What is the need or importance of decentralisation?
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Decentralisation can be defined as even and systematic distribution of authority at every level of management. Under decentralisation every employee working at different levels gets some share in the authority. Decentralisation is a policy matter and managers plan in advance whether to go for centralised or decentralised policy.
Sometimes company follows a mixed policy of centralisation and decentralisation. They keep the important matters such as financial decisions, structural decisions with the top level management only and share the common decisions with the people working at different levels as generally an organisation can never be completely centralised or decentralised.
Relation between Delegation and Decentralisation:
Decentralisation is extension of delegation. In delegation we multiply the authority with two whereas in decentralisation the authority is multiplied by many because systematic delegation taking place at every level will result in evenly distribution of authority and responsibility at every level and result in decentralisation. If delegation is restricted to certain levels only then there will be no complete decentralisation also.
For example, if the directors give the responsibility to production head to complete the target of 50,000 units per annum and authorise him to hire the required workers, decide their salaries and working conditions. The production head further shares his responsibility and authority with the production manager to achieve the target and select the workers. The production manager shares his authority and responsibility with the supervisors who directly deal with the workers and authorise them to select the workers.
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Sometimes company follows a mixed policy of centralisation and decentralisation. They keep the important matters such as financial decisions, structural decisions with the top level management only and share the common decisions with the people working at different levels as generally an organisation can never be completely centralised or decentralised.
Relation between Delegation and Decentralisation:
Decentralisation is extension of delegation. In delegation we multiply the authority with two whereas in decentralisation the authority is multiplied by many because systematic delegation taking place at every level will result in evenly distribution of authority and responsibility at every level and result in decentralisation. If delegation is restricted to certain levels only then there will be no complete decentralisation also.
For example, if the directors give the responsibility to production head to complete the target of 50,000 units per annum and authorise him to hire the required workers, decide their salaries and working conditions. The production head further shares his responsibility and authority with the production manager to achieve the target and select the workers. The production manager shares his authority and responsibility with the supervisors who directly deal with the workers and authorise them to select the workers.
PLZ MARK BRAINLIEST HOPE IT HELPS U
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the need or importance of decentralisation is as They keep the important matters such as financial decisions, structural decisions with the top level management only and share the common decisions with the people working at different levels as generally an organisation can never be completely centralised or decentralised.
hope it's helpful! !!!!!!
hope it's helpful! !!!!!!
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