Question 3 (a)
Delegation and decentralisation: distinction, degree and determining factors
9 marks
- Time to write
- About 18 minutes
- Notes
- Crux notes
Question
Question 3 (a) · 9 marksDistinguish between delegation and decentralization. How is the degree of decentralization to be measured? What are the factors that determine the degree of decentralization?
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- Distinguish…How…?What are the…?3 questions in all: answer every one.
- Distinguish betweenSet the differences out in a table, basis by basis, not as two separate essays.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Meaning and distinction table 3½ marks 6 min
- 2 Measuring the degree of decentralisation 2½ marks 4 min
- 3 Factors determining the degree 2½ marks 4 min
- 4 Conclusion ½ mark 1 min
- Check: every ask answered, key terms underlined 2 min
Easy marks
- Step 1 opens with the meaning: a one-line definition, the quickest mark in it.
Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks. End with step 4 in a line or two.
Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
Delegation and decentralisation
Delegation is the act by which a manager assigns a task to a subordinate, grants the authority needed to do it and makes the subordinate answerable to him or her for the result; the manager stays answerable to his or her own superior for that work, because accountability itself cannot be passed down. Decentralisation is the systematic, organisation-wide dispersal of decision-making authority to lower levels, with only matters of policy and overall control kept at the top. Delegation is a process between two individuals; decentralisation is the outcome of delegation carried out systematically throughout the organisation.
1The counter can't say yes: she phones head office upstairs while the queue fumes.
CentralisationConcentrated at the top; slower; matters go up the hierarchy.
2The same counter, but the stamp is in her own hand—upstairs, the boss studies the plan.
DecentralisationSpread across levels; decisions taken on the spot; top managers focus on strategy.
Distinction between delegation and decentralisation
| Basis | Delegation | Decentralisation |
|---|---|---|
| Who is involved | One superior and one subordinate | Every level of the organisation |
| Is it compulsory? | Yes; no manager can do everything alone | No; top management chooses how far to go |
| Can it be undone? | Easily; the superior takes the task back | Only with a change of policy |
| Accountability | The delegating superior stays accountable for the work | Unit heads answer for their units' results; top management for the whole |
| How control works | The superior checks the delegated task | Top management sets policies and judges results |
| Room for decision | Only within the task handed over | Broad decision rights within the unit |
| What it is | A day-to-day act of a manager | A deliberate policy for the whole organisation |
| Why it is done | To spread the manager's workload | To give units autonomy and speed |
Measuring the degree of decentralisation
Since decentralisation is a matter of degree, it can be judged by:
- Number of decisions taken at lower levels: the more decisions made below, the greater the decentralisation.
- Importance of decisions taken at lower levels: for instance, the size of expenditure a branch manager may approve without reference upward.
- Range of functions affected by lower-level decisions: whether lower managers decide only on production, or also on purchasing, personnel and marketing.
- Amount of checking required: the less a decision has to be referred to or approved by superiors, the greater the decentralisation.
- Level at which decisions are taken: the closer to the point of action, the more decentralised.
Factors determining the degree of decentralisation
- Availability of capable managers: decentralisation needs competent lower managers.
- Geographical dispersion: widely spread operations favour local decision making.
- History and management philosophy: firms that grew by merger, or whose leaders value autonomy, decentralise more.
- Control, communication and coordination systems: good budgeting and information systems, regular reporting and ways of keeping units in step allow more freedom without loss of control.
- Size and complexity: large, diversified firms decentralise more.
- Nature of the environment: rapid change and local variation favour decentralisation.
- Desire for independence among managers and the need to develop them.
- What a mistake would cost: the costlier the decision, the higher it is taken.
- Need for one policy everywhere: where consistency (pricing, quality, accounting) matters, authority stays at the centre.
Example. A hotel chain lets each hotel's general manager decide staffing, local promotions and room rates within a band (decentralised), while head office decides brand standards and new properties.
Delegation is the building block, decentralisation the organisational pattern. The right degree depends on the organisation's size, decisions, people and environment.
Where the 9 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Meaning and distinction (table) | 3.5 |
| 2 | Measuring the degree of decentralisation | 2.5 |
| 3 | Factors determining the degree | 2.5 |
| 4 | Conclusion | 0.5 |
| Total | 9 |
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