Step 1: Understand the concept:
The sentence defines a term as the entrustment of responsibility and authority to another person and the creation of accountability for performance.
Three ideas are present: giving responsibility, giving authority, and making the person answerable. These are the three elements of delegation.
Step 2: Why option (1) Delegation is correct:
Delegation means a manager hands over a part of his work, along with the needed authority, to a subordinate. The subordinate becomes accountable for the result.
Every part of the given statement matches this meaning. So the blank is filled by Delegation.
Step 3: Why option (2) Decentralisation is wrong:
Decentralisation is a policy of spreading decision making power systematically at all levels of the organisation. It is not about one person passing work to another.
Step 4: Why option (3) Organising is wrong:
Organising is the whole function of identifying work, grouping it into departments, assigning duties and setting relationships. It is a wider function, and delegation is only one part of it.
Step 5: Why option (4) Formal Organisation is wrong:
A formal organisation is the structure of authority relationships created by management. It is a type of organisation, not the act of handing over responsibility.
Final Answer:
The blank is Delegation, which is option (1).