| Basis of Distinction | Delegation of Authority | Decentralization of Authority |
| (i) Concept | Delegation of authority refers to an act of entrusting the subordinates with same powers that are of the superior authority | Decentralisation of authority refers to dispersal of authority of decision making to persons away from the centre. |
| (ii) Number of persons involved | Delegation of authority involves a manager and his immediate subordinates. Thus, number of persons involved is less. | Decentralisation of authority involves top management and employees at various levels. Thus, the number of persons involved is more. |
| (iii) Responsibility | Delegation does not absolve the delegator of his responsibility. | Under it, the delegator becomes directly liable for actions. |
| (iv) Scope | Its scope is narrow because it involves a manager and his subordinates. | Its scope is wider because it involves top management and the persons working at the lowest levels |
| (v) Grant of authority | Under it, authority is granted by one superior to many subordinates. | Under it, there is diffusion of decision making authority throughout the organisation. |
| (vi) Status | Delegation is a process followed to share tasks. | Decentralisation is the result of the policy decision of the top management. |
| (vii) Essentiality | It is essential for management as subordinates have to be given sufficient authority to perform their duties. | It is optional and not essential in the sense that management may or may not disperse authority |
