Project Materials

BUSINESS ADMINISTRATION

AUTHORITY DELEGATION AS A STRATEGIC TOOL FOR MANAGEMENT EFFICIENCY

AUTHORITY DELEGATION AS A STGIC TOOL FOR ICIENCY

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FIRST PART

INTRODUCTION

1.1 BACKGROUND STUDY

One of the goals of establishing a business is to achieve a competitive advantage and make a profit. Without personnel carrying out their allocated obligations, it may be difficult and time-consuming for businesses to fulfill their goals. Thus, employee performance is an essential factor in determining organizational objectives. According to Al-Jammal, Al- Khasawpeh, and Hamadat (), firms gain key competitive benefits from employees who are engaged in their job and devoted to their organizations, such as increased productivity and lower employee turnover. Thus, it is unsurprising that the majority of firms in the modern era find ways to increase employee commitment by delegating some administrative authority to them. Due to the competitive nature of business operations, which can be related to globalization, the firm owner(s) or managers cannot carry the load of business activities alone. Therefore, some obligations must be transferred or allocated to the staff in order to lessen the workload and stress of business owners or managers.

The delegation of authority is one of the modern management practices. Its function distinguishes itself by enhancing employee engagement and generating favorable returns for both (an organization with a management) and (an employee with a customer). On the level of an organization, it achieves competitive advantage, knowledge stockpiling, and boosts productivity and task completion speed. On the level of the manager, it alleviates functional burdens, increases employee happiness, and fosters collaboration and trust between manager and employees, so freeing up the manager’s time for more important tasks. Therefore, it decreases the physical and mental exertion of the management and other employees. On the level of the employee, it focuses on establishing functional empowerment, constructing alternative and administrative leadership, and instilling self-confidence and performance motivation. On the level of the customer, it promptly meets their needs, and delivery or provision of the service is not delayed due to delegation of authority. Providing the customer with a higher level of care and attention, enhancing the customer’s perception, and fostering loyalty and mutual respect for a business and its .

According to Al-Jammal et al. (), delegation of authority has consequences for the company, the management, and the workforce. They believed that delegation of authority has a positive influence on an organization’s competitive edge, output, and job completion efficiency. In a similar spirit, they asserted that delegation of authority has alleviated the functional duties of the manager and fostered collaboration and confidence between the manager and the staff, resulting in employee satisfaction. Thus, it reduces the physical and mental efforts exerted by the manager and other employees;on the level of an employee, they stated that delegation of authority works on achieving functional empowerment, constructing alternative and administrative leadership, and making employees feel self-confidence and motivation for excellence in performance; andon the level of the customer, delegation of authority meets the needs of customers quickly, delivering or providing the service in a timely manner. Previous research such as Al- Jammal et al. () and Kombo. Obonyo, & Oloko (2014), Kiiza & Picho (2014), etc. have demonstrated that delegation of authority will increase employee effectiveness, allowing managers to maintain their position and preserve the process of facilitating business affairs, maintaining employee loyalty, and maximizing performance efficiency. And it functions as a means to assist managers in easing the load of running the business. Yukl and Ping Fu () determined that greater delegation will result in the following factors: the employee’s competence, the employee’s sharing of the manager’s task objectives, the employee’s longstanding and positive relationship with the manager, and the lower-level person’s status. Managers who choose to do everything themselves hinder their own productivity, limit employee performance, and any contribution they do make as managers is frequently accompanied by frustration (Koontz et al, 1983). Consequently, it is essential to add delegation of authority to managerial activities or procedures in order to improve employee performance in pursuit of organizational objectives.

1.2 DESCRIPTION OF THE

A manager delegated authority when he gave one of his staff a task and the authority to carry it out. The abuse of authority by employees is one of the greatest obstacles to transfer of authority. Some employees allow the temporary authority they have been granted to affect their behavior.

When it comes to delegation of power, one of the challenges a manager faces is deciding which employee to allocate responsibility and authority to. It is hard for a manager to handle all responsibilities, but one of the challenges is the fear of delegating to an inept individual. It highlights the reality of the phenomenon of delay in the delivery of services to citizens, reviewers, and routines from the perspective of researchers based on the thoughts of customers seeking a variety of services, functional job methods, and technical tasks performed by Nestle PLC employees, which leads to the capacity to absorb a great deal of time with customers and reviewers in order to obtain the required services. Therefore, the purpose of this study is to analyze delegation of authority as a strategic management efficiency tool.

1.3 OBJECTIVES OF THE STUDY

The purpose of this study is to evaluate delegation of authority as a strategic instrument for managerial effectiveness, using Nestle PLC as a case study. The particular aims are:

Determine whether delegation of authority effects employee performance.

Determine whether delegation of authority increases employee competency.

Examine whether delegation of authority helps save time when performing a task.

4. To determine whether transfer of authority affects the manager-employee relationship positively.

Determine whether delegation of authority expedites the fulfillment of consumer needs.

1.4 QUESTIONS

Relevant research questions associated with this study include:

Does delegation of authority have an effect on employee performance?

Does distribution of authority increase the capability of employees?

Does delegation of authority assist save time when completing a task?

Does delegation of authority change a manager’s and employee’s relationship for the better?

Does distribution of authority expedite the fulfillment of customers’ needs?

1.5 Significance of the Research

This study’s findings help to determine the degree to which centralism and decentralism are employed in the management of Nestle PLC’s affairs, in which a great deal of work and various services are implemented for the local community and citizens in order to improve the quality of service, performance, and speed. Customers will experience increased levels of satisfaction and loyalty as a result of this matter.

The delegation of authority yields beneficial results in terms of efficiency, effectiveness, and empowerment. In addition, the development of alternative leadership, trust, and cooperation between functional high and medium levels or between employer and employee is essential.

This research’s findings can also serve as a resource for other academics who will likely conduct studies on comparable topics.

1.6 RADIUS OF THE STUDY

This study is limited to a case study of Nestle PLC to examine delegation of authority as a strategic strategy for management efficiency.

1.7 LIMITATION OF THE STUDY

In conducting this study, the researchers were hampered by a shortage of time, respondent reluctance, and restricted resources, among others.

1.8 DEFINITION OF TERMS

The degree of discretion in organizational roles that confers the right to utilize discretion and judgment in decision-making to those occupying these positions.

A subordinate is a subordinate staff member who reports to a boss or superior.

A manager is a person who is responsible for planning and regulating the running of a business at any level.

This refers to the organizational processes that allow the transfer of authority from a superior to a subordinate.

This refers to the piece of labor allotted to someone.

Responsibility: The need to carry out specific activities while being held accountable for results.

AUTHORITY DELEGATION AS A STGIC TOOL FOR ICIENCY

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