The following points highlight the importance of delegation of authority:
(i) Managerial efficiency: Delegation of work to subordinates helps a manager to concentrate on other areas of concern. Besides, it provides him the opportunity to explore new work techniques. For example, if a manager delegates the basic work to his subordinate, he can put his mind into exploring ways to improve efficiency.
(ii) Employee development: Delegation makes subordinates to accept accountability and exercise judgement for solving problems. This helps in training them and improves self confidence and willingness to take decisions.
(iii) Motivation: Delegation motivates the employees to work with greater responsibility. Delegation shows the trust and confidence of superior on his subordinates. It provides them satisfaction in terms of recognition and use of authority.
(iv) Growth: Delegation facilitates easy growth and expansion. Delegation helps in preparing efficient and experienced managers that can take up leading positions at times of growth of the organisation. In other words, workers trained and prepared through delegation contribute towards the expansion and growth of the organisation.
(v) Better coordination: The three elements of delegation viz., authority, responsibility and accountability help to define powers, duties and answerability related to various job positions. It provides clarity in duties to be performed and avoids overlapping and duplication of work. Such clarity helps in bringing effective coordination among the departments, levels and functions of management.