Question

Explain the following points of importance of decentralisation :
(i) Quick decision making
(ii) Develops initiative among subordinates
(iii) Relief to top management

Hint:

Decentralisation = "Empowerment." It tells subordinates: "I trust you to handle this without asking me every five minutes."

Answer 1

Step 1: Understanding the Concept:
Decentralisation refers to the systematic delegation of authority to the lowest levels of the hierarchy. It is a philosophy that implies "selective dispersal of authority."
Step 2: Detailed Explanation:
1. Quick Decision Making: In a decentralized organization, decisions are taken at levels which are nearest to the points of action. Since there is no need to wait for approval from higher-ups for every small task, the process becomes much faster.
2. Develops Initiative Among Subordinates: Decentralisation helps to promote self-reliance and confidence amongst the subordinates. When lower-level managers are given the freedom to take decisions, they learn to depend on their own judgment and take initiative.
3. Relief to Top Management: By delegating routine and operational decision-making to lower levels, top-level managers are left with more time to focus on strategic issues, long-term planning, and policy-making.
Step 3: Final Answer:
Decentralisation is important because it speeds up operations, empowers employees to think for themselves, and allows senior leaders to focus on the "big picture."