Delegation of authority is felt important because:
1. An individual’s energy and time is limited and hence, he cannot do more than his capacity to do. His work, therefore, is distributed among others to get the work accomplished effectively.
2. Certain activities are rather complex and need expertise for doing these. The services of staff specialists are, therefore, utilized by delegating some of the responsibility.
3. When business is not diversified but also scattered over a large area, new branches need be opened and these require delegation of authority to persons working there under the head office.
4. Delegation is a crucial step in management development, for it offers ample scope to the manager for self-expression and self-advancement through and taking decisions on many vital issues on his own account.
In short, delegation of authority is a must when the work costs too much in money and time for a manager. Generally, routine duties needing programmed decisions are delegated to subordinates.