Issue 4, 2020

Shageev D. A. Analytic hierarchy process based method for delegating authority and responsibility in an organization.

There are only a few scientific sources in domestic and foreign citation databases where the methodical aspects on the topic of delegation of authority and responsibility in the organization at the average and higher levels have been elaborated. Today there is a need for further development of the delegation methods in economic and management science. The decisions made on delegation should have practical applicability, efficiency, possibility of integration with information technologies and mathematical methods, availability of a clear algorithm, the ability to confirm or disprove the need for delegation by a set of different methods, the ability to assess the effect (effectiveness) of decisions. A methodology for delegating authority and responsibility in an organization based on the hierarchy analysis method that meets these requirements is proposed. The paper presents the results of the methodology approbation in a large commercial networks of one of the Russian megacity. Two problem situations of the network which required effective management decisions through the delegation of authority and responsibility were studied with the help of the developed logical algorithm. The analytic hierarchy process based method was used to implement delegation process by means of the Mpriority computer program. The results of delegation led to positive changes in performance indicators. The first situation showed a significant reduction in the indicators of delayed orders and complaints, conflicts with customers, expressed in monetary terms. The second situation showed the increase in the customer base and profit growth. After solving both problems, the users of the method confirmed its relevance. Keywords: delegation, management functions, analytic hierarchy process, working time photography, organization.

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