Question

Distinguish between ‘Delegation’ and ‘Decentralisation’ of the basis of the following :

(i) Nature

(ii) Freedom of action

(iii) Status

Hint:

Delegation is compulsory, gives less freedom and is a process of sharing work. Decentralisation is optional, gives more freedom and results from a top management policy.

Answer 1

Step 1: Meaning of the two terms:
Delegation is the passing of authority by a superior to a subordinate to get a job done. Decentralisation is the planned spreading of authority to all levels of the organisation.
We compare them on the three bases given.

Step 2: (i) Nature:
Delegation is a compulsory act, because no manager can do all the work by himself.
Decentralisation is an optional policy decision. The top management may or may not adopt it.

Step 3: (ii) Freedom of action:
In delegation, the superior keeps more control over the subordinate. So the subordinate has less freedom to take his own decisions.
In decentralisation, there is less control by superiors over executives. So the executives have greater freedom of action.

Step 4: (iii) Status:
Delegation is a process followed to share the tasks among managers and their subordinates.
Decentralisation is the result of a policy decision of the top management. It is a part of the overall organisational design.

Final Answer:
Delegation is compulsory, gives less freedom and is a process of sharing tasks. Decentralisation is optional, gives more freedom and is the result of a policy decision.