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12157 Disadvantages of Planning

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 […]

10279 Manpower Planning – Meaning, Need and Its Importance

Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena […]

10545 Principles of Organizing

The organizing process can be done efficiently if the managers have certain guidelines so that they can take decisions and can act. To organize in an effective manner, the following principles of organization can be used by a manager. Principle of Specialization According to the principle, the whole work of a concern should be divided […]

11695 Types of Recruitment

Recruitment is of 2 types Internal Recruitment – is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three – Transfers, promotions and Re-employment of ex-employees. Internal recruitment may lead to increase in employee’s productivity as their motivation level increases. […]

9873 Importance of Delegation

Delegation of authority is a process in which the authority and powers are divided and shared amongst the subordinates. When the work of a manager gets beyond his capacity, there should be some system of sharing the work. This is how delegation of authority becomes an important tool in organization function. Through delegation, a manager, […]

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BasisDelegationDecentralization
MeaningManagers delegate some of their function and authority to their subordinates.Right to take decisions is shared by top management and other level of management.
ScopeScope 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.
ResponsibilityResponsibility remains of the managers and cannot be delegatedResponsibility is also delegated to subordinates.
Freedom of WorkFreedom 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.
NatureIt is a routine functionIt is an important decision of an enterprise.
Need on purposeDelegation 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 AuthorityThe 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 ResponsibilityResponsibility cannot be delegatedAuthority with responsibility is delegated to subordinates.
DegreeDegree 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
ProcessDelegation is a process which explains superior subordinates relationshipIt is an outcome which explains relationship between top management and all other departments.
EssentialityDelegation is essential of all kinds of concernsDecentralization is a decisions function by nature.
SignificanceDelegation is essential for creating the organizationDecentralization is an optional policy at the discretion of top management.
WithdrawalDelegated authority can be taken back.It is considered as a general policy of top management and is applicable to all departments.
Freedom of ActionVery little freedom to the subordinatesConsiderable 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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