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Art of Delegation and Directives
Steps in the Process of Delegating A/R
by Michael C. Dennis M.B.A., C.B.F.

An appropriate and healthy working relationship between the credit manager and his or her subordinates will reduce the need to give orders to members of the credit department staff. Some people find it difficult to issue orders, especially when the task being assigned is unpleasant. Credit managers sometimes experience resistance when they issue directives.

When this happens, it is often the result of the fact that people are comfortable with routines and tend to resist change. The steps in the process of delegating are:

1. Planning
2. Preparing employees for change
3. Giving specific directives or orders
4. Verifying that employees understand the instructions they are given
5. Following up to make certain the orders are carried out
6. Creating consequences when employees fail to carry our directives

One note of caution: To some extent, the way the members of the credit department react to the credit manager's directives is a reflection of the way the credit manager reacts to the instructions or orders they receive. For example, to the extent that the credit manager questions or demonstrates reluctance to comply with the orders they receive, the members of the department staff are likely to duplicate this inappropriate behavior.

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