The advantages of decentralisation of industries in india
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Decentralization of authority has certain advantages, such as:
1. Diversification of activities: Decentralization reduces the burden of the chief executives with making routine decisions. They can easily devote the time available for important activities such as diversification of products, raising necessary finance, obtaining licenses and starting new lines of production and solving crucial problems of the business concern, while less important and routine may be left to the middle and supervisory levels.
2. Development of the Managerial Personnel: As the business grows in size, it requires the services of a large number of managers and here decentralization provides a training ground for the would-be managers. The managers learn by experience within the organization concerned.
3. Effective Control and Supervision: Decentralization leads to effective control and supervision. Since concerned managers enjoy full authority to make changes in work assignment, to take disciplinary actions, to change production schedules or to recommend promotions, they are in a position to supervise the subordinates’ activities.
4. Improvement of morale: Decentralization helps improvement of managerial ability which leads to an increase in their morale and this results in a higher productivity.
5. Satisfaction of human needs: Decentralization is an important tool for satisfying human needs of power, independence, status and prestige. This satisfaction helps in building a cadre of satisfied managers, who feel their responsibility towards company’s work.
6. Quick and wise decision possible: Since decision-making authority is as near as possible to the place where action takes place, those having this authority can make reasonably accurate, wiser and timely decisions because they are well aware of the realities of the situation. Decentralization also minimizes the delay in communicating information.
7. Other economies may be achieved through the better utilization of lower and middle management, greater incentive, more and improved training opportunities, insurance that some products will not be pushed at the expense of others.
8. Closer and better employee management and community relations are possible in small administrative units for business as a whole, where decentralization may mean a more widespread distribution of roles and purchases, which may reduce proportionately the unfavorable impact of sales decline.
9. Decentralization may result in an increase in the managerial social net product, i.e., benefits to the community as distinct from benefits to the company. These general benefits may include more freedom of action for individuals, more widespread opportunity for constructive individual participation, less social stratification within the business.
10. Reduces the Burden of Top Executives: It frees the top managers from the burden of taking too many operating decisions. This enables specialization and also permits the top managers to think for the future and make plans accordingly.
1. Diversification of activities: Decentralization reduces the burden of the chief executives with making routine decisions. They can easily devote the time available for important activities such as diversification of products, raising necessary finance, obtaining licenses and starting new lines of production and solving crucial problems of the business concern, while less important and routine may be left to the middle and supervisory levels.
2. Development of the Managerial Personnel: As the business grows in size, it requires the services of a large number of managers and here decentralization provides a training ground for the would-be managers. The managers learn by experience within the organization concerned.
3. Effective Control and Supervision: Decentralization leads to effective control and supervision. Since concerned managers enjoy full authority to make changes in work assignment, to take disciplinary actions, to change production schedules or to recommend promotions, they are in a position to supervise the subordinates’ activities.
4. Improvement of morale: Decentralization helps improvement of managerial ability which leads to an increase in their morale and this results in a higher productivity.
5. Satisfaction of human needs: Decentralization is an important tool for satisfying human needs of power, independence, status and prestige. This satisfaction helps in building a cadre of satisfied managers, who feel their responsibility towards company’s work.
6. Quick and wise decision possible: Since decision-making authority is as near as possible to the place where action takes place, those having this authority can make reasonably accurate, wiser and timely decisions because they are well aware of the realities of the situation. Decentralization also minimizes the delay in communicating information.
7. Other economies may be achieved through the better utilization of lower and middle management, greater incentive, more and improved training opportunities, insurance that some products will not be pushed at the expense of others.
8. Closer and better employee management and community relations are possible in small administrative units for business as a whole, where decentralization may mean a more widespread distribution of roles and purchases, which may reduce proportionately the unfavorable impact of sales decline.
9. Decentralization may result in an increase in the managerial social net product, i.e., benefits to the community as distinct from benefits to the company. These general benefits may include more freedom of action for individuals, more widespread opportunity for constructive individual participation, less social stratification within the business.
10. Reduces the Burden of Top Executives: It frees the top managers from the burden of taking too many operating decisions. This enables specialization and also permits the top managers to think for the future and make plans accordingly.
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The advantages of industries decentralisation in India :-
• openings to a number of occupation
• creation of employment
• remedy to poverty
•Blancing of regional disparity
• Desensitisation of wealth
• openings to a number of occupation
• creation of employment
• remedy to poverty
•Blancing of regional disparity
• Desensitisation of wealth
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