What is meant by delegation of authority ? Clarify any two differences between 'delegation of authority' and 'decentralisation'.
Answer – Delegation assigns duties and grants the authority needed to perform them to a subordinate, while the superior retains ultimate accountability. Decentralisation systematically disperses decision-making authority to lower organisational levels.
Basis | Delegation | Decentralisation |
Nature | A superior assigns duties and authority to a subordinate. | Authority is systematically dispersed across levels. |
Scope | Relatively narrow, involving a relationship. | Wider, covering the organisation. |
Necessity | Essential for effective management. | A policy choice whose degree can vary. |
Freedom | Limited by the authority delegated. | Relatively greater autonomy at lower levels. |
Purpose | Reduce workload and get work done through others. | Increase lower-level participation and decision responsibility. |
Relationship | Foundation for decentralisation. | Extension of delegation. |
In both, granting authority does not remove the superior's ultimate accountability.
Objective Type Questions