Decentralisation

Decentralisation is much more than delegationDecentralisation

refers to the systematic effort to delegate to the lowest levels of
authority except that which can only be exercised at central
points. Decentralisation is much more than delegation Delegation
means transfer of authority from one individual to another. But
decentralisation implies diffusion of authority throughout the
organisation.
Advantages of Decentralisation
1. Motivation of subordinates
Decentralisation helps to improve the job satisfaction and morale
of lower level manager by satisfying their needs for independence
participation and status. It also fosters team spirit and group
cohesiveness among the subordinates.
2. Effective communication
Under decentralisation the span of management is wider and
there are fewer levels of organisation. Therefore communication
system becomes more effective. Intimate relationships between
superior and subordinates can be developed.
3. Executive development
When authority is decentralised subordinates get the opportunity
of exercising their own judgement.They learn how to decide and
develop managerial skills. As a result the problem in succession is
overcome and the continuity and growth of organisation are
ensured. There is better utilisation of lower level executives.