Question

Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.

Answer 1

SOLUTION :  

No doubt, Decentralisation is an optional policy but as  the size of organisation grows , it become necessary to the decentralise the authority level. An organisation would choose to be decentralised because of the following points :  

 

(i) DEVELOPS INITIATIVE AMONG EMPLOYEES :  

In decentralisation, all the manager shares decision making powers with the subordinates ,all are given some kind of autonomy and freedom of action. This sharing of decision and freedom of action makes them confident to take initiative in the interest of the organisation.

 

(ii) QUICK DECISION MAKING :  

In decentralisation process, decision making is not restricted in few hands only but decision making power is entrusted to all the managers who take actions or show performance in the activities. This leads to faster decision because employees who have to perform the activities are allowed to take decision also.

 

(iii) FACILITATES GROWTH :  

Decentralisation not only empowers the employee at the different level but the departments and division also. Different department and divisions word in the competition to one another. In this process, they try to the best for their departments and divisions and overall growth is achieved.

 

(iv) BETTER CONTROL :  

Different individuals working at the different levels as supervisors, departmental heads, divisional heads are given autonomy to function with parity of authority and responsibility, it becomes easy to make them accountable for the under performance.

HOPE THIS ANSWER WILL HELP YOU…

Answer 2

Answer:

Explain why an organisation would choose to be decentralized. Answer: Decentralisation is much more than mere transfer of authority to the lower levels of management hierarchy. ... A decentralized policy helps to identify those executives, who have the necessary potential to become dynamic leaders.