Difference between Delegation and Decentralization
Basis |
Delegation |
Decentralization |
---|---|---|
Meaning | Delegation of authority means assigning work to subordinates and giving them authority to do it. | Decentralization refers to a systematic effort to delegate to the lowest levels all authority except which can be exercised at central points. |
Freedom of action | As control is in the hands of superior, less freedom is given to subordinates. | More freedom is given to subordinates to take decisions. |
Status | This process is done as a result of division of work. | This is the result of policy decision of top level. |
Scope | It has narrow scope as it is limited to the superior and his subordinate. | It has wide scope as it is extended to the lowest level of management. |
Aim | It aims to reduce workload of superior. | It aims to enhance the role of subordinates in the organisation. |
Nature | It is a necessary act because no individual can perform all tasks on his own. | It is an optional policy decision and is done at the discretion of top management. |
Responsibility | It is responsibility of every manager. | It is the responsibility of top level management. |
Authority | The maximum authority is retained at top level. | Authority is systematically distributed at every level. |
Decentralization is much more than delegation. In delegation, there is a transfer of authority from one individual to another. But in Decentralization, there is diffusion of authority throughout the organisation.
Difference between Delegation and Decentralization
Delegation and Decentralization are two terms which are mostly misunderstood as the same. Delegation of authority means assigning work to subordinates and giving them authority to do it. However, Decentralization means the dispersal of authority throughout the organisation.