What should executives be particularly cautious about when delegating authority?

When delegating authority, executives should be particularly cautious about the making of errors by employees because, despite the delegation, the final responsibility for outcomes remains with the executives. When authority is delegated, it empowers employees to make decisions and take actions that can have significant impacts on the organization. If an employee makes mistakes, these errors can lead to negative consequences, such as operational inefficiencies, financial losses, or damage to the company’s reputation.

Executives need to ensure that proper training, guidance, and oversight are in place to minimize the risk of errors. They also should create an environment where employees feel comfortable seeking clarification or assistance when needed. This balance allows for effective delegation while maintaining accountability and control over the unit's performance and decisions.

Delegating authority does not absolve executives of their responsibilities; they must remain informed and ready to step in if necessary to ensure the unit operates effectively and achieves its goals.