Business Studies

Short Answer Question: 
'If we delegate the authority we multiply with two, if we decentralize it we multiply with many'. Explain. 


SOLUTION
A delegation of authority refers to granting authority by one individual (superior) to another (subordinate). Therefore, its scope is confined to a manager and his immediate subordinate. When we delegate authority, we multiply it by two i.e. the delegator and his subordinate, to whom authority is delegated. Delegation is a process of sharing of task and authority between a manager and his subordinate.
Decentralization of authority is not restricted to two individuals. It involves the systematic delegation of authority at all levels and in all functions of the organization. In case of decentralization, managers at middle and lower levels are granted the authority for taking decisions on tasks assigned to them. Therefore, the scope of decentralization is wider than that of delegation. When we decentralize authority, we multiply it by many.
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Subjective Medium Published on 18th 09, 2020
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