Delegation and Decentralization: A Comparative view
Delegation helps a manager to extend his area of operations as without it, his activities would be restricted to only what he himself can do. Decentralization refers to delegation of authority throughout all the levels of the organization. Decision making authority is shared with lower levels and is consequently placed nearest to the points of action.
Delegation
- Nature: Delegation is a compulsory act because no individual can perform all tasks on his own.
- Freedom of action: More control by superiors hence less freedom to take own decisions.
- Status: It is a process followed to share tasks.
- Scope: It has narrow scope as it is limited to superior and his immediate subordinate.
- Purpose: To lessen the burden of the manager.
Decentralization
- Nature: Decentralization is an optional policy decision. It is done at the discretion of the top management.
- Freedom of action: Less control over executives hence greater freedom of action.
- Status: It is the result of the policy decision of the top management.
- Scope: It has wide scope as it implies extension of delegation to the lowest level of management.
- Purpose: To increase the role of the subordinates in the organization by giving them more autonomy.
