Question
“The concept of decentralisation is related to the concept of delegation”. Explain this statement in brief.
Solution
The relationship between decentralisation and delegation can be clarified in the following way: Example: If CEO delegates some authority to a divisional manager then this is called delegation of authority. If divisional manager delegates his authority further to his subordinate this will be called decentralisation. If the same process is repeated for two divisions then expansion of decentralisation takes place. If this process is implemented on the organisation as a whole then decentralisation will be at its peak.
