Delegation of authority refers to granting authority by one individual (superior) to another (subordinate). Therefore, its scope is confined to a manager and his immediate subordinate. When we delegate authority, we multiply it by two i.e. the delegator and his subordinate, to whom authority is delegated. Delegation is a process of sharing of task and authority between a manager and his subordinate.
Decentralisation of authority is not restricted to two individuals. It involves systematic delegation of individuals. It involves systematic delegation of authority at all levels and in all functions of the organisation. In case of decentralisation, managers at middle and lower levels are granted the authority for taking decisions on tasks assigned to them. Therefore, the scope of decentralisation is wider than that of delegation. When we decentralise authority, we multiply it by many.

Two advantages of formal organisation are:
(i) It is easy to fix responsibility as mutual relationships are clearly defined.
(ii) It provides stability to the enterprise. There are specific rules to guide the behavior of members.
Two limitations of formal organisation are:
(i) It may create rigidity due to prescribed policies and rules.
(ii) Formal lines of communication are to be followed, thus, decisions are delayed.

(i) In this situation, divisional organisation structure will be suitable, as it provides equal importance to all its products.
(ii) Values, which satisfied are:
(a) Company is being sensitive to the needs of working women.
(b) Provides employment.

According to Allen, 'Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing a pattern of relationships for the purpose of enabling people to work most effectively together in accomplishing objectives'.

Delegation refers to the downward transfer of authority from a superior to a subordinate.
Importance of delegation
1.Effective Management 
By empowering the employees, the managers are able to function more efficiently as they get more time to concentrate on important matters.
2. Employee Development
Delegation provides more opportunities to the employees to utilize their talent and develop latent abilities. It helps to make them better leaders and decision makers, thus, creating future managers.
3. Motivation of Employees
Delegation provides a feeling of status and recognition to subordinates, as it is not only a process of sharing the workload, but also involves trust of the superior on his subordinate. Entrustment of responsibility builds up his esteem and encourages him to perform better.
4. Facilitation of Growth
Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. Trained and experienced employees are able to play a significant role in launching new projects of the organisation.
5. Basis of Management Hierarchy
Delegation of authority establishes superior-subordinate relationships, which are the basis of a hierarchy of management. This helps employees to know 'who has to report to whom'. Thus, duties and powers of each individual become clear.
6. Better Coordination
The elements of delegation namely authority, responsibility and accountability help to define the powers, duties, and responsibilities related to various positions in an organisation. This helps to avoid overlapping and duplication of work and facilities coordination, as it gives a clear picture of the work being done at various levels.