As a philosophy, decentralization of authority promotes dispersal of decisions making power to the top level of the organization. This philosophy focuses that the top management should keep minimum authority and should delegate maximum authority of subordinate managers. The need and important of decentralization of authority can be explained as follows.
1) Relief to top executives.
Decentralization helps to redact the work of top level managers. They can devote greater time and effort to strategic matters by decentralizing of authority for routine decisions.
2) Quicker and ratter decisions
Decentralization leads to quicker and better decision making as the authority to make decisions are placed in the hands of those who are responsible for executing decisions. The subordinate managers can take very practical and quality decisions as they are well aware of the realities of the situation.
3) Development of managers
Decentralization philosophy encourage manageress to make decisions and exercise their own judgment. They learn the art of exercising decision making authority. This develops managerial competency.
4) Higher motivation
Decentralization helps to improve the job satisfaction and morals of lowers level managers by fulfilling their needs for recognition, participation, status and autonomy. It also fosters team-spirit and feeling of cooperation among the subordinates.
5) Growth and diversification
Decentralization of authority facilitated growth and diversification of organizational activities. It helps to develop and introduce and creativity, it increase both productivity and profitability.
6) Effective supervision and control
Decentralization also loads to effective supervision and control. Managers at lower levels have adequate authority to make changes in work assignment, to change production schedules, to recommend supervision and to take disciplinary action. Thus, more effective supervision can be exercised. Control can also be made effective by evaluating the performance of each Decentralization units in the light of predetermined standards.
2 comments:
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