Advantages and Disadvantages of Decentralisation

Topics: Decision making, Management, Organization Pages: 4 (1227 words) Published: July 26, 2012
Advantages and Disadvantages of Decentralisation

Decentralisation means diffusion of authority. The dispersal of authority of decision- making to the lower level management is termed as decentralisation. Decentralisation of authority is a fundamental phase of delegation and the extent to which authority is not delegated is called centralisation. Here got some advantages and disadvantages of decentralisation.

Firstly, distribution of burden of top executive. Decentralisation helps to its executive to share his burden with others at lower levels because the authority is delegated. Futhermore, decentralisation helps to increase motivation and moral. The morality of the employees are increased because of delegation of authority. Decentralisation also helps to increase employees moral because it involves delegation. Decentralisation got a greater efficiency and also greater output. This is because it gives emphasis on care, caution and enthusiastic approach to the work which in turn results in increased efficiency and output. Moreover, Decentralisation makes a better co- ordination. This is a various operations and activities are will be always co-ordinated in a decentralised set-up. Decentralisation enables to facilitate effective control and make a quick decision. This is enables to measure the work according to standard easily and quickly. This is what called as a quick decision. Decentralisation makes an operational independence easier for the organisation to grow overall. Activities such as franchising, diversification and hiring of employees at the departmental levels do not need constant intervention from the top management. Consequently, expansion becomes easier, raising capital and inducting additional workforce become lesstime consuming. Decentralisation greatly benefits huge organisations spread over several thousand employees and geographic locations. In a decentralisation setup, it becomes easy to spot the weak links that are consistenly affecting...
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