"Delegation is necessary in every organisation, but decentralisation is not." Explain.

Dear Nitesh,

Delegation is necessary in order to organise and manage an organisation.Delegation implies transfer of authority, from a superior to his subordinate. It is an essential concept for effective organisation as it lowers the burden on the manager and thereby, facilitates the manager to focus on activities that command high priority. Also, the managers can extend his area of operations once he delegates the work to subordinates. In addition to this, it provides the subordinates with more opportunities for growth. It helps in efficient completion of tasks as the subordinates can now show their skills and exercise initiative.

Whereas, decentralisation refers to the dispersal of the decision making power among the middle and lower level managers. An organisation may choose to be centralised or decentralised depending on the objectives and the decisions of the top level managers. It is mostly required if the organisation wants to expand and wants to tackle various changes in the business environment. It is not an essential feature as an organisation can operate with less or no decentralisation. It totally depends on the preference of the top management. 

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