Question
Define and explain the concept of decentralization.

Answer

Decentralization:
The delegation of power from upper to lower level in orderly manner is known as decentralization of power.
  • According to Henri Fayol, “To assign powers to the superiors, to enable distribution of work, and to include in decision making process is called decentralization.”
  • Whether to opt for centralization or decentralization largely depends of the size of the unit and the approach of the administrators.
  • Small sized organization can have centralized powers but generally large sized organizations should have decentralized form of management for successful organizing.
  • Under decentralization not all but some major powers such as executive powers are given by the upper level administrators to the lower level.

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