Chapter 4 » Difference between Delegation and Decentralization of Authority | Business Studies – XII




    Difference between delegation and decentralization of authority


    Bases

    Delegation of authority

    Decentralization of authority


    Nature

    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

       Purpose

    It minimizes the burden of managers of unit, departments or plant

    It prepares the organizational participants of the organization

       Relationship

    Relationship is between superior and immediate subordinates are indicated

    Relationship is between top level, management, departments and units

       Techniques

    It is technique of management used to get the things done through others

    It is both philosophy and technique of management

       Parties

    It is confined to manager and subordinates

    It involves all managers at all level and relates relationship between departments, sections and units.

        Responsibilities

    Authority is only delegated, not responsibilities

    Superior is relieved from responsibilities too

       Necessity

    Very important to management process

    It is optional and situational as per the need

       Control

     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    It can be withdrawn by delegator at any time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.