State any two points of importance of decentralisation.


(a) Quick decision making (b) Better control.

 

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'The question is not whether there should be decentralisation, but decentralisation to what extent?' What does this statement indicate about decentralisation?


It is about the importance of decentralisation.

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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.


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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Explain the meaning of ‘Delegation of Authority’ and ‘Decentralisation’.

Differentiate between the two on the basis of (i) Freedom in Action and (ii) Purpose.


Basis of Difference

Delegation of Authority

Decentralisation

1. 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.

2. Purpose

The purpose is reduction of the
workload of an officer.

The purpose is expansion of the
authority in an organisation.

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Name the activity which increases the importance of the role of subordinates.


Decentralisation.

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