Question

Short Answer Question:
In large organisations why is decentralisation considered essential?

Answer 1

Decentralisation can be defined as even and systematic distribution of authority at every level of management. Under decentralisation every employee working at different levels gets some share in the authority. Decentralization is a policy matter and managers plan in advance whether to go for centralised or decentralized policy. Sometimes company follows a mixed policy of centralisation and decentralisation. They keep the important matters such as financial decisions, structural decisions with the top level management only and share the common decisions with the people working at different levels as generally an organisation can never be completely centralised or decentralised.