| Basis |
Delegation |
Decentralization |
| Meaning |
Managers delegate some of their function and authority to their subordinates. |
Right to take decisions is shared by top management and other level of management. |
| Scope |
Scope of delegation is limited as superior delegates the powers to the subordinates on individual bases. |
Scope is wide as the decision making is shared by the subordinates also. |
| Responsibility |
Responsibility remains of the managers and cannot be delegated |
Responsibility is also delegated to subordinates. |
| Freedom of Work |
Freedom is not given to the subordinates as they have to work as per the instructions of their superiors. |
Freedom to work can be maintained by subordinates as they are free to take decision and to implement it. |
| Nature |
It is a routine function |
It is an important decision of an enterprise. |
| Need on purpose |
Delegation is important in all concerns whether big or small. No enterprises can work without delegation. |
Decentralization becomes more important in large concerns and it depends upon the decision made by the enterprise, it is not compulsory. |
| Grant of Authority |
The authority is granted by one individual to another. |
It is a systematic act which takes place at all levels and at all functions in a concern. |
| Grant of Responsibility |
Responsibility cannot be delegated |
Authority with responsibility is delegated to subordinates. |
| Degree |
Degree of delegation varies from concern to concern and department to department. |
Decentralization is total by nature. It spreads throughout the organization i.e. at all levels and all functions |
| Process |
Delegation is a process which explains superior subordinates relationship |
It is an outcome which explains relationship between top management and all other departments. |
| Essentiality |
Delegation is essential of all kinds of concerns |
Decentralization is a decisions function by nature. |
| Significance |
Delegation is essential for creating the organization |
Decentralization is an optional policy at the discretion of top management. |
| Withdrawal |
Delegated authority can be taken back. |
It is considered as a general policy of top management and is applicable to all departments. |
| Freedom of Action |
Very little freedom to the subordinates |
Considerable freedom |
Decentralization can be called as extension of delegation. When delegation of authority is done to the fullest possible extent, it gives use to decentralization.
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