Decentralization refers to tire systematic effort to
delegate to the lowest levels all authority except that which can only be
exercised at central points.” —Louis A. Allen
“Decentralization means the division of a
group of functions and activities into relatively autonomous units with overall
authority and responsibility for their operation delegate to timed of cacti
unit.’—Earl. P. Strong
Decentralization is the process by which the
activities of an organization, particularly those regarding planning and
decision-making, are distributed or delegated away from a central,
authoritative location or group.
Advantages of Decentralization
Reduces the burden on top executives:
2. Facilitates diversification:
3. To provide product and market emphasis:
4. Executive Development:
5. It promotes motivation:
6. Better control and supervision:
Disadvantages of Decentralization
Decentralization can be extremely beneficial. But it
can be dangerous unless it is carefully constructed and constantly monitored
for the good of the company as a whole.
1. Uniform policies not Followed:
2. Problem of Co-Ordination:
3. More Financial Burden:
4. Require Qualified Personnel:
5. Conflict:
Comments
Post a Comment