15-7 Delegation of Authority Extent to which managers allow subordinates to make decisions without approval of hign er management and exact obedience from others Reasons to Delegate or Reasons to Centralize Decentralize Authority Authority ● Encourages management iNcreases training costs development hEightens fear and resistance ● Leads to a more o Raises administrative competitive climate costs ● Enables managers t0 o Duplicates eforts and exercise more autonomy some functions Mcgraw-hillarwin Copyright @2002 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 15-7 Reasons to Delegate or Decentralize Authority ⚫Encourages management development ⚫Leads to a more competitive climate ⚫Enables managers to exercise more autonomy Delegation of Authority Extent to which managers allow subordinates to make decisions without approval of higher management and exact obedience from others Reasons to Centralize Authority ⚫Increases training costs ⚫Heightens fear and resistance ⚫Raises administrative costs ⚫Duplicates efforts and some functions