Question:
Explain the following point of importance of Decentralisation :
(ii) Relief to top management
Explain the following point of importance of Decentralisation :
(ii) Relief to top management
(ii) Relief to top management
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Decentralisation is necessary for the growth of large, complex firms.
It helps in identifying and developing future managerial talent.
Top management becomes more effective when they focus on "the big picture."
Updated On: Jul 18, 2026
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Solution and Explanation
Concept:
• Management by Exception: Top managers should only handle matters of strategic importance, while routine matters should be delegated.
• Workload Distribution: Spreading the burden of decision-making across the hierarchy.
Step 1: Describe the delegation of routine tasks
Decentralisation leaves the top management with only the most important policy decisions and long-term planning.
Routine operational problems and departmental decisions are handled by middle and lower-level managers.
Step 2: Explain the benefit for the top executive
This significantly reduces the direct supervision and administrative workload of top executives.
They can then devote more time to strategic thinking, diversification, and exploring new growth opportunities.
This results in better overall governance and strategic direction for the entire organization.
• Management by Exception: Top managers should only handle matters of strategic importance, while routine matters should be delegated.
• Workload Distribution: Spreading the burden of decision-making across the hierarchy.
Step 1: Describe the delegation of routine tasks
Decentralisation leaves the top management with only the most important policy decisions and long-term planning.
Routine operational problems and departmental decisions are handled by middle and lower-level managers.
Step 2: Explain the benefit for the top executive
This significantly reduces the direct supervision and administrative workload of top executives.
They can then devote more time to strategic thinking, diversification, and exploring new growth opportunities.
This results in better overall governance and strategic direction for the entire organization.
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