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Meaning And Definition of Decentralization | Nature and Elements of Decentralization


What is meant by Decentralization ?


Decentralization refers to bringing the authority of decision making to the lower level of the organization. Decentralization is a detailed form of transfer of authority, when a higher authority assigns a greater portion of authority to its subordinates, it is called decentralization.


Meaning of Decentralization 


When decision-making is systematically delegated to lower levels of management or to people working below them, it is called decentralization.

Decentralisation is the result and development of delegation. The ultimate objective of delegation is to set up independent and autonomous units in the organisation structure. These units have separate and complete ownership of decision making. In general, decentralization refers to "details of decision - making authority" at the level of the entire organisation. It refers to the scope of the delegated authority at the lower levels of the organisation.


Decentralization has been attributed to several factors. Some consider decentralization by geographical dispersal of functions, while others consider as 'entitlement'. Some people consider decentralization as a process of sectional.


Definitions of Decentralization 


Some of the leading scholars have defined decentralization as follows:

According to MacFarlane, "Decentralisation of power represents the extent to which efficient management is permitted for the decision of an organization at the lower levels."

According to Keith Davis, "The distribution of power and responsibility is called decentralization to the smallest unit of the organization, as far as practicable."

In the words of Henry fayol, "Every act which increases the importance of subordinate's role is called decentralization, which reduces the importance of his role."


According to Allen, "the whole being, except for the one which can be used at the central level, is decentralized by a systematic attempt of delegation to the lowest levels."

According to Messi, decentralization refers to the process of taking decision into the form of an organisation concept to the lowest level of the organisation. Change your routine

According to magison, "Decentralization is a comprehensive concept that represents the extent to which authority is extended by higher management to lower levels, branches or low - level organizational units.


Simple definition, "Decentralization is an organization structure in which the various organizational units are often made permanent distribution of administrative authority by high managers for their independent action decisions." thus, it represents the structure of the units (sections, branches, departments, sections, etc.) of the lower levels of independent, autonomous and total means in the organisation.


Nature and Elements of Decentralization 


The nature of decentralization can be clearly understood by the following elements :-

1) Decentralization is a fundamental aspect of power. This is an extension of delegation.

2) Decentralization is an organization structure. It results in the wider distribution of power at every level in an entire organization.

3) It is a developed form of delegation. According to the batch, "This is the structure arising out of delegation.

4) It is the delegation of powers systematically, consistently and consistently at the levels of performance.


5) It is an attempt to take decision making power to the lowest level of the organisation. It is an orderly pattern of decision - making of the smallest units of the organisation.

6) Decentralisation is not absolute but relative consideration. It is cold and warm - like in nature. These are the two extreme points between which a continuum of existence details exists.

7) Decentralization makes the role of the subordinates significant. It is a statement of administrative authority through delegation into subordinates.


8) Decentralization refers to the attitude and degree of being of managers towards the spread and distribution of existence, not the type of power.

9) Each organization is both centered and decentralized. Absolute decentralization is not possible in any organization because it means no control over the organisation which is not possible.

10) In case of Decentralization, maximum decisions are taken on the lower levels of the organisation which are of vital importance. They have a profound effect on the whole organization. It lays emphasis on bringing down the decisions to the 'centre of action'.


11) Decentralization as a concept is not confined to business organizations alone. Each organisation requires only decentralization in a fit manner to adjust with the external environment demands, coordinate the functions in a formal frame, perform specific tasks and manage the characteristics and capabilities of its members.

12) Decentralization is a philosophy because according to it, higher managers believe that employees at every level of the organisation have the ability and willingness to do first and accept responsibilities.

13) Decentralization is a tool for motivating and recognizing employees, awakening 'sense of being' and fulfilling the need for initiative and independence.


14) It is a different idea in the spread of physical activities and facilities or in delegation or partying.

15) In case of decentralization, higher management is a daily assessment of the decisions of its subordinate managers. Or do not control. He believes that decisions must have been taken well.

16) Decentralization of power can have spread in both vertical and sectential form.


17) Decentralization is a technique to structure autonomous units whose functions are decentralized and have a centralised right of policy formulation and control.

Objectives of Decentralization 


1. Reduction in work load at the top level- Decisions are taken at the proper management top level. When the organization expands, the work at the top level increases further, so the work load is decentralized to work, it reduces the work load of the top executives. Will happen and they can take good decision for very important work.

2. To get the democratic system fair- Due to decentralization, the spread of rights becomes to a small level, due to which all the benefits of the democratic system are received by all classes.


3. For quick execution of tasks- If the officials of higher officials are reduced, then it is necessary to have rights at each level to move forward in the competition with this, they can dispose of their tasks properly. With this the works can be completed quickly.

4. All-round development- Decentralization gives authority to all the lower level officers at the top level, they get full opportunity for their development, in which full work capacity can be executed, decentralization is also necessary for the all-round development of the organization. .


5. Effective control system in large organizations- Decentralization is necessary to maintain effective control system in large organizations, because decentralization is necessary to face competition in large organizations.

Importance of Decentralization 


1. Free from the excessive work load of higher officials- Under decentralization, daily management tasks were handed over to the study staff, as a result of which the top managers have enough time left, which can be used for planning, coordination, policy making, control, etc.

2. Convenience due to various reasons- It is not deny that a person's control survey is best but it also has a limit. The limit refers to the size of the business, that is, as long as the size of the business is small, the high level But by centralizing all the officers, the business can be run efficiently, but when the amount of goods to be produced becomes more, then it cannot run less than the central control because many people cannot pay enough attention to the problems of all the goods.


3. Development of Management - Decentralization means that even the lowest level of managers have the authority to take decisions regarding their work, in this way the knowledge and experience of managers of all levels increases by getting necessary to take decisions and thus It is said that the system serves as a training ground.

4. Law in the morale of the employees - Due to decentralization, the participation of the employees in the management increases, due to this their identity is created in the organization. He is not afraid to make big sacrifices for the success of the unit.


5. Quick and best decision - Due to the increase in Bhojpuri individuals instead of Bhojpuri individuals, the decisions of all the management are taken from the decision and they are also the best. All individuals have to have full knowledge of the problems of their unit or department and For this reason, they are able to take the best decisions.

6. Effective Control- Due to decentralization officers are limited in their work, their mistakes can be caught quickly and they can be held accountable. Due to fear of responsibility, the management has been more concerned about its unit success and as a result He has full control over all the actions.


Benefits of Decentralization 


1. Reduced workload of higher officials - With the help of decentralization, there is a lot of reduction in the workload of higher officials, they can devote their full attention to important tasks, they do not have to get confused in small tasks, due to which business equipment is available to higher officials. The ability, efficiency and they can take advantage of the officer of the center.

2. Facility of diversification - In decentralization there should be adequate facility of diversification as different heads can be appointed for different activities.

3. Development of informal relations - 

Informal relations develop through decentralization.


4. Induction – Through decentralization, the employees have the right to take decisions independently.

5. Source of attainment of qualified managers - Through decentralization, the weight of independent decision is obtained and qualified managers are able to take the right decisions, in this way through decentralization, qualified management is achieved.


6. Convenience in decision making - But the country is the closest or the officer is given the right to give a decision so that it can take a quick decision.

7. Morale being high - With decentralization, the nearest officer is made responsible for working from a certain area, he does not need to get instructions from higher officials again and again for his work, which makes his morale high.


Limitations of Decentralization 


While decentralization is important for effective management, it is not the solution to all the weaknesses of an organization. These types of problems arise in this.

1. Problem of coordination

In a large organization, it becomes very difficult to establish uniformity and harmony in the work of different units. The coincidence arises from the mutual competition of these units. And it is difficult to control . The possibility of duplication in tasks increases.

2. Increase in administrative cost 


Decentralization increases the operational expenditure in various departments and sub-departments. This has a bad effect on the profit of the organization. So decentralization is not more suitable for small organizations.

3. Inability of subordinates-

Decentralization is possible only when the lower level officers are qualified and skilled, otherwise the organization may have to bear huge losses.

4. Unsuitability 


Centralization is not suitable in organizations where one person's central direction and control is necessary. Similarly, decentralization is not beneficial in those works which are not possible to be divided into smaller units.

5. Decentralization can lead to problems in case of emergency or crisis. In bargaining with trade unions, etc., the authority has to be limited to the top managers.

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