They affect the delegation in several ways. First, some subordinates have more capability to assume more responsibility. Since responsibility and authority go together, competent subordinates may get more authority. Second, the delegation of authority is formal and institutional but its exercise is personal.
Thus competent subordinate may assume and exercise more authority than others although working within the context of same set of delegation.
In the following situations, however, subordinates are expected to exercise less authority:
1. When they lack self-confidence;
2. When they lack resources;
3. When they have inadequate positive incentives;
4. When their superior is easily available for decision on their part; and
5. When they fear harsh criticism for unfavourable results.
Although personal factors affect the authority delegation to a very great extent, other organisational factors also affect the degree of authority delegation. Individual managers do not have control over these factors but have to work within the context of these factors.
Various organisational factors such as management philosophy, policy towards centralization or decentralization, etc., determine the delegation of authority at various levels of management. These factors severely affect delegation of authority.
Principles of Delegation:
Delegation of authority is a conscious effort on the part of manager. Therefore, in delegating authority, he should observe certain principles so as to make delegation effective. Unless these principles are observed, delegation may be ineffective, consequently organisation may fail and the managerial process may be seriously impeded.