degree of decentralisation indicates
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Degree of Decentralization indicates the extent to which an organization wants to decentralize depends upon the degree of decentralization. ... Managers cannot be ordinarily for or against decentralization of authority. They may prefer to delegate authority, or they may like to make all decision
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Answer: Here is the full question that you are looking for-
Degree of decentralisation indicates-
(a) degree of authority delegation
(b) degree of responsibility.
(c) degree of power delegation.
(d) degree of accountability.
Option (a) degree of authority delegation is the correct answer.
What are the factors of Degree of decentralisation?
Degree of Decentralization explains that the degree of decentralisation determines how far an organisation intends to decentralise.
- The costliness of the Decision=Like in other areas of policy, the costliness criterion may be the primary factor determining the degree of decentralisation.Generally speaking, the more expensive the proposed course of action, the more likely it is that the decision will be made at the highest echelons of management.The notion that top managers make fewer mistakes than subordinates is not always the basis for the observation that the cost of a mistake impacts decentralisation.
- Uniformity of policy=The desire to have a uniform policy is another, and partly related, element that favours the centralization of authority. People who prioritise consistency are almost always in favour of centralised authority because it is the quickest way to achieve that goal.They might want to guarantee that clients would receive the same treatment in terms of quality, pricing, credit, delivery, and service; that suppliers will be dealt with according to the same procedures; or that public relations policies will be uniform. Additionally, uniform policy offers some internal benefits.
- Size=It is more challenging to coordinate decisions in larger organisations since there are more decisions to be made and areas where they must be made.Because of the organisational complexity, it may be required to convey policy problems up the chain of command and review them with numerous managers along the way as well as numerous managers at each level, since horizontal agreement may be just as important as vertical clearance.
- History of the enterprise=Depending on how the organisation has been designed or set up, authority may be regularly decentralised.However, businesses that reflect mergers and consolidations are more likely to initially have a clear desire to maintain decentralised control, particularly if the unit that was bought is profitable. Undoubtedly, this propensity to not upset the apple cart may have more political motivations than it does administrative ones.
- Management philosophy=The leadership style and ideology of senior executives have a significant impact on how dispersed authority is.Top managers are occasionally autocratic, tolerating no interference with the power and knowledge they zealously guard.
- Desire for independence=Individuals and groups both have the yearning for some kind of independence.Long communication chains, slow decision-making processes, and the great game of "passing the buck" can all irritate people.
- Availability of managers=The degree of decentralisation of power would be constrained by a genuine lack of managerial personnel, as delegation of decision-making is predicated on the availability of managers with the necessary skills.
- Control techniques=The stage of development of control techniques also has an impact on the degree of decentralisation.At any level of the company, a good manager cannot be expected to assign authority without some assurance that it will be utilised appropriately. The manager's stage of growth must be taken into consideration along with the necessity to comprehend and apply proper control approaches.
- Decentralized performance=This is mostly a technical issue that depends on the economics of labour division, the availability of equipment, and the nature of the task to be done.
- The pace of change=The degree to which authority may be delegated depends on how quickly a company moves.Managers, especially those in charge of top policy, may be required to make a significant portion of the decision if a corporation is expanding quickly and dealing with complicated difficulties.Strangely enough, though, this highly dynamic situation may force these managers to transfer power and weigh the consequences of error against other risks.
- Environmental influences=Although the economics of performance decentralisation and the nature of change entail elements well outside the control of a business's manager, the factors affecting the level of decentralisation outlined above have primarily been internal to the enterprise.Additionally, there are clear external factors that have an impact on the degree of decentralisation. Governmental regulations, national unionism, and tax laws are some of the most crucial ones.
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