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You have already mentioned the delegation methods correctly and oracle normally follows these 2 known approach i.e. Vacation and Worklist notification rules.
These 2 methods are not enough to handle the delegation part of your business??
these are the two ways in oracle which is mostly used, which you have mentioned in your question.
if they are not working then let me know i'll tell you the way how to do this.
Thanks both of you. Just wanted to make sure these are the only two ways :)