Following the chain of command? How managers balance benefits and risks in granting autonomy to employees

We investigate how managers trade off the benefits of delegating authority to their employees with risk loss control. Organizational economics theory identifies specific knowledge subordinates and monitoring possibilities for manager as determinants delegation. Social learning predicts that when unit are themselves granted more authority, they will pass this on employees. This cascading reduces fear control associated Using a survey among 215 in professional services firms, we find delegate those have knowledge, there exceptions employee tasks, costs lower. also support effect: decentralization is positively related autonomy employees, while it moderates effects costs.