Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What does the term 'delegation' refer to in a management context?

1. The transfer of responsibility and accountability

2. The transfer of authority only

3. The process of managing a team

4. The act of training new employees

The correct answer is: The transfer of authority only

In a management context, the term 'delegation' primarily refers to the process of transferring responsibility and accountability along with the necessary authority to complete a task or make decisions. This means that when delegation occurs, a manager assigns certain duties to subordinates while ensuring they have the appropriate level of authority to execute those responsibilities effectively. Delegation is crucial for empowering employees, fostering trust, and promoting a more efficient workflow within an organization. It allows managers to focus on higher-level tasks while developing the skills of their team members. While one might consider the transfer of authority in isolation as a key component of delegation, it is inadequate to fully define delegation without recognizing that it also includes taking responsibility for the outcomes of the delegated tasks. Therefore, only discussing the transfer of authority omits the critical aspect of overall accountability associated with delegation.