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© 2007 Thomson/South-Western© 2007 Thomson/South-Western All rights reserved. All rights reserved.

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

Part 2

Planning and Organizing

Mosley Mosley • Pietri• Pietri

Chapter 5

Delegating

Authority and

Empowering

Employees

Chapter 5

Delegating

Authority and

Empowering

Employees

© 2007 Thomson/South-Western. All rights reserved. 5–2

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

1.1. Recognize the importance of delegation.Recognize the importance of delegation.

2.2. Explain what is involved in the delegation process, Explain what is involved in the delegation process, including authority, responsibility, and accountability.including authority, responsibility, and accountability.

3.3. Understand the role of authority.Understand the role of authority.

4.4. Understand the role of power and why it is a great Understand the role of power and why it is a great motivator.motivator.

5.5. Indicate ways to increase empowerment.Indicate ways to increase empowerment.

6.6. Recognize the benefits of delegation.Recognize the benefits of delegation.

After reading and studying this chapter, you should After reading and studying this chapter, you should be able to:be able to:


Learning Objectives (cont’d)Learning Objectives (cont’d)Learning Objectives (cont’d)Learning Objectives (cont’d)

7.7. Understand why leaders fail to delegate and why Understand why leaders fail to delegate and why employees may not welcome delegation.employees may not welcome delegation.

8.8. How to face adaptive changes.How to face adaptive changes.

9.9. Indicate ways to achieve effective delegation and Indicate ways to achieve effective delegation and discuss the roles of various parties in achieving discuss the roles of various parties in achieving effective delegation.effective delegation.

After reading and studying this chapter, you should After reading and studying this chapter, you should be able to:be able to:


The Role of DelegationThe Role of Delegation

• Key Aspects of DelegationKey Aspects of Delegation

Granting authorityGranting authority—the power or right to act in a —the power or right to act in a specified manner in order to reach organizational specified manner in order to reach organizational objectives.objectives.

Assigning duties and responsibilitiesAssigning duties and responsibilities—specifying key —specifying key tasks associated with a particular job.tasks associated with a particular job.

Requiring accountabilityRequiring accountability—the obligation that is —the obligation that is created when an employee accepts the leader’s created when an employee accepts the leader’s delegation of authority.delegation of authority.


The Role of AuthorityThe Role of Authority

• AuthorityAuthority The right granted by the organization to do something The right granted by the organization to do something

or to tell someone else to do it, in order to reach or to tell someone else to do it, in order to reach organizational objectives.organizational objectives.

• Views on the Sources of AuthorityViews on the Sources of Authority Formal Authority ViewFormal Authority View

A manager’s authority is conferred; authority exists because A manager’s authority is conferred; authority exists because it was granted by the organization.it was granted by the organization.

Acceptance of Authority ViewAcceptance of Authority View A manager’s authority originates only when it has been A manager’s authority originates only when it has been

accepted by the group or individual over whom it is being accepted by the group or individual over whom it is being exercised.exercised.


The Role of PowerThe Role of Power

• PowerPower The ability to influence individuals, groups, events, The ability to influence individuals, groups, events,

and decisions and is closely related to leadership.and decisions and is closely related to leadership.

• Types of PowerTypes of Power Reward powerReward power Coercive powerCoercive power Legitimate powerLegitimate power Control-of-information powerControl-of-information power Referent powerReferent power Expert powerExpert power


EXHIBIT 5.1 Authority-Power Combinations


The Role of EmpowermentThe Role of Empowerment

• EmpowermentEmpowerment Is the granting of authority to employees to make key Is the granting of authority to employees to make key

decisions within their enlarged areas of responsibility.decisions within their enlarged areas of responsibility.

Embraces the idea that individuals closest to the work Embraces the idea that individuals closest to the work and to customers should make the decisions.and to customers should make the decisions.


EXHIBIT 5.2 Action Plan of James McKenney, Vice President of Lending

Source: This example is based on the experiences of Don Mosley, Sr., when he served as coordinator and instructor for the management and leadership segment of the Banking School of the South at Louisiana State University. The name is fictional to ensure no embarrassment to the actual banker.

I. Statement of my objective

To greatly improve my efficiency and effectiveness in carrying out the delegation process with the leading officers reporting to me.

II. Analysis of the problem or objective

A. At the banking school when we discussed the 16 problem styles (Myers-Briggs profiles and analysis), I discovered that the characteristics of my type can lead to being a very effective leader if a few potential blind spots can be overcome. It seems that those who are sensing/thinking types (as I am) are so conscientious that our attitude is “If you want it done right, do it yourself.” This statement definitely applies to me.

B. When I was recently promoted to this position, the president of the bank gave me a number of positive reasons for my promotion. He also cautioned me that with my increased responsibilities, I could expect to get involved in activities as previously, but he wanted me to focus on developing the skills and knowledge of our loan officers and improve bottom line results.

C. I realize that most of my life I earned good grades in high school and college because of individual effort. This carried over to my work habits as a loan officer, but I now realize that to be a successful supervisor, I need to develop my team and make use of coaching and empowerment.

III. Development of alternative solutions

A. Start having biweekly meetings for one hour after banking hours.

1. At our first meeting we will jointly develop objectives that enhance and reinforce the bank’s financial goal.

2. At our subsequent meetings we will review our progress and discuss any problem loans.

B. Set up a participative individual management-by-objectives program. This plan will allow individual bank officers to set performance objectives that support our lending division’s objectives. During this process I will play the role of coach and mentor, and after the initial meeting, set up performance review sessions with each officer every six months or as needed.

C. Once every six months at our biweekly meeting we will conduct a brainstorming session to identify our strengths and any problems, issues, or missed opportunities we need to address.

D. I will explore educational opportunities available for our officers including scheduling several officers for our state banking school or the Banking School of the South.

IV. Final action plan

I have begun implementing all of the alternative ideas (A, B, C, and D in Section III). Prior to sending this to you, I met and discussed the ideas with our president and CEO. He was most enthusiastic and supportive and is presenting the concept to our executive committee for possible implementation in all divisions of our bank.


Why Leaders Fail to DelegateWhy Leaders Fail to Delegate

• Do not want to surrender power and authority to Do not want to surrender power and authority to subordinates.subordinates.

• Lack of trust in subordinates.Lack of trust in subordinates.

• Fear employees will make mistakes for which Fear employees will make mistakes for which they will be held accountable.they will be held accountable.

• Are insecure and are afraid that employees will Are insecure and are afraid that employees will do well and be promoted ahead of them.do well and be promoted ahead of them.

• Recognize that subordinates need more training, Recognize that subordinates need more training, coaching, and experience.coaching, and experience.


It Is Time to Delegate When You:It Is Time to Delegate When You:

• Are doing work that an employee could do just as well.Are doing work that an employee could do just as well.

• Begin thinking you are the only one who actually knows Begin thinking you are the only one who actually knows how the job should be done.how the job should be done.

• Leave the job each day loaded down with details to take Leave the job each day loaded down with details to take care of at home.care of at home.

• Stay frequently after hours catching up on work.Stay frequently after hours catching up on work.

• Never get through with your work.Never get through with your work.

• Realize you are a perfectionist.Realize you are a perfectionist.

• Tell employees how to solve problems.Tell employees how to solve problems.


Why Employees May Not Welcome Why Employees May Not Welcome DelegationDelegation• They do not want to assume ambiguous or They do not want to assume ambiguous or

unclear duties and responsibilities.unclear duties and responsibilities.• They are afraid of failure.They are afraid of failure.• They want to avoid increased job stress.They want to avoid increased job stress.


EXHIBIT 5.3 The Experiential Learning Model

Experience = DoThe individual or team does something that results in success or a mistake.

Identify = LookThe individual or team, perhaps with the assistance of a coach or facilitator, identifies what happened.

Analyze = ThinkTogether they analyze what factors were involved in causing the success or failure.

Generalize = GrowA conclusion is drawn and an attempt to discover principles that will help in future situations.


Achieving Effective Delegation and Achieving Effective Delegation and EmpowermentEmpowerment

Individual IntrospectionIndividual Introspectionand Developmentand Development

Individual IntrospectionIndividual Introspectionand Developmentand Development

Coaching and MentoringCoaching and MentoringCoaching and MentoringCoaching and Mentoring Reframing and TrainingReframing and TrainingReframing and TrainingReframing and Training

Delegation and Delegation and EmpowermentEmpowerment

Delegation and Delegation and EmpowermentEmpowerment


Benefits of DelegationBenefits of Delegation

EnhancedEnhancedPowerPower

EnhancedEnhancedPowerPower

Employee Employee DevelopmentDevelopment

Employee Employee DevelopmentDevelopment

ImprovedImprovedControlControl

ImprovedImprovedControlControl

Improved Time Improved Time ManagementManagement

Improved Time Improved Time ManagementManagement

Benefits of Benefits of DelegationDelegation

Benefits of Benefits of DelegationDelegation


Seven Habits of Unsuccessful Seven Habits of Unsuccessful ExecutivesExecutives1.1. They see themselves and companies as dominating their They see themselves and companies as dominating their

environment.environment.

2.2. They identify so completely with the company that there is no They identify so completely with the company that there is no clear boundary between their personal interests and the clear boundary between their personal interests and the corporation’s interests.corporation’s interests.

3.3. They think they have all the answers.They think they have all the answers.

4.4. They ruthlessly eliminate anyone who isn’t 100 percent They ruthlessly eliminate anyone who isn’t 100 percent behind them.behind them.

5.5. They are consummate spokespersons obsessed with the They are consummate spokespersons obsessed with the company image.company image.

6.6. They underestimate obstacles.They underestimate obstacles.

7.7. They stubbornly rely on what worked for them in the past.They stubbornly rely on what worked for them in the past.


Important TermsImportant TermsImportant TermsImportant Terms

• accountabilityaccountability• authority coachingauthority coaching• delegation of authoritydelegation of authority• empowermentempowerment• experiential learningexperiential learning• job descriptionsjob descriptions• parity principleparity principle• Peter principlePeter principle• powerpower• reframingreframing


Case 5-2 The Autocratic Manager

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Business