Delegation, Decentralization, and Centralization Assigning part of a manager’s work and power to other workers Responsibility The duty to do a job or perform a task Authority The power within the organization to accomplish an assigned task. Accountability The obligation to accomplish an assigned job or task Copyright © Cengage Learning. All rights reserved.

Steps in the Delegation Process The manager assigns responsibility The subordinate is empowered to do the task Ultimate accountability remains with the manager Copyright © Cengage Learning. All rights reserved.

Decentralization of Authority Decentralized organization Management consciously attempts to spread authority widely in the lower levels of the organization Centralized organization Authority is concentrated at the upper levels of the organization Factors favoring decentralization A complex and unpredictable business environment Decisions that carry low risk or that are unimportant Highly capable lower-level managers with strong decision-making skills Past practices of the firm in decentralizing its structure and decision-making processes Copyright © Cengage Learning. All rights reserved.