow of authority in an organisation.

Identify the importance of delegation shown here.

Basis of management hierarchy

The correct answer is option (3) : Basis of management hierarchy

The importance of delegation shown in the given context is :

3. Basis of management hierarchy

Delegation of authority helps establish the superior-subordinate relationship and defines the degree and flow of authority in an organization. This forms the basis for the management hierarchy within the organization.