Business Studies

Long Answer Questions: 
Define delegation and differentiate it with decentralization. Explain any three points.


SOLUTION
Delegation is the assignment of any responsibility or authority to another person (normally from a manager to a subordinate) to carry out specific activities. It is one of the core concepts of management leadership. However, the person who delegated the work remains accountable for the outcome of the delegated work. Delegation empowers a subordinate to make decisions.

Major Differences Between Delegation and Decentralization.
1. Responsibility:
In delegation, a superior delegates or transfers some rights and duties to a subordinate but his responsibility in respect of that work does not end.
On the other hand, decentralization relieves him from responsibility and the subordinate becomes liable for that work.
2. Process:
Delegation is process while decentralization is the end result of a deliberate policy of making delegation of authority to the lowest levels in managerial hierarchy.
3. Need.
Delegation is almost essential for the management to get things done in the organisation i.e., delegating requisite authority for performance of work assigned. Decentralization may or may not be practiced as a systematic policy in the organisation.
4. Control:
In delegation the final control over the activities of organisation lies with the top executive while in decentralization the power of control is exercised by the unit head to which the authority has been delegated.
5. Authority:
Delegation represents selecting dispersal of authority whereas decentralization signifies the creation of autonomous and self-sufficient units or divisions.
6. Scope:
Delegation hardly poses any problem of co- ordination to the delegator of authority. While decentralization poses a great problem in this regard since extreme freedom of action is given to the people by creating self-sufficient or autonomous units.
7. Good Results:
Decentralization is effective only in big organisations whereas delegation is required and gives good results in all types of organisations irrespective of their size.
8. Nature:
Delegation is the result of human limitation to the span of management. Decentralization is the other hand, is the result of the big size and multifarious functions of the enterprise.
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