Question

Long Answer Questions
What is meant by decentralization of authority? How is it different from delegation of authority?

Answer 1

Decentralization can be defined as even and systematic distribution of authority at every level of management. Under decentralization every employee working at different levels gets some share in the authority. Decentralization is a policy matter and managers plan in advance whether to go for centralized or decentralized policy.

Decentralization is extension of delegation. In delegation we multiply the authority with two whereas in decentralization the authority is multiplied by many because systematic delegation taking place at every level will result in evenly distribution of authority and responsibility at every level and result in decentralization. If delegation is restricted to certain levels only then there will be no complete decentralization also.