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It can be withdrawn by delegator at any time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.