Delegation of authority refers to the downward transfer of authority from a superior to a subordinate. Its main elements are authority, responsibility and accountability.
Importance of delegation-
(i) Effective Management: By delegating routine work to the subordinates the managers get more time to concentrate on important matters and excel in new areas efficiently.
(ii) Employee Development: Delegation empowers the employees by providing them the chance to use their skills, gain experience and develop themselves for higher position.
(iii) Motivation of employees: Responsibility for work builds the self-esteem of an employee and improves confidence. He/She feels encouraged and tries to improve his/her further performances.
(iv) Facilitation of growth: Trained and experienced employees are able to play significant roles in the launch of new projects by replicating the work ethos they have absorbed from existing units, in the newly set unit.
