What is the difference between decentralization and delegation

The transfer of authorities, functions, rights, duties, powers and accountability of the top level management to the middle or low-level management is known as Decentralization. It is nothing but the delegation of authority, in the entire organisation or it can be said that decentralization is an improvement over delegation. When there is decentralization, the considerable authority, responsibility and accountability are vested to the lower levels of the organisational hierarchy.

Many organisations take decisions regarding the diffusion of authority from a higher level to other levels of management like departments, divisions, units, centres, etc. This dissemination of authority is known as delegation, but when it is exercised in the whole entity, on a large scale, it is decentralization.

So here it must be noted that the extent to which the right, duties and powers are disseminated is important. This is the greatest advantage of decentralization that the top management gets unburden, and timely decisions can now be taken on different matters. Moreover, it will lead to better supervision and motivation of the employees. Delegation and Decentralization both have its merits and demerits.

They are not similar terms, but the decentralization is the result of the delegation of authority. So there is no competition between them as they both complete each other. They are helpful to the success and progress of the organisation, but there is a precondition for the delegation that there should be a desire of the manager to give freedom of work to the persons whom work is assigned.

Let them choose the methods and solutions for their problems, in order to guide them and let them learn from their mistakes. In this way, they will get the training and development. Another prerequisite is that the juniors should communicate with the seniors freely. However, this is a demerit of decentralization, which due to no control of top level management over the middle or low-level management, the absence of coordination and leadership is felt.

Heartfelt Thanks for providing us with such a wealth of knowledge and a great way to show it. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Key Differences Between Delegation and Decentralization The following are the major differences between delegation and decentralization: When an authority or responsibility is entrusted to the subordinate by a superior is known as Delegation.

It spreads throughout the organization i. 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. 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. Generally, there is some confusion regarding the meanings of both because of the fact the process in respect of both is almost the same.

Some people consider them synonyms but that is wrong. Their difference can understand with the help of an example. Suppose, a general manager allows the manager of the department of production to appoint employees with a pay range of less than dollar in his department, it will call delegation.

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.