Delegation and Decentralization of Authority and Span of Control

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Difference between Delegation of Authority and Decentralization of Authority

Delegation of Authority Delegation of Authority Decentralization of Authority 1. Meaning: Delegation Means Delegating of Authority by the Superior to Their Subordinates. 2. Nature: It is of Personal Nature, Because under It, Functions, Power and Authority Are Entrusted from the Higher Post to the Nearest Lower Post. 3. Essentiality: It is Essential for Achieving Business Objectives. 4. Activity: This is a Timely Activity. 5. Uniformity in Policies: Policies of Delegation Should Have Uniformity. 6. Authority: In this System, Only the Higher Officer is the Controller and Everything is in His Hands. 7. Limit Ants: Limits of Delegation May Vary from Department to Department. 8. End of Process: Process of Delegation Ends, when a Person Entrusts and of Functions and Authority to Some Other Person. Decentralization Means Entrusting the Power or the Authority in the Entire Organization. Whereas, It is of Holistic Nature, Because, under It, the Powers Are Delegated. It is Essential for Achieving the Objectives of the Organization. This is a Strategic Activity. Under It, the Policies Have the Uniformity. In this System, Only the Co – Coordinating Control is in the Hands of the Top Manager. All Other Control Are in the Hands of the Subordinates. Under It, No Variations is Possible, in this Regard, in Any Division of the Organization. It Ends with Distribution of All Activities to All the Persons
Delegation of AuthorityDecentralization of Authority
1. Meaning: Delegation means delegating of authority by the superior to their subordinates.

2. Nature: It is of personal nature, because under it, functions, power and authority are entrusted from the higher post to the nearest lower post.

3. Essentiality: It is essential for achieving business objectives.

4. Activity: This is a timely activity.

5. Uniformity in policies: Policies of delegation should have uniformity.

6. Authority: In this system, only the higher officer is the controller and everything is in his hands.

7. Limits: Limits of delegation may vary from department to department.

8. End of Process: Process of delegation ends, when a person entrusts and of functions and authority to some other person.

Decentralization means entrusting the power or the authority in the entire organization.

Whereas, it is of holistic nature, because, under it, the powers are delegated.

It is essential for achieving the objectives of the organization.

This is a strategic activity.

Under it, the policies have the uniformity.

In this system, only the coordinating control is in the hands of the top manager. All other control are in the hands of the subordinates.

Under it, no variations is possible, in this regard, in any division of the organization.

It ends with distribution of all activities to all the persons.

Span of Control or Span of Management

Hamilton was the first, to attract attention towards the principle of span of control. He explained that normal human brain can effectively control 3 to 6 brains.

Illustration: Span of Control or Span of Management