Business StudiesOrganising

Which of the following is the correct distinction between delegation…

Which of the following is the correct distinction between delegation and decentralization?

(A) Delegation is a result of the policy decision of top management, whereas decentralization is a process.

(B) Delegation is a process, whereas decentralization results from the policy decisions of top management.

(D) In delegation, there is more control by the superior, whereas in decentralization, there is less control over executives.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is option 2- (B) and (D) only.

(A) Delegation is a result of the policy decision of top management, whereas decentralization is a process. IT IS INCORRECT.

(B) Delegation is a process, whereas decentralization results from the policy decisions of top management. IT IS CORRECT.

(D) In delegation, there is more control by the superior, whereas in decentralization, there is less control over executives. IT IS CORRECT.

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.