|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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