Answer: Some important factors determining decentralization are:
- The size and complexity of the organization.
- Dispersal of operations.
- Degree of diversification.
- Availability of competent personnel.
- The outlook of the top management.
- Nature of functions of the organization.
- Communication system.
- Planning and control procedures.
Which factors affect degree of Centralisation and Decentralisation?
Factors affecting centralisation and decentralisation • History and Nature of the Organisation:- Centralisation or decentralization of authority depends on the manner, in which the organisation has built up over time i.e., history of the organisation.
What factors affect centralization of work in organizations?
Factors Determining Centralization of Authority:
- Achieving Uniformity of Action:
- Facilitating Integration:
- Promoting Personal Leadership:
- Handling Emergencies:
- Standardization of Procedures and Systems:
- Facilitates Evaluation:
- Economies:
- Co-ordination of Activities:
What is importance of decentralization?
The process of decentralisation makes the lower level managers question their judgement and abilities. When given responsibility and decision- making freedom, they are challenged to develop solutions. In the long run, this does a world of good to their confidence and promotes self-reliance.
What is the degree of centralization?
Centralization is the degree to which formal authority is concentrated in one area or level of the organization. In a highly centralized structure, top management makes most of the key decisions in the organization, with very little input from lower-level employees.
Is there such thing as an absolute decentralization?
On the other hand, there cannot be absolute decentralization, for if managers should delegate all their authority, their status as managers would cease, their position would be eliminated, and there would, again, be no organization. Centralization and decentralization are therefore tendencies; they are qualities like “hot” and “cold”.
How is the degree of centralization and decentralization determined?
Centralization and decentralization are two extremes. Any of these cannot be exclusively adopted by any organization. In any organization there is a lesser or greater degree of decentralization. The degree of decentralization is determined by a large number of factors and some of them are briefed below: 1. Size and Complexity of the organization 2.
Which is the best description of a decentralized organization?
Most organizations fall somewhere between these two extremes. Decentralization is a fundamental aspect of delegations to the extent that authority is not delegated, it is centralized. Absolute centralization in one person is conceivable. But it implies no subordinate managers and therefore no structured organization.
When is authority is dispersed, decentralization is present?
‘When authority is dispersed decentralization is present.’ – George Terry. In large organizations it is not always possible for all activities to be organized from the centre. Hence, a certain amount of decentralization becomes necessary. Advantages of Decentralization (Importance of Decentralization):
