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Principles of Delegation in Small Business

Delegation is the highest form of effective human activity. When small business owners start to delegate, they often encounter challenges and frustrations. This article will tell you how to avoid these problems and delegate effectively.

Delegation is the transfer of functions from the head to a subordinate, necessary to optimize work processes and achieve the organization’s goals. Delegation may be one-time or permanent. Delegating duties to a subordinate allows a manager to work more effectively: he does not need to calculate taxes – an accountant will do it. There is no need to conduct a job interview – it is an HR function. There is no need to develop a unique selling proposition – a marketing specialist can do it.

The purposes of delegation:

  • It is freeing up the manager’s resources for tasks where it is impossible to replace him.
  • Improving subordinates’ skills. Expanding the area of responsibility allows the employee to learn something new.
  • Psychological climate improvement. Employees better understand the motives of the head’s actions and treat their duties more carefully.
  • Personnel checking. Assigning specific tasks, the manager assesses how the subordinate copes with them. Such evaluation may help make managerial decisions.

What can you delegate?

The tasks manager has outgrown: simple and routine tasks. If you stay on the operational level for a long time, you can start to degrade. The owner’s time is worth more than the time of a hired employee, so there is no need to deprive yourself of the opportunity to earn more.

Preparatory processes:

  • Collecting information for a new project
  • Analysis of competitors
  • Forming a base for calls

Easy to teach tasks: to fill the online catalog store or enter bills of lading into the accounting database. It is enough to spend half an hour showing an employee how to do it, a couple of times supervising, and the process will go without interference from the manager. It would help if you delegated everything on which you can write a checklist or detailed instructions.

Regularly repetitive tasks: mailing list, publication of materials in social networks.

Highly specialized activities. The manager can take courses to create a site, but it is easier to hire a specialist: this will save time and money.

One-time tasks that do not require strategic influence – organizing training, corporate events, research.

What should not be delegated?

Key business issues. Each organization has its specifics: somewhere, it is the formation of purchases; somewhere, it is negotiations with clients; somewhere, it is the monitoring of financial indicators and trading. Freed from the routine, top Forex brokers in South Africa usually focus on these issues.

Strategic planning. No one but the business owner knows how his company should develop.

Risky projects. For example, it is determining the location of the opening of a new retail outlet.

Relationships with employees. The business owner should know that he pays much attention to his team. Motivation, awarding certificates, expressing gratitude for contributions to the work – the importance of these incentives is influenced by the manager’s status, so it will not be possible to delegate it. In a small company, the business owner decides who to hire and who to fire.

Status. If you plan a meeting at the top level of management or business owners, you can’t send an ordinary employee to it.

Principles of authority delegation:

  1. The norm of management should be limited

The optimal number of subordinates in one boss is 7-10 employees. If there are more, the manager may not be able to coordinate and control tasks.

  1. One supervisor

The task is delegated from a specific supervisor to whom the employee must report. If an employee reports to several chiefs, various problems can occur incorrect distribution of working time, conflicting instructions, and unclear areas of responsibility.

  1. Delegate to the lowest level

Any task that can be handled by someone other than the supervisor is delegated to subordinates. The supervisor should not micromanage issues that the team can manage without his involvement.

  1. Delegating authority to an employee does not remove responsibility from the supervisor
  1. Responsibilities = Authority

Delegating a specific task to a subordinate implies empowering him to handle it.

  1. Support

The manager should not refuse to support the subordinate, as his responsibility for proper performance also lies.

  1. The employee should inform the supervisor of deviations from the course

If something goes wrong, the employee must notify the supervisor to correct the line of conduct.

  1. The final result must be specific

When delegating authority, it is necessary to have a clear idea of the outcome of the task. The objective should be specific, measurable, and achievable.