Page 5 - Lesson Note 4
P. 5
from one person to to the lowest level in the firm.
another
Decentralization is optional and
Delegation is compulsory
Significan is decided by the top
in every organization at
ce management if it wants or does
every level.
not want it.
Managers of work units have
greater freedom of action. They
Manager exercises control are not kept under close
Freedom
of Action over activities of supervision by their superiors
subordinate but have to work under
guidelines and performance
targets set by top management.
Organization cannot
Essentiali Organization can function
ty function without without decentralization.
delegation of authority
Responsi Responsibility cannot be
bility delegated Responsibility can be delegated.
Grant of Delegated authority can
Cannot be easily withdrawn as
Authority be withdrawn by
delegator. introduced by top management.
