Delegation implies transfer of authority, from a superior to his subordinate. It is an essential concept of an 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.

The following points highlight the importance of delegation in effective organising:
(i) Effective management: Delegation gives employees more time for strategic planning and policy making. It enables the manager to assign the routine tasks to his subordinates and concentrate on broad challenges and opportunities.

(ii) Employee development: Delegation causes 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 show 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 the preparation of efficient and experienced managers that can take up leading positions at times of growth of the organisation. That is, workers trained and prepared through delegation contribute to the expansion and growth of the organisation more efficiently.