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What Is Decentralization | Giving You Information About It

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Decentralization Meaning

What Is Decentralization | Giving You Information About It: Hey guys, today I am sharing some useful information about decentralization. This article tells you its importance, advantages and disadvantages.

What Is Decentralization | Giving You Information About It

Decentralization Meaning

Which Is Decentralization?

All that increases the importance of the role of the subordinate is called decentralization.

Office decentralization refers to the scattering of the services and activities of offices. When official activities are carried out at the departmental, functional level, decentralization of office services is necessary.

Decentralization occurs during routine decisions, but the authority is not decentralized if decisions are vital.

The degree of decentralization also affects technological development, political factors and managers’ availability. In its pure sense, decentralization is not available.

Decentralization Are:

  • Relieves the highest management of some decision-making burden.
  • Gives managers greater decision-making freedom and independence.
  • Promotes general managers’ development.
  • Encourages the exercise of responsibility and authority.
  • It makes it possible for comparing the performance of various organizational units.
  • Enables diversification of products.
  • Hence aids are adapting to an environment that changes rapidly.

Signification

Reduces The Burden Of Senior Management

Decentralization relieves senior managers from operational details and routine work to focus on more important policymaking, coordination and control functions.

Faster And Better Choices

Decentralization makes decisions faster and more exact because those who have full knowledge of the situation take decisions. Decisions can be taken near the point of action without consulting senior managers or waiting for the endorsement of top managers.

Diversification And Growth

Decentralization encourages product and market growth and diversification. Therefore each product line treat as a separate product line under devolution to quickly meet the evolving demands of its particular market.

Advantages

Decentralization has the major advantages:

  • Top management can focus on significant issues such as a global strategy by delegating problems to lower-level managers daily.
  • Hence the decision-making authority gives to those who tend to have more detail and up-to-date information on the day‐to-day operation by empowering lower-level managers to make decisions.
  • Therefore by eliminating decision-making and approval levels, and the operating environment changes more quickly.
  • Granting decision-making authority helps to train senior managers for senior positions.
  • Hence enabling managers at a lower level to decide can increase their motivation and job satisfaction.

Disadvantages

  • Lower management take decisions unless the broad picture is fully understand.
  • Coordination may be lacking if managers of lower levels make their own choices.
  • Lower management can have targets that conflict with the goals of the organization as a whole.
  • For instance, managers may want to increase the size of their departments and thus increase their strength and prestige than they want to increase the effectiveness of their departments.
  • Hence in a decentralized organization, spreading innovative ideas can be difficult. Someone in one area of the organization may have an excellent idea that would help other parties in the organization.
  • Still, the idea cannot share and adopt in other parts without a strong central direction.
  • The efficient use of intranet systems, which makes it easier to share information throughout departments, can reduce this problem.

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