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DELEGATION
OF AUTHORITY AS A STRATEGIC TOOL FOR MANAGEMENT EFFICIENCY
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND STUDY
One of the
aims of setting up a business organization is to gain competitive advantage and
to make profit. Without the employees discharging their assigned
responsibilities, the objectives of the organizations may not be achieved
easily and timely. Thus, employee performance is a crucial determinant of
organizational goals. According to Al-Jammal, Al- Khasawpeh & Hamadat
(2015), employees who are engaged in their work and committed to their
organizations give the organisations crucial competitive advantages including
higher productivity and lower employee turnover. Thus, it is not surprising
that most of today’sorganizations find ways to make the employee to be
committed by delegating some managerial authority to them.Due to the
competitive nature of business activities which could be traced to
globalization, the task of carrying the burden of the business activities
cannot be done by the business owner(s) or managers alone. Therefore, there is
need for some responsibilities to be shifted or assigned to the employees which
will reduced the workload and pressure of the business owner(s) or managers
Delegation
of authority is one of modern trends practiced by managers. It is function
stands out contributing and increasing the level of motivation of employees and
achieving positive returns for (an organization with a manager) and (an
employee with a customer) both. On the level of an organization, it achieves
competitive advantage, knowledge inventory, increases the level of productivity
and speed in finalizing tasks effectively. On the level of manager, it
alleviates functional burdens, gains employees’ satisfaction and builds
cooperation and trust between manger and employees giving a chance for manger
to have full-time for realization more important work. So, it reduces physical
and intellectual efforts exerted by manager and other employees. On the level
of an employee, it works on achieving functional empowerment, constructing
alternative and administrative leadership, making employees feel
self-confidence and motivation for Excellency in performance. On the level of
customer, it meets the needs of customers rapidly, delivering or providing the
service will not be delayed due to delegation authority. Giving the customer a
higher level of care and attention, building customer’s perceived and creating
loyalty and mutual respect for an organization and production in which the
organization produced.
According to
Al-Jammal et al.(2015) delegation of authority has impact on an organization,
on the manager and on the employees. They opined the impact of delegation of
authority on organization helps in achieving competitive advantage, increase in
production as well as effectiveness in task completion. In the same vein, they
stated that delegation of authority has lessen the functional burdens of the
manager and it has built cooperation and trust between the manager and the
employees which led to employees satisfaction. Thus, it reduces physical and
intellectual efforts exerted by 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,
making employees feel self-confidence and motivation for excellence in
performance; andon the level of customer, delegation of authority meets the
needs of customers rapidly, delivering or providing the service will not be
delayed due to delegation authority. Past studies such as Al- Jammal et al,
(2015), Kombo. Obonyo, & Oloko (2014) Kiiza & Picho (2014) etc have
demonstrated that application of delegation of authority will help employee
effectiveness to be enhanced, managers will be able to maintain their job
position and preserve the process of facilitating business affairs, employees’
loyalty, and achieving performance efficiency .And it serves as a way to help
manager in alleviating the burden of running the affairs of the business. Yukl
and Ping Fu (1999) established that greater delegation will result to the
following factors: Competence of the employee, sharing of managers’ task
objectives by the employee, longstanding and positive relationship of the
manager with the employee, and the status of the lower-level persons. Managers
who choose to do everything hamper their own productivity; limit their employee
performance and any contribution they do make as managers is often accompanied
by frustration and excessive personal effort (Koontz et al, 1983).Thus, it is
important to incorporate delegation of authority to managerial functions or
practices to increase employee performance towards achieving organizational
goals.
1.2
STATEMENT OF THE PROBLEM
Delegation
of authority involves a manger given one his employees a task to carry out and
the corresponding authority. One of the major challenges of delegation of
authority is the abuse of power by the employees. Some employees let the short
term authority given to them to get into their head and they end up
misbehaving.
The choice
of employee to delegate duty and authority to is one the problems faced by a
manger when it comes to point of delegation of authority. It is impossible for
a manager to carry out all the tasks but the fear of delegating duties to an
incompetent person is one of challenges. It stands out reality of phenomenon of
delay in delivery of services to citizens, reviewers and routines from
perspective of researchers based on thoughts of customers in order to obtain
variety services, functional job methods and technical tasks done by employees
of Nestle PLC which leads the capacity to absorb a long time with customers and
reviewers to obtain the required services. So this study is focused to examine
delegation of authority as a strategic tool for management efficiency.
1.3
OBJECTIVES OF THE STUDY
The general
objective of this study is to examine delegation of authority as a strategic
tool for management efficiency, a case study Nestle PLC. The specific
objectives are:
1. To find
out if delegation of authority influences the performance of employees.
2. To ascertain
if delegation of authority improves employees’ competency.
3. To
examine if delegation of authority helps to save time in carrying out a task.
4. To know
if delegation of authority influence a positive relationship between the
manager and employee.
5. To find
out if delegation of authority helps to meet the need of customers rapidly.
1.4 RESEARCH
QUESTIONS
The relevant
research questions related to this study are:
1. Does
delegation of authority influences the performance of employees?
2. Does
delegation of authority improves employees’ competency?
3. Does
delegation of authority helps to save time in carrying out a task?
4. Does
delegation of authority influences a positive relationship between the manager
and employee?
5. Does
delegation of authority helps to meet the need of customers rapidly?
1.5
SIGNIFICANCE OF THE STUDY
The findings
from this study helps to discover the level of centralism and decentralism
applied in management of Nestle PLC affairs in which a lot of work and
different services are implemented for local community and citizens due to
increasing the level of service, performance and speed. This matter is going to
achieve a higher level of satisfaction and loyalty to customers.
Delegation
authority reflects positive returns achieving efficiency, effectiveness and
empowerment. In addition creating alternative leadership, trust, cooperation
between functional high and medium levels or between employer and employees.
The finding
from this research can also be used as a reference material for other
researchers who will likely carry out a study on a related topic.
1.6 SCOPE OF
THE STUDY
The scope of
this study is restricted to a study of delegation of authority as a strategic
tool for management efficiency using Nestle PLC as a case study.
1.7
LIMITATION OF THE STUDY
Some of the
major constraints the researchers encountered in putting up this research
include lack of time, lack of willingness to give information by respondent and
also limited resources.
1.8
DEFINITION OF TERMS
Authority:
The degree of discretion in organization positions conferring the persons
occupying these positions, the right to use their discretion and judgment on
decision making
Subordinate:
A lower staff that is answerable to a boss or superior.
Manager:
This is regulating the operation of a business organization one who undertakes
the task of planning and at any level.
Delegation:
This is the organization processes that permit the transfer of authority from
superior to a subordinate.
Task: This
implies to piece of work assigned to someone to do.
Responsibility:
Is the obligation to carry out certain activities with accountability for
performance.
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