Difference Between Delegation And Decentralization

Difference Between Delegation And Decentralization

The major dissimilarities or difference between delegation and decentralization of authority can be described as follows:

1. Introduction

Delegation: Transfer or handing over some authority, rights, and responsibility from high level management to middle and lower level subordinates.

Decentralization: It is a distribution of authority and responsibilities to different levels of management.

2. Refers To

Delegation: It refers to passing of authority.

Decentralization: It refers to dispersion of authority

3. Purpose/Objective

Delegation: To reduce the work load and mental burden of managerial personnel in the organization.

Decentralization: To promote diversity, to remain competitive and to ensure organizational participation. 

4. Suitable/Applicable

Delegation: Delegation of authority is suitable or applicable for all kinds of organizations (both large and small firms).

Decentralization: Decentralization of authority is applicable and suitable for large organizations with several branches, departments and units.

5. Technique Or Philosophy

Delegation: Management technique

Decentralization: Management philosophy

6. Accountability

Delegation: Top level authority or superiors are accountable

Decentralization: Departmental managers, division heads and branch managers are accountable.

7. Freedom/Autonomy

Delegation: Less freedom to subordinates

Decentralization: More freedom to subordinates

     Also Read: 

Difference Between Centralization And Decentralization

8. Delegation Of Responsibility

Delegation: No

Decentralization: Yes

9. Withdrawal Of Authority

Delegation: Easy to withdraw

Decentralization: Difficult to withdraw authority

10. Scope

Delegation: It has limited scope because total authority and responsibility are not transferred.

Decentralization: It has wider scope than delegation of authority because both authority and responsibility are fully transferred.

Delegation Vs Decentralization (Comparison Chart)

Basis	Delegation	Decentralization
Introduction	Handing over some authority to middle and lower level	Distribution of authority to different levels
Refers To	Passing Of Authority	Dispersion of authority
Purpose/Objective	To minimize load and burden of managers	To promote diversity
Applicable For	All kind of organizations	Large organizations
It Is	Management technique	Management Philosophy
Accountability	Top level superiors	Branch managers and unit heads
Freedom To  Subordinates	Less	More
Responsibility	Not delegated	Delegated
Authority Withdrawal	Easy	Difficult
Scope	Limited	Wider

I hope this post is helpful to understand the difference between delegation and decentralization and to make comparison between them.