Superiors are accountable for the acts done by subordinates. Department heads are accountable for the acts of the concerned department.
Managers delegate some of their function and authority to their subordinates. Right to take decisions is shared by top management and other level of management. Scope Scope of delegation is limited as superior delegates the powers to the subordinates on individual bases. Scope is wide as the Delegation and decentralization making is shared by the subordinates also.
Responsibility Responsibility remains of the managers and cannot be delegated Responsibility is also delegated to subordinates.
Freedom of Work Freedom 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.
Nature It is a routine function It is an important decision of an enterprise. Need on purpose Delegation 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 Authority The 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 Responsibility Authority with responsibility is delegated to subordinates. Degree Degree of delegation varies from concern to concern and department to department.
Decentralization is total by nature. It spreads throughout the organization i. Essentiality Delegation is essential of all kinds of concerns Decentralization is a decisions function by nature. Significance Delegation is essential for creating the organization Decentralization is an optional policy at the discretion of top management.
Withdrawal Delegated authority can be taken back.
It is considered as a general policy of top management and is applicable to all departments. Freedom of Action Very little freedom to the subordinates Considerable freedom Decentralization can be called as extension of delegation.
When delegation of authority is done to the fullest possible extent, it gives use to decentralization.On the other hand, Decentralization refers to the dissemination of powers by the top management to the middle or low-level management.
It is the delegation of authority, at all the levels of management. To determine whether an organization is centralized or decentralized greatly depends on the location of decision-making authority and the degree of decision-making power at lower levels.
Sep 06, · Subject:Management Paper: Principles and Practices of Management. On the other hand, Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. In a decentralization concern, authority in retained by the top management for taking major decisions and framing policies concerning the whole concern.
In delegation, a superior delegates or transfers some rights and duties to a subordinate but his responsibility in respect of that work does not end. Delegation is process while decentralisation is the end result of a deliberate policy of making delegation of authority to the lowest levels in.
Decentralization The tendency to disperse decision making authority in an organized structure. It is the fundamental aspect of delegation to the extent that the authority to be delegated is decentralized. According to Koontz and O’Donnell- decentralization is the systematic effort to delegate to the lowest levels all authority except that.
The line of difference between Delegation and Decentralization is very thin and blurred. The first distinguishing aspect of the two is In delegation only authority and responsibility are transferred but not the accountability.
However, in decentralization, all the three are transferred.