Non Financial Incentives - Delegation 1.4.4

Delegation - Where responsibility for carrying out a task or role is passed onto someone else in the business.

Delegation involves the assignment to others of the authority for particular functions, tasks, and decisions. Delegation can allow subordinates to gain more autonomy and become empowered leading to an increase in performance

The main advantages and disadvantages of delegation can be summarised as follows:

Advantages
Reduces management stress and workload Allows senior management to focus on key tasks Subordinates are empowered and motivated Better decisions or use of resources (potentially) Good method of on-the-job training  Disadvantages Cannot / should not delegate responsibility Depends on quality / experience of subordinates Harder in a smaller firm May increase workload and stress of subordinates