Distinguish between centralisation and decentralisation.

Or

Distinguish between Delegation of Authority and Decentralisation on the basis of

(i) Nature, (ii) Freedom in Action, (iii) Status and (iv) Scope.

Solution

Basis of Difference	Delegation of Authority	Decentralisation
1. Nature	Delegation of authority is inevitable for every organisation 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 organisation because it is not essential that senior officers distribute their authority throughout the organisation. Thus, work can proceed in its absence.
2. Freedom in Action	Less Freedom. Under this even after delegating authority, delegator has full control on his subordinate.	More freedom. Under this most often, the delegator loses 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, that is why its scope is limited.	This depicts broader distribution of authority that is why its scope is broad.

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