For effective delegation, the following principles are to be observed:

(a) Principle of delegation by result expected – The duties assigned during the course of delegation must be directed for the attainment of the organisational objective.

(b) Principle of functional definition – According to function of the enterprise similar activities are to be grouped together, because clear function, department and objectives are regarded as the essence of delegation.

(c) Authority should be co-extensive with responsibility — Co-equality of authority and responsibility is an import feature of delegation and as such, authority should commensurate with responsibility. Complete parity of authority and responsibility cannot be obtained.

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(d) Responsibility cannot be delegated – Though authority and responsibility should commensurate because of delegation, the absolute or ultimate responsibility cannot be delegated. So it has been told that accountability cannot be delegated.

(e) The principles of unity of command – The principle states that accountability to two bosses should be avoided and accountability should be unitary.

(f) Authority flows from upward to downward and responsibility flows from downward to upward.