Delegation and Decentralisation of Authority

Delegation of power and decentralisation of authority are taking place in all organisations even unconsciously. Decentralisation and delegation has a thin difference. Decentralisation connotes the disposal of power from the top where as delegation refers to the entrusting of authority to the lower staff.

Haimann defined that the Statement that a particular company is decentralised will mean to one listener an organisational arrangement in which a great management hierarchy. Differences between delegation and decentralisation have been pointed out by Haimann as follows: Decentralisation can be viewed as an extension of delegation.

Whereas delegation mainly refers to the granting of authority and the creation of responsibility as between one individual and another, decentralisation is the situation which exists as a result of the systematic delegation of authority throughout the organisation.