Myth and Reality of the Delegation of Authority
Recent research reports have shown that empowerment and the delegation of authority (DOA) have not produced the kind of results that were expected in some cases. Other studies have explored the relation between DOA and moderator variables. The present study attempted to examine how relational empowerment i.e. the delegation of authority works more effectively. Empirical data for this study was based on a unique questionnaire survey of small and medium-sized firms regarding their organization and management practices. Statistical analysis was conducted on how DOA as an independent variable would influence dependent variables such as “the will to challenge” and financial performance (the return on assets). Moderator variables such as control activities, belief systems and new venture support activities were also taken under consideration. Results showed that DOA had a partial influence on the employees “will to challenge”. Also, some moderator variables were seen as having statistically significant effects on the relation between delegation of authority and dependent variables. Further empirical studies on delegation of authority are needed to better understand the complementary relations among moderator variables.