Business Studies XII for Business Studies Notes

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Difference between Delegation and Decentralization of Authority

Difference between delegation and decentralization of authority

Delegation of authority
Decentralization of authority
Process of transferring authority and creation of responsibility between superior and subordinates is called delegation. It can take place without decentralization

Decentralization is delegation of and dispersion of authority. It is not possible without delegation of authority
It minimizes the burden of managers of unit, departments or plant

It prepares the organizational participants of the organization
Relationship is between superior and immediate subordinates are indicated

Relationship is between top level, management, departments and units
It is technique of management used to get the things done through others

It is both philosophy and technique of management
It is confined to manager and subordinates
It involves all managers at all level and relates relationship between departments, sections and units.
Authority is only delegated, not responsibilities

Superior is relieved from responsibilities too
Very important to management process
It is optional and situational as per the need
 Control remains in hand of superior who supervise the activities of subordinates

Control is delegated and decentralized to the departmental managers
   Withdrawal       of authority
It can be withdrawn by delegator at any time
Withdrawal of authority is not simple.

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