Question
“If we delegate the authority, we multiply it by two, if we decentralise it, we multiply it by many”. How? Give an example.

Answer

Let us assume that a Chief Manager of a company assigns a job/ responsibility to the Production Manager for appointing employees needed for his Division on salary less than ₹ 10,000 then this will be turned as delegation of authority. On the contrary, if this authority for appointing employees is delegated to every departmental head then it will be termed as decentralisation. If, departmental heads further delegate this authority to their deputy managers, it will lead to the expansion of decentralisation. In this context, it can be said that if we delegate the authority, we multiply it by two; if we decentralise it, we multiply it by many.

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