DECENTRALISATION OF AUTHORITY - February 20, 2010
The concept of decentralization is very important for large organizations. Decentralization is the process of pushing authority and decision making to lower level of the organization. Centralization refers to the concentration of authority and decision making in one single position in the e organization. If authority is not delegated and it concentrates on one person, there are no subordinate managers and it shows that there is no organizational structure. It is knows as a complete centralization. Some degree of decentralization exits in all organizations.
If managers delegate all their authority to subordinates, their position will be eliminated. It is known as a complete decentralization. The main purpose of decentralization is to ease the burden of top executives. Decentralization is not universally good. It may be successful for one firm and may not be successful for others. If quick decisions are to be taken very often in an organization, decentralization of decision may be desirable.