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Annamalai University Mba Assignment-Principles of Management

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Annamalai University Mba Assignment-Principles of Management
Q1. Discus between delegation and decentralization. Cite some of the important obstacles to effective delegation?
Answer:
Delegation is the process by which authority passes from manager to his subordinate. Delegation is the only solution to cope with the increasing work load of managers as the organisation grows. Because of the constraints of time and ability, a manager cannot perform all the tasks himself. So he delegates certain of the tasks to the subordinate and gets them done. Delegation and decentralization of authority are closely related.
Decentralization is an expansion of delegation of authority.
While in delegation authority is transferred on one to one basis from the superior to subordinate, decentralization of authority is broader in scope and involves the transfer of authority in the organisation context from top to lower levels of management in the hierarchy. Thus the greater amount of authority delegated throughout the organisation, the more decentralized the organisation is.
Basic points of difference are as below:
Basis of
Difference
Delegation of Authority Decentralization
1. Nature Delegation of authority is inevitable for every organization because managers have to delegate authority to their subordinates in order to get the work done. Thus work cannot proceed in its absence.
It is not necessary to be found in every organization because it is not essential that senior officers distribute their authority throughout the organization. Thus, work can proceed in its absence. 2.
Freedomin
Action
Less Freedom
Under this even after delegating authority,delegator has full control on his subordinate. More freedom.
Under this most often, the delegator looses the control on his subordinate. 3. Status
This is a process done as a result of division of work. This is a result of the policies framed by higher officials.
4. Scope
Delegation of Authority depicts limited distribution of authority

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