Feb 15, 2016

Delegation of Authorities - A Perfect Corporate Culture

Some times we stuck in our office with some functional crunches. despite proper resources, we couldn't get the desired result in task-based assignments. This happened when we don't delegate authorities. I have seen in many companies where the owner of the company is engaged in all functional areas, though we hired respective domain experts and paying them handsome salaries and perks, trust stay with the owner, I must say trust stay at the corner.
Generally, a company engaged in retail business has proper functioning departments. Depending upon the size of the organization department either is headed by VP level or GM level. a typical organizational hierarchy. in the current scenario, A GM level experienced professional draw 15 to 20 lakh annual package and VP level may go up to 50 lakh.

An average monthly salary comes to a handsome sum. Now, a question comes in mind about why we have a functional hierarchy in our organization if all decision level power stays with the owner. This is not a rare problem I am pointing at but is on a large side. most of the Indian business houses follow it well. When someone asked me to join their company as a management consultant, I directly jump to this area and tried to know that how much interference the company owner has in companies' routine inter-departmental functionalities. I suggest them in my way.

A simple management lesson we had studied in our school or college time that the Delegation of authorities is given to HODs so that they can run their department independently and responsively and can be held responsible for not performing well.
Here are a few tips for my few followers :

1. Hire an experienced professional through your expert HR mechanism.

2. Assign KRA and KPI. based on the KPI delegate full authorities. Of course, there should be checks and control at your end so he or she doesn't misuse authorities.

3. Design department wise MIS format but the format should be simple and should address the KPI factors and measurements. Let them work as per the nature of their Job and do not force a short period review. The review should be done every month or quarterly. especially for departments like Production, Procurement, F&A should be done monthly and for marketing and sales, it should be quarterly. results of any spending by marketing dept will come in a little bit longer period so sales monthly review will not give the desired result in the Retail segment.

4. I appreciate each performer in review meetings. Few of HODs may not perform well, it does not mean that they will not perform in the next review so do not discourage them. Try to find out reasons n give them your moral support.

5. Professionals from an accounting background like CA remain calm and cool. here you need to be humble to them. They need a smooth environment so then only they can think to manage your accounts and finance efficiently.

6. Make a friendly relationship with your team and help them when they need it. Emotions create a big role in personal bounding.

7. If you appoint someone in your company, it becomes your moral responsibility to retain and develop them to your level. reshuffling is the best way to make every employee all-rounder.

8. Develop the skill, it is very economical compare to hiring a skill.

9. Human resources should have prime roll develop Human first.above is just a simple line for new startup company owners. Since many of them follow my simple sayings so hope you will measure these little things and try to adapt in routine life.

Startup culture is different means there people are counted machines so sometimes they are emotionless but for the long run and sustainable growth of organization need a culture carrying " People's First" approach.

In this topic as a writer I tried to capture few main points which is required to consider for proper delegation of authority, however if we go academic way lots of books are written by renowned writers.

Bs Rana 

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