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Decentralisation (Meaning (indeed a philosophy, (a tool, (a technique…
Decentralisation
Meaning
indeed a philosophy,
a tool,
a technique
management.
Means wide
distribution authority
through out
organisation manager
different levels
adequate & requisite
authority make
job related decisions.
Decentralisation case
where power take
decisions,
formulate policies
does not lie
single hand
passed different
persons at
various levels.
Definition.
"refers to
systematic effort
delegate to
lowest levels
all authority
except which
can only be
exercised at
central points.
Importance
(i) Reduces Burden of Top Executives.
relieves top executives
from burden
doing routine
work.
Centralisation
overburdens authority
top executives
which diminishes
time to
concentrate on
important tasks.
So decentralisation
lessens burden
by delegating
decision making
power to subordinates.
(ii) Quick Decisions
In Decentralisation
whenever need
taking decisions,
concerned executive
decide
things immediately.
need not
to consult
top management
everytime
save time.
(iii) Motivates the Subordinates.
Subordinates
feel motivated
when involved
goal setting
& decision making process.
Under decentralisation,
opportunity given
subordinates to
take independent
decisions
gives job satisfaction.
(iv) Division of Risk
Under decentalised
system,
management can
experiment & test new
& innovative ideas
one department
without distrubuting
other departments.
So limited
risk in
system.
Information
(v) Facilitates Diversification
Because Growth
& Diversification business
need of delegating
authority at
department levels
Decentralised system
provides requisite
authority at
various levels
to carry out
absolute task.
(vi) Provide Product Or Market Emphasis
Since authority
given to each
autonomous unit,
more product
emphasis.
Decentralised
management more
responsive to
changing tastes&
& Preferences
of custom.