It helps manager to extend his …

The concept referred here is 'Delegation'. Delegation implies transfer of authority, from a superior to his subordinate. It is an essential concept for effective organisation as it lowers the burden on the manager and thereby, facilitates the manager to focus on activities that command high priority. Also, the managers can extend his area of operations once he delegates the work to subordinates. In addition to this, it provides the subordinates with more opportunities for growth. It helps in efficient completion of tasks as the subordinates can now show their skills and exercise initiative.

Elements of delegation are:

(a) Authority: Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. It flows from top to bottom.

(b) Responsibility: Responsibility refers to the obligation of a subordinate to properly perform the assigned duty. It flows upwards.

(c) Accountability: Accountability refers to answerability to the outcome of the assigned task.