Question

“If we delegate authority, we multiply by two; if we decentralise it, we multiply it by many”. How?

Answer 1

Delegation: Multiply by Two

1. In delegation, a manager assigns authority to a subordinate for specific tasks.

2. It is a one-to-one relationship, typically between a superior and a subordinate.

3. Thus, the manager extends his capacity through just one person.

4. Example: A marketing head delegates market research to an assistant manager.

Decentralisation: Multiply by Many

1. In decentralisation, decision-making authority is spread across multiple levels or units of the organisation.

2. It involves systematic delegation to various departments, divisions, or regional offices.

3. This means the organisation's capability is multiplied many times as several units make independent decisions.

4. Example: A multinational company allows each regional office to handle its own marketing and sales strategies.