Why Authority Delegation is Important in Businesses?

Why Authority Delegation is Important in Businesses?

If you do not hand over some of your management responsibilities when possible, your staff will lose a sense of responsibility. You spend half of your working time advising employees on a wide range of issues and monitoring the execution of tasks assigned to them. As a result, it is inevitable to create a situation where you, the manager, are overwhelmed with work, and employees sit around waiting for your instructions.

And this situation, by the way, answers the question: “Is it possible to delegate responsibility?” Receiving a new term of reference, the subordinate assumes responsibility for their decisions, even if he does not fulfill them personally. Example: the head of the sales department is not responsible for working behind the counter, but it is he who is responsible to the owner for increasing sales volumes.

The main purpose of delegation is this: to increase the initiative of employees, increasing motivation by increasing responsibility. One cannot expect that initiative will grow only through incentives, employees should be held accountable. The only delegation of authority is the way and many eCommerce marketing agencies are the perfect example of this.

As a result, your personal time is freed up, and you get the opportunity to engage in strategic tasks.

What is the delegation of authority in practice

In the absence of delegation, regression is inevitable, since the owner naturally moves away from understanding many processes, he has higher-level tasks.

In the second step, you know how to create a product and how to sell it. This knowledge and common sense are sufficient for effective management.

But to move to the third level of development, it is necessary to manage not processes, but managers. That is, delegate the authority to control the units to the team.

Delegating authority means that you, as the owner, have the opportunity to exclude routine work from your attention. You allow decisions to be made at a lower level in the hierarchy. And this is correct because you are transferring responsibility to people who are closer to production work, to the field of problems. Executors can often solve the issue on their own more quickly and better than under your direct supervision.

Delegation errors

  1. The first and main mistake of delegation is its absence: a situation when the manager is sure that he knows better, and therefore cannot entrust any functions to anyone.
  2. The second mistake that a manager can make is premature delegation: when the responsibility to solve a problem is transferred hastily, without analysis and consideration. What does it mean to delegate responsibilities to an employee who is not ready to perform these functions or does not have complete information about the problem? This means wasting valuable time on inquiries, clarifications, meetings and, as a result, possibly losing a valuable employee: wasted work hours and inevitable criticism can completely kill his initiative.
  3. Assignment of responsibility “over the head” . Many managers, who are accustomed to keeping the entire organization under control, believe that there is no fundamental difference in which level of employee is given an assignment. This approach causes a lot of friction and moral tension in the team. If you are not satisfied with something, for example, the reporting system, then there is no need to discuss this issue with the line employee who prepares the reports. You have a department head for this, you manage him, not the work of the department.
  4. Transfer of functions not intended for performers. There are areas in business development that cannot be passed into the wrong hands without the risk of losing control over the company’s activities.

Key functions of a business owner that cannot be transferred to employees

We examined what kind of work can be delegated to subordinates – this is the solution of operational tasks:

  • Current issues of administration, implementation, control;
  • Highly specialized tasks in which the manager is not an expert;
  • Preparatory work: analysis of competitors’ activities, the initial collection of information for launching a project;
  • point tasks that are not directly related to a long-term strategy: for example, a decision on bonuses for a successfully completed stage of work.

Now let’s talk about what categorically cannot be delegated in the management process.

Development of the company’s ideology

Ideology is often not given enough attention, and yet it is the main tool for business development.

The duty to create and control the strict adherence to ideology by the team is the main task of the business creator. Employees must clearly understand what the organization’s activities are, this is the key to highly motivated employees.

Motivation guarantees coherence, efficiency, and employee loyalty. The level of motivation determines whether your talent pool will grow and work within the company or, having gained experience, go to competitors.

Strategic marketing

Strategic planning is the prerogative of the owner. It is up to you to decide whether your brand will be classic or creative. You define the basic principles of product promotion. It is your responsibility to determine the methods of interaction with the target audience.

If you, as the owner, don’t do these tasks, then sooner or later your managers will start doing it for you. And your business will become completely different from what you saw it, and after that, it will completely collapse: each manager will act based on the needs of his site, not taking into account the general picture. This state of affairs is inevitable at both the local leadership level and at the board level.

Formalization of production technology

Russian business is almost always a very personal story. The owner remembers the names of all clients over the past decade, knows the cost of each chair in the office, and easily operates with sales figures. From the performer’s point of view, these are excellent qualities, but in reality, it means that without close control, the business will die: no one knows how and what works.

To formalize the technology means to describe, fix all the processes so that you can teach this to your staff.

Organization building

Organizational issues involve building a hierarchy, a company’s structure. You need to develop rules, instructions for your managers, that is, to define work standards that will not contradict the basic ideological principles.

Financial management

To secure the management of the company’s financial flows does not mean that the owner should assume the functions of the chief accountant. It is enough to define the policy of handling money. Set templates, standards and then monitor their implementation. A team of managers is in charge of current tasks: paying bills, forming a bonus fund, searching for assets for development.

Security

Here we are talking not only about the safety of physical resources, although this is also about: the creation of a security service, the development of fire-prevention measures, instructions, etc. But it is equally important to ensure legal and financial security: to debug the process of control, registration, analysis of economic activities, develop algorithms for drawing up orders and instructions so that they do not cause contradictions with each other.

Management of co-owners

The necessary function of the owner, which causes the greatest bewilderment among businessmen: they say, if we are equal partners, then what kind of management of co-owners can we talk about?

In fact, such a policy sooner or later leads to a collapse. One decided that it was necessary to change the main direction, the second one-handedly ordered to invest the profit in this or that project – and that’s it, the business destruction process was launched. Therefore, someone alone must be the leader, must take on the burden of responsibility for the final decisions.

Conclusion

A delegation is a necessary tool for doing business, which frees up the owner’s time for solving strategic problems and relieves him of the need to live in his office, solving operational issues.

When delegating authority, the manager is required to find the optimal form of control: too often to demand a report, to stand above the soul means to shackle the employee’s initiative; To trust the professionalism of a manager too much is to assume the risk that the process will get out of control, that a critical mistake will be made that cannot be identified in time. We need to find balance, balance.

In many companies, control is formal and is carried out using a reporting system. But there is no one-size-fits-all solution here: every manager must choose a control method based on the characteristics of his own business.

Harry Miller

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