Delegation and accountability always starts at the management level and flows down into the organization. Employees with delegated authority must be named personally. This should be completely and verifiably documented.
Getting delegation right enables the organization to perform 80-90% of the daily business without escalation to supervisor successfully. 25% of employees usually have decision-making power. As a rule, 20% of this power is of financial nature and 80% of non-financial nature.
Not knowing who is actually authorized to make a decision caused an uncertain legal position and unnecessary costs: whether to act through time-consuming searches, duplicate or counterproductive work or a blockade at all.
The positive effects of legally compliant delegation to the company (safe harbor):
- Contribution to business success: focus and speed of strategy implementation
- Certainty to act law-compliant and the reduction the risk of liability
- Common corporate culture (one company), organizational efficiency and controlled decentralization of decision-making power
- Stability and a conscious decision structure in good and in turbulent times
- Standardization and cost reduction through standardized software and processes (procurement process)
- Effective and transparent transmission of entrepreneur obligations (OSH),
- Compliance with accreditation requirements (DakkS) for testing and standards-accountabilities
- Support of the ISO certification process and the quality management
- Strengthening of controlling, auditing and corporate governance through data integrity
The positive effects of legally compliant delegation to employees:
- Clarity and transparency of tasks, resources and decision-making power
- Empowerment of the right people and strengthening personal accountability
- Security for employees to operate within the agreed framework and increase motivation
- Job Enforcement: Decision obligation rest with the right people
- Simplifies employee turnover and employee reunification especially in re-organizations (M & A)