Decentralisation
in relation to office denotes disperse of office services and activities. The
necessity of decentralisation of office services occurs when official
activities are performed at functional departmental level. Thus,
decentralisation in relation to office may include departmentation of
activities. When authority is dispersed, decentralisation is present.
The need for
decentralisation is felt when the business grows in its size which necessiates
diversification of office activities. Decentralisation occurs at the time of
decisions of routine nature but if decisions are vital, the authority is not
decentralised. The technological development, political factors, availability of
managers also affects the degree of decentralisation. Decentralisation does not
exist in its pure sense. There is a mixture of the two because some activities
are centralised and some are decentralised. Advantages of Decentralisation
Advantages of Decentralisation:
1.
Distribution of burden of top executive—Decentralisation enables to its
executive to share his burden with others at lower levels because here
authority is delegated. The top executive is relieved of some burden and
concentrates his activities to think for the future of the organisation.
2. Increased
motivation and morale — The morality of the employees are increased because of
delegation of authority. Decentralisation helps to increase employees morale
because it involves delegation. The employees are motivated to work.
3.
Greater efficiency and output—Decentralisation gives emphasis on care, caution
and enthusiastic approach to
the work which in turn results in increased efficiency and output. This is
possible because it involves delegation of authority and responsibility.
4.
Diversification of Activities—Decentralisation helps in diversification of
activities. It crests more employment opportunities because new managers are to
be entrusted with new assignments.
5. Better
Co-ordination—The various operations and activities are co-ordinated in a
decentralised set up.
6.
Maintenance of Secrecy — Decentralisation enables to maintain secrecy without
much cost and unnecessary trouble.
7. Facilitate
effective control and quick decision-Decentralisation enables to measure the
work according to standard easily and quickly. This facilitate taking up quick
decision.
Disadvantages of Decentralisation:
A
decentralised organisation suffers from the following disadvantages:
1. More
cost—Decentralisation is costly because it encourages duplication of functions
and equipments. As it is costly, it cannot be adopted by small organisations.
2. No
specialisation — Specialisation suffers in decentralisation because everyone
becomes jack-of-all-trades but master of none. So specialisation is affected.
3. Need more
specialists-In decentralisation more specialists are needed. The services of
specialists are not utilised effectively and efficiently, as they are large in
numbers.
4. No uniform
action — It becomes difficult to maintain uniformity in action because routine
and methods differ from organisation to organisation and department to
department.
5. No equitable distribution of work — It becomes difficult to
distribute workload equitably among different employees.
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