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Organising — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesOrganising4 Marks
Question
Define ‘delegation’ and differentiate it with ‘decentralisation’. Any three points.
✓

Answer

Delegation of authority means entrusting responsibility and authority and creating accountability of the person to whom the responsibility has been given.Difference between delegation and decentralisation:
Basis
Delegation
Decentralisation
Scope
It is confined to a manager and his immediate subordinates in a work unit.
It involves systematic delegation of authority at all levels and in all functions of the organisation.
Significance
It is required as a routine act of managing.
Vital decision - to prepare the organisation for handling major expansion.
Freedom of action
When a manager delegates authority to his subordinates, he continues to supervise their activities on a regular basis-exercises control over behaviour and performance of subordinates.
In a decentralised organisation, managers of work units have greater freedom of action. Not kept under close supervision by their superiors.
Nature/Essential
Delegation is an essential aspect of organising. An organisation cannot function without delegation.
Decentralisation need not be an essential feature of managing and organising. It is a matter of choice and preference of the top management.

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