Step 1: Know the two terms:
Both delegation and decentralisation deal with passing authority down, but they are not the same thing. We compare them on meaning, scope and purpose.
Step 2: (i) Meaning:
Delegation: it refers to the downward transfer of authority from a superior to a subordinate.
Decentralisation: it refers to delegation of authority throughout all the levels of the organisation, so that decision making power lies nearest to the points of action.
Step 3: (ii) Scope:
Delegation: its scope is narrow, as it is limited to a superior and his immediate subordinate.
Decentralisation: its scope is wide, as it extends delegation to the lowest level of management.
Step 4: (iii) Purpose:
Delegation: the purpose is to lessen the burden of the manager.
Decentralisation: the purpose is to increase the role of subordinates in the organisation by giving them more autonomy.
Final Answer:
Delegation is a one to one transfer of authority with narrow scope to reduce the burden of the manager. Decentralisation is a wide spread of authority to all levels to give subordinates more autonomy.