Business – 7.1 Organisational structure – Control, authority and trust | e-Consult

Answer:

1. When a manager delegates authority, they empower sub‑ordinates to make decisions needed to complete their tasks.
2. This empowerment ensures that the person who is responsible for a job has the necessary power to allocate resources, solve problems, and direct staff.
3. Without delegated authority, the responsible employee may be unable to meet objectives, leading to delays and reduced accountability.
4. Example: In a manufacturing firm, the production supervisor is responsible for meeting daily output targets. By delegating authority to line leaders to adjust shift schedules and approve overtime, the supervisor can effectively ensure the target is met. If the supervisor retained all decision‑making power, line leaders would have to seek approval for every change, causing bottlenecks and jeopardising the output.