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.