September 12, 2017

Difference Between Delegation And Decentralization Of Authority

The major differences between delegation of authority and decentralization are as follows:
1. Meaning 
Delegation: Transferring the rights and responsibility from top level management to the lower level subordinates.
Decentralization: It is systematic distribution of authority and decision making power to the middle and lower level of management.

2. Possibility

Delegation: Delegation of authority is possible with or without decentralization.
Decentralization: Decentralization is impossible without delegation of authority.

3. Technique

Delegation: Delegation of authority is management technique.
Decentralization: Decentralization of authority is management philosophy.

4. Relationship

Delegation: Superior and immediate subordinate relationship.
Decentralization: Top level management and various sections or departments relationship.

5. Process

Delegation: It is a process in the organization and a cause of decentralization.
Decentralization: It is the end result of delegation process or effect of delegation of authority.

6. Need

Delegation: It is important for all types of organizational.
Decentralization: It is not essential for all types of organizational structure.

7. Purpose

Delegation: It is practiced to minimize the burden of top level manager.
Decentralization: Decentralization helps in preparing organizational participants. 

8. Control

Delegation: Top executive who is delegating the authority exercises controlling the organization.
Decentralization: Departmental heads exercise controlling in decentralization. 
Difference-delegation-decentralization


9. Withdrawal

Delegation: Easy to withdraw delegated authority at any time.
Decentralization: Difficult to withdraw authority until the end result.

      Also Read:
Difference Between Authority And Responsibility

10. Acceptance

Delegation: Subordinates can refuse delegation of authority.
Decentralization: Less chance of refusing decentralization of authority.

11. Usage

Delegation: It is useful for all types of organizations.
Decentralization: It is not useful for small and medium sized organizations.

12. Accountability

Delegation: Top level manager is accountable.
Decentralization: Departmental heads and functional managers are accountable.

13. Responsibility

Delegation: Responsibility lies with the top manager and is not delegated.
Decentralization: Responsibility is transferred to the departmental heads.

14. Parties

Delegation: It includes top level management and subordinates.
Decentralization:  It includes all level managers of different sections and departments.