Impact of Delegation on Decision Making in Private Sector Organizations (a Study of Zenith Bank Nig Plc Enugu)
This project examines the impact of delegation on decision making in private sector organization (a study of Zenith Bank Nig. Plc Enugu). The researcher obtained her data from two major sources, primary and secondary data. The primary data was collected though questionnaire from the top level management of Zenith Bank. While secondary data was collected from the library and textbooks. The data collected were analyzed in table of frequencies. The research design involved was the survey research, use of questionnaire and oral interview. Some of the findings indicate that workers participation in decision making enhance productivity. Production of process can be faster effective in Zenith Bank. The population of the study was 51 persons from which 45 persons were determined as sample size using the Yamani Yaro statistical formular. Based on the findings, the impact of delegation on decision making where appropriate, the bank saw delegation of authority as imperative in decision making.
1.1 BACKGROUND OF THE STUDY
The concept of delegation as it obtains in industries, service and business organizations has attracted many psychologists and educationists . these great people have carried out services of research on it with each of them coming up with a theory as it affects decision making in private sector organisations yet no none of the theory of delegation can alone satisfactory explain the concepts. This is because of the complexity in human behavior.
Delegation means entrusting to, deputation or representing. To delegate authority, a manager entrusts his or her authority to others to perform. Lawrence and Losh (1969) noted the importance of giving managers at all levels the authority to make decisions over their domain.
Delegation is an important tool of management . an organization is an organized group of people with a particular purpose, such as business or made up of group of person who put their resources together to achieve a particular objective Chandler (1962). Benard (1968) proposed one of the first modern theories of organsiation by defining organization as a system of consciously coordinated activities. Organizational success was linked to the ability of a leader to create a cohesive environment. He proposed that a managers authority is derived from subordinates acceptance instead of the hierarchical power structure of the organization.
Private sector organizations are companies, corporations or businesses that are owned by private citizens or groups instead of the government or state. The private sector is made up of every for-profit business that is not owned or operated in any form by the government. The purpose of decision as earlier stated is to direct human behavior towards a future goal. Decision making is the selection form among alternative course of action and if there were no alternatives, there should be no need for a decision. In making any plan, there must be a decision to take, therefore, it can be said that planning leads to decisions guided by organization policy and objectives.
1.2 STATEMENT OF THE PROBLEM
The impact of delegation on decision making in private sector organizations is the avenue in knowing how effective and efficient delegation of authority will enhance the smooth running of banking operation in Zenith Bank Plc Enugu. Among all the states adopted in the over all interest of staff and management of Zenith Bank, delegation of authority is mostly effective as far as banking operation is concern.
Presently, the aim of having that option is defeated. Delegation of authority is not followed the way it should be, people who are supposed to be delegated authority have not been given the opportunity for that purpose. It is pertinent to note that delegation of authority which has procedure is now turned upside down. The manager instead of delegating authority to his next in command. In view of this ugly scenario, the researcher tries to find out why delegation of authority is not followed endue process or procedure of doing that and also find o whether delegation of authority is effective and efficient in Zenith Bank.
1.3 OBJECTIVE OF THE STUDY
The major purpose of this work is to identify and provide solutions to delegation problems as they affect organization planning in decision making. A lot research has been done in the area of delegation on private sector organizations. Attempt will also be made to identify some of the findings of this research under Nigeria environment before assigning to them task to perform. They (managers) must not only delegate routing matters but also task requiring the use of initiatives.
Objectives of this study therefore include the following:
- To find out that delegation of authority could be effectively implemented.
- To ascertain whether organizational decision could be effective without workers participation.
- To show that delegation of authority is important in orgnisations.
- To show how effective and efficient delegation of authority will enhance the smooth running of banking operations in Zenith Bank Plc Enugu.
- To find out why delegation of authority is not followed in due process or procedure.
1.4 RESEARCH QUESTIONS
The following is the research question for this project work:
- How can delegation of authority be effectively implemented.
- Is decision making effective in private sector organizations without participation.
- How can delegation of authority be followed in due procedure.
- Why is delegation of authority important in organisations.
- Is management decision effective without participation.
1.5 SIGNIFICANCE OF THE STUDY
The knowledge that will be derived from this study need not to be over emphasized as it is immensely of high importance towards the realizing of the objectives of the organization under study. Again, the study may be of some help to students, personnel, managers and their staff or enlightenment in delegation of authority.
1.6 SCOPE OF THE STUDY
This research work is basically concerned with the examination of independent variable affecting delegation of authority as it concerns decision making. It covers the aspect to responsibility to carry out activities, planning and ways through which workers could gain more power and improve their position relative to management.
The non-behavioural variable such as change in technology, political and climatic factors are not considered the study.
1.7 LIMITATIONS OF THE STUDY
This study is however, subjected to some limitations which could make it not to be exhaustive. Such limitation includes the researcher’s inability to interview some principal staff of the organization whose contribution could have been of great help. It is also limited to time and material resources.
1.8 DEFINITION OF TERMS
It is necessary to define accurately some of the unfamiliar terms and terminologies used inthis study. This is necessary because the meaning of words is not in the words but in the use. The various concepts used are defined as follows:
Delegation: This is the organization process that permits the transfer of authority form superior to subordinate.
Subordinate: A lower staff who is answerable to a boss or superior.
Manager: This is regulating the operation of a business organization. One who undertakes the task of planning at any level.
Task: This means work or function assigned to someone in the organization to execute.
Responsibility: this is the obligation to implement some certain activities with accountability for performance. At this juncture, this function must be done by this person, he has no choice.
Authority: The degree of discretion in organization positions conferring the person occupying these positions, the right to use their discretion and judgment on decision making.
Initiative: Right to think out and execution of a plan.
Duty: What someone is obligated in terms of contract agreement.