Term for when work gets passed around instead of being executed

Solution 1:

I'd say, beating around the bush.

beat around the bush

: to speak evasively or misleadingly, or to stall or waste time. To flush pheasants and other birds so they could be shot, British gamekeepers hired beaters who would swing sticks at likely places where the birds might be lurking. Not to go directly to such foliage but to work around it instead gave the impression of wasting time or not trying very hard to raise the birds; hence, beating around the bush. Endangered Phrases by Steven D. Price Copyright © 2011 by Steven D. Price

Solution 2:

I'd use the term dilatory:

• intended to cause delay, gain time, or defer decision: a dilatory strategy.

(dictionary.reference.com)

Solution 3:

I think the idiom you are looking for is:

" Passing the buck "

Idioms.online - Pass the buck

Buck passing - Wikipedia

Solution 4:

You could consider using indecisive which means:

(Of a person) not able to make decisions quickly and effectively

Your co-worker in your example shows indecisiveness by asking others to decide what is already written in proper operating procedure or manual.

[Oxford Online Dictionary]