| Basis | Delegation | Decentralization |
| 1. Nature | It is a compulsory act. | It is an optional policy. |
| 2. Freedom of action | Less freedom to take
decisions due to more
control by the superiors. | More freedom of action
due to less control by the
top management. |
| 3. Status | It is process of sharing
tasks and authority. | It is the result of policy
decisions taken by top
management. |
| 4. Scope | Narrow – as it is
confined to a superior
and his immediate
subordinate. | Wide – It includes
extension of delegation to
all the levels of
management. |
| 5. Purpose | To reduce the burden of
manager. | To increase the role and
the autonomy of lower
level of management |
