Business StudiesOrganising

Identify the incorrect statement related to " difference between dele…

Identify the incorrect statement related to " difference between delegation and decentralisation".

Answer & explanation

Correct answer: option 4

The correct answer is option 4- Delegation grants less control by superiors, hence greater freedom of action; decentralization gives more control to superiors, hence less freedom of action.

Delegation grants less control by superiors, hence greater freedom of action; decentralization gives more control to superiors, hence less freedom of action is the incorrect statement.

Delegation and Decentralisation: A Comparative view

S No	Basis	Delegation	Decentralisation
1	Nature	Delegation is a compulsory act because no individual can perform all tasks on his own.	Decentralisation is an optional policy decision. It is done at the discretion of the top management.
2	Freedom of Action	More control by superiors hence less freedom to take own decisions.	Less control over executives hence greater freedom of action.
3	Status	It is a process followed to share tasks.	It is the result of the policy decision of the top management.
4	Scope	It has narrow scope as it is limited to superior and his immediate subordinate.	It has wide scope as it implies extension of delegation to the lowest level of management.
5	Purpose	To lessen the burden of the manager.	To increase the role of the subordinates in the organisation by giving them more autonomy.