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Answer» Following is the meaning and difference between Delegation and Decentralization : | Basis of difference | Delegation | Decentralization | | 1. Meaning | Delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance. (or any other suitable meaning) | Decentralization explains the manner in which decisionmaking responsibilities are divided among hierarchical levels. (or any other suitable meaning) | | 2. Nature | Delegation is a compulsory act because no individual can perform all tasks on his own. | Decentralization is an optional policy decision. It is done at the discretion of the top management. | | 3. Freedom of action | More control by superiors hence less freedom to take own decisions. | Less control over executives hence greater freedom of action. | | 4. Status | It is a process followed to share tasks. | It is the result of the policy decision of the top management. | | 5. Scope | It has narrow scope as it is limited to superior and his immediate subordinate. | It has wide scope as it implies extension of delegation to the lowest level of management. | | 6. Purpose | To lessen the burden of the manager. | To increase the role of the subordinates in the organization by giving them more autonomy. |
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