Difference between Delegation and Decentralisation of Authority

This article will help you to learn about the difference between delegation and decentralization of authority.

Difference between Delegation and Decentralisation of Authority

Difference – Delegation of Authority

1. Delegation has narrow scope as there is limited transfer of authority.

2. Delegation is complete when there is transfer of authority from one person to another.

3. The delegator continues to control the activities delegated to subordinates.

4. Delegation is possible without decentralisation.

5. Lower level managers of every unit carry out plans framed by the superiors.

6. Power to control delegated tasks vests with the delegator.

7. Ultimate responsibility for delegated tasks remains with the deiegator.

8. Delegation is more of a routine that reduces the burden of top executives.

Difference –  Decentralisation of Authority

1. Decentralisation is wider in scope as there is wide distribution of authority.

2. It is complete when authority is delegated to the maximum possible extent. It is the end result of delegation.

3. Top management controls only strategic issues. Control over routine matters is exercised by lower level managers only.

4. Decentralisation is not possible without delegation. Delegation is prerequisite to decentralisation.

5. Managers of each unit frame their own plans.

6. Power to control is delegated to lower level managers.

7. Responsibility vests with the decision-making units.

8. Decentralisation is important for the organisation to remain competitive in the changing environment. Every decision cannot be taken at the top level. Decision-making power has to be given to lower levels of management.