Page 101 - Cambridge IGCSE Business Studies

7: Organisation and management

Delegation

It is not possible for managers to complete all business tasks. They don’t have the
time and, in some cases, may not have the necessary skills. Therefore they need to

delegate some of the tasks to workers in a lower level of the business – subordinates.
Delegation is giving the authority to subordinates to make decisions and complete
tasks. Successful delegation requires the worker not only to be given the authority to
complete the task, but also the resources and cooperation of other workers.
Managers are sometimes not keen to delegate tasks. Some managers believe

that ‘if you want it done right, you have to do it yourself’. They do not trust the
subordinate to do a good job.
By delegating tasks some managers fear they will lose control of decision-
making. They may even feel threatened by subordinates who can complete a task to

a better standard than the manager.
However, if the issues of control and trust are overcome, then delegation can

benefit both the manager and subordinates.
■ Managers have time to focus on more complex tasks of greater importance.
■ It can motivate workers who are given the opportunity to take on responsibility and
develop their skills.
■ Delegation is a way of developing the skills of workers and increasing the flexibility
of the workforce.

■ The quality of the work is often improved because lower level workers have better
skills than their managers for completing certain tasks.
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ACTIVITY 7.7

Go-by-Car is a large car rental company that operates through an extensive network of local offices in many countries

throughout the world. Each country (in some larger countries each region) has a director who is responsible for, among other
things, long-term planning.

Small teams manage and lead local Go-by-Car offices. Each office has a manager who needs to have the skills to
motivate, lead and influence others. Local managers have the delegated authority to make decisions which aff ect their
customers without referring back to senior management. Delegation brings many benefits to local managers, their team and
Go-by-Car customers.
1 What is meant by ‘delegation’?
2 Identify and explain two functions of Go-by-Car managers.
3 Identify and explain two advantages and two disadvantages to Go-by-Car of delegation.

TEST YOURSELF
1 State the five functions of management.
2 Why do some managers not delegate tasks to subordinates?

Leadership styles

Leadership is an important role of a successful manager. Employees will want to
follow and help a popular leader to achieve business goals.