Annamalai University Mba Assignment-Principles of Management

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Q1. Discus between delegation and decentralization. Cite some of the important obstacles to effective delegation?
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
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

Less Freedom
Under this even after
authority,delegator has
full control on his
More freedom.
Under this most often,
the delegator looses the
control on his
3. Status
This is a process done as
a result of division of
This is a result of the
policies framed by
higher officials.
4. Scope
Delegation of Authority
depicts limited
distribution of authority
that is why its scope is
This depicts broader
distribution of authority
that is why its scope is
5. Purpose The purpose is reduction
of the workload of an
The purpose is
expansion of the
authority in an
The advantages of decentralization are similar to the
advantages of delegation. Unburdening of top management,
improved decision making because decisions are made closer to the scene of action, better training, morale and initiative at lower levels and more flexibility and faster decision making are some advantages of decentralization.

Importance of delegation
1)Effective Management: Effectiveness means successful
accomplishment of an objective. Delegation of authority
reduces the workload of a manager. Managers who
practice delegation of authority are definitely better
decision makers than those managers who do not delegate
authority. The former ones get the benefit of the skills of their subordinates. This situation eases the attainment of

objective. As a result, the effectiveness of managers is
2)Employee Development: The mental growth of a person
takes place only when he has authority to take decisions.
The process of delegation of authority provides the
authority to take decisions to subordinates. With the given authority, managers take decisions contingent to the
situations. As a result, in future they become more able to take extra responsibility.
3)Motivation of Employee: In the process of delegation of
authority, both authority and responsibility are delegated
to the subordinates. This situation provides liberty to work and take on part of subordinates. Gaining through this,
they exhibit their talent and skill. With better performance the subordinates create a niche for themselves in the
organization. Consequently, they get job satisfaction and
feel motivated to perform...
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