Course Content
Cultural and Social heritage and dilemma in the rural development
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Learn Social mobilization and community development with Rahul

Importance of decentralization

  • Helps to improve the quality of decisions at the top-level management.
  • Facilitates diversification of activities.
  • Encourages development of managerial personnel.
  • Improves motivation within organization
  • Makes decision-making quicker and better.
  • Provides opportunity to learn by doing.

 

Limitations of decentralization

  • May lead to problem of co-ordination at the level of an enterprise as the decision-making authority is not concentrated.
  • May lead to inconsistencies at the organizational level.
  • Costly as it raises administrative expenses on account of requirement of trained personnel to accept authority at lower levels.
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