Delegation implies transfer of authority from a superior to a subordinate. It is a process that reduces the burden on the manager and allows him to extend his area of operations by delegating work to subordinates. In addition, delegation provides the subordinates with higher opportunities for growth and development. By allowing the subordinates to show their skills and to exercise initiative, delegation helps in building efficiency.
The following points highlight the importance of delegation:
(i) Managerial efficiency: Delegation of work to subordinates allows the superior to concentrate on key areas of concern. That is, with the delegation of routine work to subordinates, managers will be able to focus on higher priority areas. Besides, delegation provides the managers with the opportunity to explore new methods of working and this helps in improving the overall working efficiency in the organisation.
(ii) Employee proficiency: By delegating work, a manager empowers his subordinates by providing them with opportunities to apply their skills. Therefore, the subordinates get a chance to prove their abilities, gain experience and develop their growth and career prospects.
(iii) Motivation: In addition to improving the managerial and employee efficiency, delegation provides the employees with psychological benefits as well. By motivating the employees, delegation encourages them to put in their best efforts. This is because, with higher authority and responsibility, the employees gain confidence and are encouraged to work more efficiently and employee is also rewarded.
(iv) Growth: Delegation facilitates growth and expansion of business. It helps in the preparation of efficient and experienced managers who can take up leading positions in the organisation at the time of growth. Thus, the workers who are trained and prepared through delegation contribute to the expansion and growth of the organisation.