Wednesday, August 13, 2014

Delegation vs. Decentralisation

Basis
Delegation
Decentralization
Meaning
Manager delegate some of their functions and authority to their subordinates
Right to take decisions is shared by top management and other levels of management
Scope
Limited scope as superior delegate on an individual basis
Wide scope as the decision making is shared by subordinates
Responsibility
Responsibility cannot be delegated and remains with the manager.
Responsibility is also delegated to subordinates
Freedom of work
Freedom is not given to subordinates as they have to work as per instructions of their superiors
Freedom to work can be maintained by subordinates as they are free to take decisions and implement them
Nature
It is a routine function
It is an important decision of an enterprise

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