Question

Distinguish between delegation and decentralisation of authority.

How is delegation different from decentralisation? Explain with examples.

Answer 1

Basis	Delegation	Decentralisation
1. Nature	Delegation is a compulsory act as no manager can perform all tasks on his own	Decentralisation is an optional policy-decision at the discretion of the top management
2. Purpose	To reduce the burden of the manager	To increase the role and autonomy of lower level managers
3. Scope	Its scope is narrow as it is confined to a superior and his immediate subordinate	Its scope is wide as it involves extension of delegation to the lowest level of management
4. Status	It is a process of sharing tasks and authority	It is the result of the policy decision taken by the top management
5. Freedom of action	There is less freedom to take decisions due to more control by the superior	There is more freedom of action due to Jess control by the top management
6. Example	A sales manager assigns tasks to a sales executive	A company grants decision-making power to regional offices