Question

What Is Decentralisation and Its Importance?

Answer 1

Decentralisation refers to the transferring of responsibilities to the middle and lower management by the top management in an organisation.

Importance of decentralisation are as follows:

1. It allows the lower management to be more actively involved in the business, which ensures growth of the business as well as personal growth.
2. Delegation of authority to lower level managers provides them with confidence to perform a task.
3. It helps the managers in developing new skills that will help in dealing with new challenges.
4. It provides an opportunity for evaluation of the performance of an organisation.
5. There will be quick decision making as the lower level managers do not have to follow hierarchy while making decisions.

Also read:

• What Is Decentralisation
• Types of Organisation Structure

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