Tuesday, June 12, 2012

Delegation Vs Decentralization

BasisDelegationDecentralization
MeaningManagers delegate some of their function and authority to their subordinates.Right to take decisions is shared by top management and other level of management.
ScopeScope of delegation is limited as superior delegates the powers to the subordinates on individual bases.Scope is wide as the decision making is shared by the subordinates also.
ResponsibilityResponsibility remains of the managers and cannot be delegatedResponsibility is also delegated to subordinates.
Freedom of WorkFreedom is not given to the subordinates as they have to work as per the instructions of their superiors.Freedom to work can be maintained by subordinates as they are free to take decision and to implement it.
NatureIt is a routine functionIt is an important decision of an enterprise.
Need on purposeDelegation is important in all concerns whether big or small. No enterprises can work without delegation.Decentralization becomes more important in large concerns and it depends upon the decision made by the enterprise, it is not compulsory.
Grant of AuthorityThe authority is granted by one individual to another.It is a systematic act which takes place at all levels and at all functions in a concern.
Grant of ResponsibilityResponsibility cannot be delegatedAuthority with responsibility is delegated to subordinates.
DegreeDegree of delegation varies from concern to concern and department to department.Decentralization is total by nature. It spreads throughout the organization i.e. at all levels and all functions
ProcessDelegation is a process which explains superior subordinates relationshipIt is an outcome which explains relationship between top management and all other departments.
EssentialityDelegation is essential of all kinds of concernsDecentralization is a decisions function by nature.
SignificanceDelegation is essential for creating the organizationDecentralization is an optional policy at the discretion of top management.
WithdrawalDelegated authority can be taken back.It is considered as a general policy of top management and is applicable to all departments.
Freedom of ActionVery little freedom to the subordinatesConsiderable freedom

1 comment:

  1. It is well-stated and neatly done in a tabulated format. It clearly shows the distinction between delegation and decentralization in several aspects.

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