Describe the weakness of decentralisation
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Decentralisation 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.
Some disadvantages of decentralisation are:
1. Uniform policies not Followed:
Under decentralisation, it is not possible* to follow uniform policies and standardised procedures. Each manager will work and frame policies according to his talent.
2. Problem of Co-Ordination:
Decentralisation of authority creates problems of co-ordination as authority lies dispersed widely throughout the organisation.
3. More Financial Burden:
Decentralisation requires the employment of trained personnel to accept authority, it involves more financial burden and a small enterprise cannot afford to appoint experts in various fields.
4. Require Qualified Personnel:
Decentralisation becomes useless when there are no qualified and competent personnel.
5. Conflict:
Decentralisation puts more pressure on divisional heads to realize profits at any cost. Often in meeting their new profit plans, bring conflicts among managers.
Some disadvantages of decentralisation are:
1. Uniform policies not Followed:
Under decentralisation, it is not possible* to follow uniform policies and standardised procedures. Each manager will work and frame policies according to his talent.
2. Problem of Co-Ordination:
Decentralisation of authority creates problems of co-ordination as authority lies dispersed widely throughout the organisation.
3. More Financial Burden:
Decentralisation requires the employment of trained personnel to accept authority, it involves more financial burden and a small enterprise cannot afford to appoint experts in various fields.
4. Require Qualified Personnel:
Decentralisation becomes useless when there are no qualified and competent personnel.
5. Conflict:
Decentralisation puts more pressure on divisional heads to realize profits at any cost. Often in meeting their new profit plans, bring conflicts among managers.
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