Decentralisation

Decentralisation is much more than delegationDecentralisation refers to the systematic effort to delegate to the lowest levels of authority except that which can only be exercised at central points. Decentralisation is much more than delegation Delegation means transfer of authority from one individual to another. But decentralisation implies diffusion of authority throughout the organisation.

Advantages of Decentralisation

1. Motivation of subordinates

Decentralisation helps to improve the job satisfaction and morale of lower level manager by satisfying their needs for independence participation and status. It also fosters team spirit and group cohesiveness among the subordinates.

2. Effective communication

Under decentralisation the span of management is wider and there are fewer levels of organisation. Therefore communication system becomes more effective. Intimate relationships between superior and subordinates can be developed.

3. Executive development

When authority is decentralised subordinates get the opportunity of exercising their own judgement.They learn how to decide and develop managerial skills. As a result the problem in succession is overcome and the continuity and growth of organisation are ensured. There is better utilisation of lower level executives.