Delegation and Decentralisation

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DELEGATION AND DECENTRALISATION

DELEGATION 
Meaning -  Delegation of authority is a process by which a manager assigns some of the tasks within his work to his subordinate on selective basis, allows him to exercise authority on his behalf to accomplish the tasks and makes him accountable for the performance.
Elements of Delegation
Responsibility: Responsibility denotes the work or duties assigned to a person by virtue of his position in the organisation.It refers to mental and physical activities which must be performed to carry out a task. In order to enable the subordinate to perform his responsibility well, the superior must clearly tell the former as to what is expected from him.
Authority: Authority is the right granted to an employee to make possible the performance of work assigned.power to use raw material, spend money, or ask for allotment of money, to hire and to fire, etc. has to be delegated to individuals to whom the work is assigned. 
Accountability: Accountability is the obligation to carry out responsibility and exercise authority in terms of performance standards established by the superior. An individual should be answerable to only one immediate superior and no more.
PRINCIPLES OF DELEGATION OF AUTHORITY
* Proper Planning
* Parity of authority and responsibility
* Clarification of limits of authority
* Effective communication
* Absoluteness of accountability
* Unity of command

Comparison between Delegations and Decentralization

DECENTRALISATION


MEANING: Decentralisation  refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points.
Decentralisation is an extension of Delegation which means entrustment of authority and responsibility from one individual to another. But decentralisation means scattering of authority within entire  enterprise. Its a main difference.
IMPORTANT FACTORS:
(i) Decentralisation of authority is facilitated when it is released to take quick and appropriate decisions at a level at which they are really required with a view to cash on the opportunity present.
(ii) When the top management wants to reduce communication work, decentralisation of authority is preferred.























 

Comments

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