Question

Write to 2 merits and three demarits
of decentralisation of powers.​

Answer 1

Answer:

Advantages of Decentralisation:

i. Decentralization may be, in part, merely the result of circum­stances (Dale). Centralization enables a competent leader to control work and produce results quickly and effectively.

ii. It helps to coordinate work and put all activities on track. There are certain special circumstances forcing managers to reserve authority and centralize decision-making power.

iii. Actions can be focused on what needs to be done and duplications can be put to rest. It becomes easy to get all units and people do the same thing in the same way at the same time without wastage of resources and energies.

Disadvantages of Decentralisation:

Decentralization is not a sure bet. It could prove to be a troublesome exercise if not carried out in a proper way, in the following ways:

1. Conflict:

Decentralization puts increased pressure on divisional heads to realize profits at any cost. This may lead to inter-divisional rivalry leading to bitter fights. Each divisional head might be tempted to build his own empire at the cost of others. Problems of coordination and control may also arise when such ‘mini-companies’ or ‘little empires’ exist within an organisation.

2. Cost:

Decentralization results in a duplication of staff effort. To be in­dependent, each division should have access to purchasing, personnel, marketing and other specialists. As a result each division is expected to carry a large group of staff specialists at enormous cost.

3. Some Disadvantages of Decentralization Relate to the Profit-Centre Concept:

Often capable and competent individuals may not be avail­able to run the divisionalised organizations. Freedom of action may lead to diversity of decisions. Many a time the remote control from headquarters may prove to be ineffective as the enterprise grows. In addition, decentralization demands training programmes that may be time-consuming and highly expensive.

Answer 2

here is ur answer :

advantages of decentralization :

• Relives top management from work load .
• motivate the lower level employees , is it make that job more attractive and interesting .

disadvantages of decentralization :

• hampers uniformity in decision making .
• difficult to top management exercise control .
• increase the administrative due to the duplication of work and appointment of lower level executive .

hope it helps u ✌