Delegation: It is useful for all types of organizations. Decentralization: It is not useful for small and medium sized organizations. Delegation: Top level manager is accountable. Decentralization: Departmental heads and functional managers are accountable.
Delegation: Responsibility lies with the top manager and is not delegated. Decentralization: Responsibility is transferred to the departmental heads. Delegation: It includes top level management and subordinates. Decentralization: It includes all level managers of different sections and departments. Technique of management Philosophy of management. Accountability Superiors are accountable for the acts done by subordinates.
Department heads are accountable for the acts of the concerned department. Requirement Yes, for all organization delegation of authority is very necessary. No, it is an optional philosophy which may or may not be adopted by the organization. Liberty of Work Subordinates do not have full liberty. A substantial amount of freedom is there.
Control The ultimate control is the hands of superior. The overall control vests with top management and delegates authority for day to day control to departmental heads. Relationship Creates superior-subordinate relationship.
A step towards creation of semi-autonomous units. The assignment of authority or decision-making power or duty of a person who is at a higher level to an individual who is below his level is known as Delegation.
It is a requirement of the all the organisation, for its growth and development. A delegation of authority refers that the senior is handing over the decision-making powers to his junior. Although, the senior cannot pass on an authority which he does not possess. 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.
Similar Articles Under - Organizing Function. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link s to ManagementStudyGuide. Scope of delegation is limited as superior delegates the powers to the subordinates on individual bases. On the contrary, if this authority of appointing the employees is given to the managers of all the departments, it will call decentralization. If the departmental manager assigns this authority to a sub-manager of his department, it will be the extension of decentralization.
In this reference, it is said that if we delegate the authority, we multiply it by two, if we decentralize it, we multiply it by many. Delegation means the passing of authority by one person who is in a superior position to someone else who is subordinate to him. It is the downward assignment of authority, whereby the manager allocates work among subordinates.
On the other hand, Decentralization refers to the dispersal of powers by the top-level management to the other level management. It is the systematic transfer of powers and responsibility, throughout the corporate ladder.
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