(A) What is the meaning of delegation of authority ?
(B) Features of delegation of authority.
(C) Is it permissible for the agent to delegate his authority to another? Who is a sub-agent?
(D) Who is a substituted agent? Give illustration.
(E)How much care is needed on the part of the agent in choosing a substituted agent?
(F)What is the difference between a sub-agent and a substituted agent?
Ans:-
A)Delegation of authority –
Delegation of authority is an organizational process in which the manager divides his work among subordinates and gives them responsibility to accomplish the related tasks. Besides responsibility, he also shares power, that is, the power to make decisions with subordinates, so that responsibilities can be completed efficiently.
In other words, delegation of authority involves sharing power down to subordinates and checking their efficiencies by making them responsible for their actions. In the organization, the manager has many responsibilities and work to do. Therefore, in order to reduce its burden, some responsibility and authority are delegated to the lowest level, that is, to subordinates, to complete the work on behalf of the manager.
Under delegation of authority, the manager does not fully hand over his authority, but only shares some of the responsibility with the subordinate and delegates that authority that is necessary to complete that responsibility.
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B)Features of Delegation of authority-
1. Delegating means giving authority to the subordinate to act independently, but within the limits set by the president In addition, you must comply with the provisions of the organization's policy, rules and regulations.
2. Delegation does not mean that the manager gives up his authority, but he certainly shares some authority with the primary subordinate to complete the responsibility entrusted to him.
3. The authority, once delegated, can be expanded or withdrawn by the president, as appropriate.
4. The manager cannot delegate the authority that he himself does not possess. Nor can he delegate his full authority to a subordinate.
5. The delegation of authority may be oral or written, or it may be specific or general.
6. A delegation is an art and must comply with all the fundamental rules of an organization.
C)The general rule is that an agent cannot delegate his authority to a third person without the approval of his manager. But in some cases, the nature of the work itself may require delegation of authority; In such a case the agent can legally employ agents.
A - Sub-agent "is a person who works for the original agent in the agency's activities and acts under his control.
There is a difference between the relationship of the manager or principal and the sub-agent in relation to others. The manager is responsible to others for the actions of the properly appointed sub-agent. However, the sub-agent is not responsible for his actions of the manager except in the event of fraud or intentional error.
The sub-agent is the agent for his actions and the agent in turn is to the manager for the actions of his sub-agent.
When a sub-agent is not properly assigned, the agent and not the primary agent are liable to others for the actions of the sub-agent. The agent is also responsible for the manager for the actions of the sub-agent.
(D) Substituted agent. - If an agent, who has an express or implicit authority to nominate another person to act with the manager in the agency's work, names another person accordingly, then that person is not a sub-agent but an agent out of this part of the agency's mandate entrusted to him. This agent is called a substitute agent.
Illustration
A instructs his lawyer B to sell his property by auction and hire a seller by auction; B- Names C- The auctioneer to make the sale. C is not a sub-agent, but an A to make a sale.
E)When choosing an alternate principal for the principal, the principal is obligated to exercise the same level of care as a man with regular prudence in his own condition; If he does so, he is not responsible to the manager for the actions or negligence of the chosen agent.
Illustration
(A) instructs Merchant (B) to purchase a ship for him. B employs a surveyor with a good reputation for choosing a ship for A. The surveyor makes a choice negligently and shows that the ship is not seaworthy and is Iost. B is not, but the surveyor is responsible to A.
F)Distinguish between a replacement or Substituted agent and a sub agent. -
The difference between the substituted or a replacement agent and a sub-agent is that in the case of the former there is a direct privacy of the contract between him and the principal, which does not exist between the principal and the sub-agent. When there is an assignment of duty for a person nominated by the school principal, that person is of course an alternative or substituted agent, not a sub-agent.
SUB-AGENT
A sub-agent is a person who works and works under the control of the original agent in the agency's business.
The sub-agent is not generally responsible for the manager but is accountable to the agent.
There is no privacy of the contract between the sub-agent and the manager.
SUBSTITUTED AGENT
The original agent can nominate the replacement agent to dispose of the manager for a specific part of the agency's work.
Once replaced, the replacement agent becomes immediately responsible for its manager.
The privacy of the contract is created between the manager and the replacement agent.
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