CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND STUDY
One of the aims of setting up a business organization is to gain competitive advantage and to make profit. Without the employees discharging their assigned responsibilities, the objectives of the organizations may not be achieved easily and timely. Thus, employee performance is a crucial determinant of organizational goals. According to Al-Jammal, Al- Khasawpeh & Hamadat (2015), employees who are engaged in their work and committed to their organizations give the organisations crucial competitive advantages including higher productivity and lower employee turnover. Thus, it is not surprising that most of today’sorganizations find ways to make the employee to be committed by delegating some managerial authority to them.Due to the competitive nature of business activities which could be traced to globalization, the task of carrying the burden of the business activities cannot be done by the business owner(s) or managers alone. Therefore, there is need for some responsibilities to be shifted or assigned to the employees which will reduced the workload and pressure of the business owner(s) or managers
Delegation of authority is one of modern trends practiced by managers. It is function stands out contributing and increasing the level of motivation of employees and achieving positive returns for (an organization with a manager) and (an employee with a customer) both. On the level of an organization, it achieves competitive advantage, knowledge inventory, increases the level of productivity and speed in finalizing tasks effectively. On the level of manager, it alleviates functional burdens, gains employees’ satisfaction and builds cooperation and trust between manger and employees giving a chance for manger to have full-time for realization more important work. So, it reduces physical and intellectual efforts exerted by manager and other employees. On the level of an employee, it works on achieving functional empowerment, constructing alternative and administrative leadership, making employees feel self-confidence and motivation for Excellency in performance. On the level of customer, it meets the needs of customers rapidly, delivering or providing the service will not be delayed due to delegation authority. Giving the customer a higher level of care and attention, building customer’s perceived and creating loyalty and mutual respect for an organization and production in which the organization produced.
According to Al-Jammal et al.(2015) delegation of authority has impact on an organization, on the manager and on the employees. They opined the impact of delegation of authority on organization helps in achieving competitive advantage, increase in production as well as effectiveness in task completion. In the same vein, they stated that delegation of authority has lessen the functional burdens of the manager and it has built cooperation and trust between the manager and the employees which led to employees satisfaction. Thus, it reduces physical and intellectual efforts exerted by manager and other employees;on the level of an employee, they stated that delegation of authority works on achieving functional empowerment, constructing alternative and administrative leadership, making employees feel self-confidence and motivation for excellence in performance; andon the level of customer, delegation of authority meets the needs of customers rapidly, delivering or providing the service will not be delayed due to delegation authority. Past studies such as Al- Jammal et al, (2015), Kombo. Obonyo, & Oloko (2014) Kiiza & Picho (2014) etc have demonstrated that application of delegation of authority will help employee effectiveness to be enhanced, managers will be able to maintain their job position and preserve the process of facilitating business affairs, employees’ loyalty, and achieving performance efficiency .And it serves as a way to help manager in alleviating the burden of running the affairs of the business. Yukl and Ping Fu (1999) established that greater delegation will result to the following factors: Competence of the employee, sharing of managers’ task objectives by the employee, longstanding and positive relationship of the manager with the employee, and the status of the lower-level persons. Managers who choose to do everything hamper their own productivity; limit their employee performance and any contribution they do make as managers is often accompanied by frustration and excessive personal effort (Koontz et al, 1983).Thus, it is important to incorporate delegation of authority to managerial functions or practices to increase employee performance towards achieving organizational goals.
1.2 STATEMENT OF THE PROBLEM
Delegation of authority involves a manger given one his employees a task to carry out and the corresponding authority. One of the major challenges of delegation of authority is the abuse of power by the employees. Some employees let the short term authority given to them to get into their head and they end up misbehaving.
The choice of employee to delegate duty and authority to is one the problems faced by a manger when it comes to point of delegation of authority. It is impossible for a manager to carry out all the tasks but the fear of delegating duties to an incompetent person is one of challenges. It stands out reality of phenomenon of delay in delivery of services to citizens, reviewers and routines from perspective of researchers based on thoughts of customers in order to obtain variety services, functional job methods and technical tasks done by employees of Nestle PLC which leads the capacity to absorb a long time with customers and reviewers to obtain the required services. So this study is focused to examine delegation of authority as a strategic tool for management efficiency.
1.3 OBJECTIVES OF THE STUDY
The general objective of this study is to examine delegation of authority as a strategic tool for management efficiency, a case study Nestle PLC. The specific objectives are:
1. To find out if delegation of authority influences the performance of employees.
2. To ascertain if delegation of authority improves employees’ competency.
3. To examine if delegation of authority helps to save time in carrying out a task.
4. To know if delegation of authority influence a positive relationship between the manager and employee.
5. To find out if delegation of authority helps to meet the need of customers rapidly.
1.4 RESEARCH QUESTIONS
The relevant research questions related to this study are:
1. Does delegation of authority influences the performance of employees?
2. Does delegation of authority improves employees’ competency?
3. Does delegation of authority helps to save time in carrying out a task?
4. Does delegation of authority influences a positive relationship between the manager and employee?
5. Does delegation of authority helps to meet the need of customers rapidly?
1.5 SIGNIFICANCE OF THE STUDY
The findings from this study helps to discover the level of centralism and decentralism applied in management of Nestle PLC affairs in which a lot of work and different services are implemented for local community and citizens due to increasing the level of service, performance and speed. This matter is going to achieve a higher level of satisfaction and loyalty to customers.
Delegation authority reflects positive returns achieving efficiency, effectiveness and empowerment. In addition creating alternative leadership, trust, cooperation between functional high and medium levels or between employer and employees.
The finding from this research can also be used as a reference material for other researchers who will likely carry out a study on a related topic.
1.6 SCOPE OF THE STUDY
The scope of this study is restricted to a study of delegation of authority as a strategic tool for management efficiency using Nestle PLC as a case study.
1.7 LIMITATION OF THE STUDY
Some of the major constraints the researchers encountered in putting up this research include lack of time, lack of willingness to give information by respondent and also limited resources.
1.8 DEFINITION OF TERMS
Authority: The degree of discretion in organization positions conferring the persons occupying these positions, the right to use their discretion and judgment on decision making
Subordinate: A lower staff that is answerable to a boss or superior.
Manager: This is regulating the operation of a business organization one who undertakes the task of planning and at any level.
Delegation: This is the organization processes that permit the transfer of authority from superior to a subordinate.
Task: This implies to piece of work assigned to someone to do.
Responsibility: Is the obligation to carry out certain activities with accountability for performance.
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