Delegation and Decentralisation are two related topics. Delegation is the technique adopted to achieve Decentralisation. Delegation is, although being similar to Decentralisation, they differ widely from each other. Delegation is an essential part of management for the smooth functioning of an institution, whereas Decentralisation might or might not be implemented as a systematic policy in an institution. Decentralisation is more like a management philosophy, while Delegation is a technique used in management.
According to O.S. Miner, “Delegation takes place when one person gives another the right to perform work on his behalf and in his name and the second person accepts a corresponding duty or obligation to do that is required on”. Delegation is the concept of management leadership that requires executives to determine the sets of tasks assigned to their subordinates and provide the necessary authority to complete the given task. Delegation allows the associates to work effectively and make decisions according to their own accord, with minimal intervention. In return, this increases the productivity inside the organisations and creates efficiency. Individuals can distribute their workload and build trust among colleagues.
To effectively manage an organisation of any kind, One should adequately perform Delegation. Before delegating a role, the manager must consider the person’s potential skills and competency to complete the given task. In today’s world, where organisations have such a heavy workload and complex tasks and objectives, the success of their goal relies considerably on effective Delegation. Managers often delegate tasks to help their associates develop their decision-making skills and sharpen their skills related to the role delegated to them. Sometimes, we delegate functions to get a person’s perspective or abilities more qualified for the task.
To understand Decentralisation appropriately, we must know how it came into existence. Decentralisation comes from the word centralisation. Centralisation was first used in France in 1794 as the post-Revolution Directory leadership created a new government structure. Almost 30 years later, the word decentralisation came into existence. Then in 1863, a retired French bureaucrat named Maurice Block wrote an article called “Decentralisation” that reviewed the functions of the government and bureaucratic centralisation and how the French were putting in efforts for the Decentralisation of the government functions. So we can understand that Decentralisation is the process of distribution of authority over roles involving decision making and planning from a central location or group to others to avoid the accumulation of power to a small group or location and becoming domineering.
Decentralisation in Management
Decentralisation in management is a typical structure that organisations are based on. Upper management delegates decision making responsibilities and other daily tasks to middle or lower management so that the upper management can focus on major decisions with more time to themselves. It is an orderly way of assigning responsibilities and authority through different hierarchy levels in command in an institution. It defines how we can distribute power among various groups in the order of the management.
There are several advantages of Decentralisation in an organisation. Some of them are mentioned below.
Decision making becomes more efficient and less time consuming when we pass down the authority to the different levels of management. The person nearest to the situation can make decisions effectively.
It increases the confidence of subordinates because when authority we delegate a role to them, they have to rely on their own decisions. This way, subordinates are challenged constantly, developing problem-solving skills when facing problems.
Decentralisation teaches subordinates to make better decisions when faced with a problem which results in helping them develop managerial skills. Decentralisation can help them receive a promotion to a higher level in the hierarchy from their current position.
Decentralisation relieves the upper management from providing direct supervision for every function in the organisation, giving them time to divulge themselves to make more policy decisions.
It provides more control over the organisations’ performance since each level’s performance can be determined separately for their results and each department’s contribution to achieving an objective.
Decentralisation improves communication between different levels of an organisation and helps build trust.
Difference Between Delegation and Decentralisation
This study material has learned the significant differences between Delegation and Decentralisation. Delegation is defined as the process of delegating tasks to their associates with the necessary authority to complete a particular duty. Decentralisation is a concept of distributing authority and functions over different hierarchy levels to relieve upper management to indulge in more policy decisions and avoiding the accumulation of power in a specific location or with a group of people.