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THE IMPACT OF THE
DELEGATION OF AUTHORITY ON EMPLOYEES' PERFORMANCE
CHAPTER ONE
1.0.
INTRODUCTION:
Delegation of authority is one of modern trends practiced by
managers. It is function stands out contributing and increasing the level of
motivation of employees and achieving positive returns for (an organization
with a manager) and (an employee with a customer) both. On the level of an
organization, it achieves competitive advantage, knowledge inventory, increases
the level of productivity and speed in finalizing tasks effectively. On the
level of manager, it alleviates functional burdens, gains employees'
satisfaction and builds cooperation and trust between manger and employees
giving a chance for manger to have full-time for realization of more important
work. So, it reduces physical and intellectual efforts exerted by manager and
other employees. On the level of an employee, it works on achieving functional
empowerment, constructing alternative and administrative leadership, making
employees feel self-confidence and motivation for Excellency in performance. On
the level of customer, it meets the needs of customers rapidly, delivering or
providing the service will not be delayed due to delegation authority. Giving
the customer a higher level of care and attention, building customer's
perceived and creating loyalty and mutual respect for an organization and
production in which the organization produced.
It can be said that method of delegation authority becomes
inevitable issue for every organization whether in public or private sector. It
is not optional due to many reasons has connected and brought developments and
changes to the organizations including that (increasing its size and diversity
of its products, multiplicity of its products and spread of its branches in
different geographical zones and different local, regional and international
levels. Managers have been imposed for the necessity to have a way for helping
them in facilitating business affairs and alleviating the burdens in which they
aren’t tolerated, implemented and controlled by a manger. From other hand,
different social and environmental transformations at organization have been
changed since of classical school that was differentiated by centralism and
subjecting to orders of mangers without reluctance. Implementing processes and
procedures become more flexible, and free due to employees. The results of
applying this principle has helped employees to be enhanced, imposed different
functional rights for them, and necessity to transform from dictatorship to
democracy associates with modern trends of management and employees' desires
and wishes. In addition, managers will be able to maintain their job position
and preserve the process of facilitating business affairs, employees' loyalty,
enabling to be remained and achieving performance efficiency.
1.2. BACKGROUND OF
THE STUDY:
The concept of delegation of authority as it happens in
industries, service and business organizations has attracted many psychologists
and educations. These great people have carried out series of research on it
with each of them coming up with a theory as it affects decision-making in
organizations. Yet no one theory of delegation can alone satisfactorily explain
the concepts. This is because of the complexity in human behaviour.
Delegation means entrusting to or deputation or representing.
To delegate authority, a manger entrusts his authority to others to perform. It
is an important tool of management. Management is defined as social process
entailing responsibility for an effective planning and regulations of operation
of an organization in fulfillment of a given purpose or task. It can also be
defined as the act and science of achieving the objectives of a business as
organization in the most efficient way.
However, all organization, be it small or large have to take
decision. The purpose of decision-making, as earlier said, is to direct human
behaviour towards a future goal. Decision-making is the selection from among
alternation courses of action, and if there were no alteration, there should be
need for a decision. In making any plan, there must be a decision to take: therefore, it can be said
that planning leads to decision guided by organization policy and objectives.
1.3. STATEMENT OF
PROBLEM OF STUDY:
There are many problems associated with delegating of authority
with regards to making good decision for the organization, especially as there
are many individual differences. Employers know the importance of employee’s
participation and satisfaction and their effects in the achievement of
organization objectives.
To be able to achieve better result in shorter time with
minimum supervision and attention, the manager should ensure that he delegates
his authorities to capable hands, and at the same time, authority should be
delegated with equal responsibility.
The problem areas to be given attention now are:
(a)
Ability or inability to identify subordinate that is capable
(b) Most at
times, authority can be delegated without equal responsibility.
(c) There
is also the possibility that authority is not delegated close to the scene of
action.
(d) Ability
of the manager to identify his limitations and the need to supplement it with
personal influence.
1.4. OBJECTIVES OF
THE STUDY:
The present study aims at identifying the impact of the
delegation of authority on employees' performance at Nigeria Breweries Makurdi.
It has constructed on measuring the impact of delegation on efficiency,
effectiveness and empowerment.
1.5. IMPORTANCE OF
THE STUDY:
It lies on the importance of the topic related to delegation
authority from high management to lower managerial levels of employees.
Studying such phenomenon discovers the level of centralism and decentralism
applied in management of municipality affairs in which a lot of work and
different services are implemented for local community and citizens due to
increasing the level of service, performance and speed. This matter is going to
achieve a higher level of satisfaction and loyalty to customers. Delegation
authority reflects positive returns achieving efficiency, effectiveness and
empowerment. In addition creating alternative leadership, trust, cooperation
between functional high and medium levels or between employer and employees
1.6. RESEARCH
QUESTION:
To address this research problem, it is necessary to build a
conceptual foundation that will enable us to understand the importance of
delegation of authority and its relationship with decision-making. For the
purpose of this study the following research questions are formulated:
· Is there any
significant relationship between delegation of authority and commitment to
work?
· Can management
decision-making be effective without delegation of authority?
· Is it possible
for a manger to delegate his authorities to his subordinate especially when the
issue to be handled is a sensitive one?
1.7. RESEARCH
HYPOTHESES:
Three hypothesizes were included:
1. There is no statically significant for the method of delegation
authority on functional efficiency of employees.
2. There is no statically significant for the method of
delegation authority on functional effectiveness performance of employees.
3. There is no statically significant for the method of
delegation authority on functional empowerment of employees
1.8. SCOPE OF THE
STUDY:
This research work is basically concerned with the
examination of independent variable effecting delegation of authority as it
concerns decision-making. It covers the aspect of responsibility to carryout
activities, planning and ways through which workers could gain more power and
improve their position relative to management only.
1.9. SIGNIFICANCE OF
THE STUDY:
It is expected that at the end of this research work, the
researcher will have succeeded in throwing enough light towards the advantages
of delegating duties to capable hands in an organization. It is also expected
that the company that the researcher sited in the project work as the case
study will also key into the research work and possibly make adjustments in the
areas of their company that is lagging behind due to negligence of delegation
of duty.
1.10. LIMITATION OF
THE STUDY:
This study is however, subjected to some limitations which
could make it not to be exhaustive. Such limitation includes the researcher’s
inability to interview some principal staff of the organization whose
contributions could have been of great help. It is also limited to time and
material resources.
The non-behavioral variable such as change in technology,
political and climatic conditions are not considered in the study.
1.11. DEFINITION OF
TERMS:
Delegation: This is the organization processes that permit
the transfer of authority from superior to a subordinate.
Subordinate: A lower staff that is answerable to a boss or
superior.
Manager: This is regulating the operation of a business
organization one who undertakes the task of planning and at any level.
Task: This implies to piece of work assigned to someone to
do.
Responsibility: Is the
obligation to carry out certain activities with accountability for performance.
Authority: The degree of discretion in organization positions
conferring the persons occupying these positions, the right to use their
discretion and judgment on decision making.
Initiative: Right to think out, and execution of plan.
Duty: What someone is obligated in the terms of contract
agreement.
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