Centralization and Decentralization
February 12, 2025
Supervisor, being the manager in a direct contact with the operatives, has got multifarious function to perform. The objective behind performance of these functions is to bring stability and soundness in the organization which can be secured through increase in profits which is an end result of higher productivity. Therefore, a supervisor should be concerned […]
Internal Limitations There are several limitations of planning. Some of them are inherit in the process of planning like rigidity and other arise due to shortcoming of the techniques of planning and in the planners themselves. Rigidity Planning has tendency to make administration inflexible. Planning implies prior determination of policies, procedures and programmes and a […]
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Planning facilitates management by objectives. Planning begins with determination of objectives. It highlights the purposes for which various activities are to be undertaken. In fact, it makes objectives more clear and specific. Planning helps in focusing the attention of employees on the objectives or goals of enterprise. Without planning an organization has no guide. Planning […]
Specialization – Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work is helping in bringing specialization in various activities of concern. Well defined jobs – Organizational structure helps in putting right men on right job which can be done by selecting people for […]
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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