Delegation of authority is the process of vesting decision-making discretion in the subordinates by a superior. It is the passing of needed authority to subordinates by a superior to accomplish responsibilities. The manner in which work is delegated directly affects the overall effectiveness of the organization in attaining its objectives. Even with delegation, the manager is still held responsible for the success or otherwise of business operations (ultimate responsibility remains with the superior).
Delegation means giving the subordinates authority to do something which the executive does not have time to do. When the subordinate accepts the assignment through delegation of authority, he assumes responsibility for performing the duties assigned.
a) Chain of command:
Delegated authority need necessarily flow vertically from top level management to lower level management. A single line of authority creates harmony in reporting outcomes of delegated work.