Question

What is decentralisation?​

Answer 1

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Decentralization or decentralisation  is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.

$\blue{\bold{\underline{\underline{Importance\:of\:decentralisation:-}}}}$

The process of decentralisation makes the lower level managers question their judgement and abilities. When given responsibility and decision- making freedom, they are challenged to develop solutions. In the long run, this does a world of good to their confidence and promotes self-reliance.

Answer 2

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• Decentralisation refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central point.

Advantages / Importance of Decentralization

• It helps to improve the quality of decisions
• It encourages development of managerial personnel
• It makes decision-making quicker and better
• It provides opportunity to learn by doing