What is decentralisation?What are its advantages?

Decentralisation means diffusion of authority. The dispersal of authority of decision-making to the lower level management is termed as decentralisation. Decentralisation of authority is a fundamental phase of delegation and the extent to which authority is not delegated is called centralisation. 

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.