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12173 Relationship between planning and controlling

Planning and controlling are two separate fuctions of management, yet they are closely related. The scope of activities if both are overlapping to each other. Without the basis of planning, controlling activities becomes baseless and without controlling, planning becomes a meaningless exercise. In absense of controlling, no purpose can be served by. Therefore, planning and […]

12683 Centralization and Decentralization

Centralization is said to be a process where the concentration of decision making is in a few hands. All the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen, “Centralization” is the systematic and consistent reservation of […]

12898 Key Features of the Controlling Function in Management

What is Controlling? Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of […]

10178 Line Organization

Line organization is the most oldest and simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom. This is the reason for calling this organization as scalar organization which means scalar chain of […]

9402 Functional Organization

Functional organization has been divided to put the specialists in the top position throughout the enterprise. This is an organization in which we can define as a system in which functional department are created to deal with the problems of business at various levels. Functional authority remains confined to functional guidance to different departments. This […]

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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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