In an organisation, there are various kinds of the people who are in fact working at the various places or the hierarchies as per the need and the requirement of the organisation from the time to time. The organisation is in fact started by an individual or a group of the individuals with a certain kind of the vision to do some thing and achieve the pre set goals and the objectives. All these initiators come under the top management of an organisation but there are a lot of the works that are needed to be done and all can not be done by the top management and for this the people are hired who are in the general terms called as the employees and these are the people to whom the various kinds of the works are delegated to do in the place of the top management of the organisation. So in the very simple terms, the term Delegation is referred to as the distribution of the various kinds of the work to the various staff members of an organisation as per the calibre and the experience of the staff members and also depending a lot on the needs of the organisation from the time to time.

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Sometimes the terms delegation and decentralization are used interchangeably but they are not the same. Even if in both the cases, dispersal of authority is involved, but decentralization can be described as the extension of delegation. The major points of difference between the two can be described as follows.

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There are different implications of the terms centralization and decentralization. In context of management, these terms refer to the presence of the decision-making authority in a particular organization. In order to find out if a particular organization is centralized or decentralized, it is necessary to find the decision-making power. If the power to make the decisions lies with the person at the top of the organization, the organization can be described as a case of centralization. But if the power to take the decisions has been divided among different persons in the organization, it will be a case of decentralization. The role played by the subordinates is also connected with the level of delegation of authority. Hence, if the subordinates have to implement whatever orders have been given to them, it can be described as the centralization of authority. In such a case, all the decisions are taken by the top level management and no authority is available to the subordinates to change or amend these decisions. As compared to this situation, in case of decentralization, the subordinates were more power, and they also have a significant role in the process of decision-making.

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Some of the advantages of decentralization can be described as follows:-

1. Quick decisions: In case of a decentralized system, the decision-making powers are delegated at the level of actual execution. Therefore, when the need arises to take a decision, the particular executive can decide immediately. Such executive is not required to make a reference to the top-level management for most of the decisions. Therefore it returns the process of taking decisions.

2. Reduces the burden of top management: In a centralized system of authority, the top-level executives are overburdened. Therefore they do not have any time to involve in activities like planning etc. On the other hand in case of decentralized decision-making, the power is delegated to the lower level of management, which relieves the top executives from some of the burden. In case of decentralized system, the top executives only deal with the work that needs their personal attention and every other word is assigned to the persons at the appropriate level. This significantly reduces the burden of the top-level executives and they can effectively deal with their other responsibilities like planning etc.

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The advantages of centralization can be described as follows: –

1. Facilitates Evaluation: In cases where the same policies are used for all the parts of the organization, it becomes easy to evaluate their performance. Such a situation also helps in comparing the results of various departments of the organization. This situation also helps in achieving his sense of competition between different departments. The ultimate result is in the form of an improvement in overall performance.

2. Centralization of procedures and systems: Centralization also allows the centralization of procedures and systems. It facilitates smooth working of various departments. Similarly, a consistency can be achieved in the day-to-day workings of the organization. Consumer services also experience and improvement when standard policies are implemented.

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