Decentralisation

DECENTRALISATION:

Decentralization:-delegating authority at all management levels and all departments of the organization to take decisions and appropriate action on tasks assigned to them within their powers.

Centralization:-Decision-making authority is retained by higher management levels

 Difference between delegation and decentralization

Importance of decentralization

1. Decision making becomes fast
   • Decisions are taken to the nearest points of action and there is no requirement for approval from many levels
   • Information sent is cleared because it doesn’t have to go through long channels
2. Relief to top management
   • Reduces direct supervision by a superior
   • Top management can concentrate on major policy decisions instead to day to day work
3. Enhance initiative among subordinates
   • Promotes confidence among the subordinates due to freedom to make their own decisions
   • Brings more creativity and new ideas to the organization.
4. Assist in growth
   • Awards greater independence to divisional or departmental heads.
   • This allows them to develop team spirit and a sense of competition amongst the departments.
5. Managerial talent for the future develops
   • Gives employees a chance to prove their abilities in their own working
   • Helps to develop multi-skills talents due to greater autonomy
6. Smooth control
   • Decentralization evaluates performance at each level and can be accountable for their results.
   • Organization goals can be effectively achieved