The downward transfer of authority from a superior to a subordinate to operate within prescribed limits is called:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Delegation
Option (1) Decentralisation — Incorrect. Decentralisation spreads the authority to take decisions to all levels of the organisation as a matter of policy. Delegation happens between one superior and his subordinate; decentralisation is delegation carried to every level.
Option (2) Delegation — Correct. Delegation is the downward transfer of authority from a superior to a subordinate. The manager passes on part of his work with the authority needed to do it, within limits he sets. He stays answerable for the result.
Option (3) Accountability — Incorrect. Accountability is the subordinate’s answerability for the result of the work. It flows upwards, not downwards.
Option (4) Departmentalisation — Incorrect. Departmentalisation is the grouping of similar jobs into departments, a step of the organising process.
NCERT (2026-27 Edition): “Delegation A manager, no matter how capable he is, cannot manage to do every task on his own. The volume of work makes it impractical for him to handle it all by himself. As a consequence, if he desires to meet the organisational goals, focus on objectives and ensure that all work is accomplished, he must delegate authority. 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. …” |
Note: The same/similar question has been asked in different years by NTA as per the details given below:
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 24-05 S2 | – | – | 14-06 S3 | – |