What is Decentralization
Decentralization is opposite to centralization where there is no concentration of authority instead diffusion is planned and executed. Decentralization emerges from the principles of delegation. Delegation plays role of a peace-maker in decentralization, without it, might have been a distant possibility. Delegation makes the subordinate feel that he too is important for the organization. His ego is satisfied. He is encouraged to take more and more interest in his job and to maximize his efforts considering this as an important principal of delegation.
Definition of Decentralization
- In the words of Satya Saran Chatterjee “decentralization means pushing down of authority and power of decision making to lower levels of organization”.
- Henry Fayol define that “everything that goes to increase the importance of the subordinate’s role is decentralization” He obviously was referring to division of authority which certainly is the essence of decentralization.
- E.F.L Breech has rightly put it as “the pattern of responsibilities resulting from delegation.”
Objectives of Decentralization
The following are the main objectives which a decentralized system of organization seeks to achieve.
- To relive the burden of work on the chief executive
- To develop the managerial faculties
- To satisfy the ego of lower level of workers and motivate them
- To take quick and appropriate decision on the sport at the level which it is really required with a view of cash on the opportunity available and
- To reduce the communication work and fill the gap in communication, if there has arisen any