Gujarat BoardEnglish MediumSTD 12 CommerceOCMORGANIZING5 Marks
Question
Describe importance of Decentralization.
✓
Answer
Importance of decentralization:
The idea of decentralization is becoming popular in modern times owing to several advantages it holds.Its importance can be understood through the following points:
$1.$ Quick decisions:
In decentralization, the person who has the power to take the decision is actively involved in his area of decision making. As a result, decisions are taken quickly and effectively.
$2.$ Less work load on top level:
The top level is the level where most of the policy matter related decisions are taken.
By adopting decentralization, the decision making powers are given to middle or lower level. Hence, the work load on upper level is reduced.
$3.$ Increases motivation:
Under decentralization, employees of middle level and lower level are given ^ certain decision making independence.
These employees become more motivated because they get a feeling that their seniors trust them and their decisions.
Moreover, when the decisions become correct, they get more motivated and confident.
$4.$ Increase in management abilities:
Under decentralization, employees of middle level and lower level are given certain decision making independence.
Hence, these employees become efficient leaders. They develop skills to work in coordination.
They develop good administrative skills and they learn the methods of controlling the staff.
Ail this improves management abilities of these employees and the company produces managers for the future.
$5.$ Effective control:
Under decentralization, the managers of all the levels have enough power to manage, make decisions and control their respective areas.
As a result, they can exercise control over the employees, can take decisions if employees makes mistakes and can take disciplinary actions. This makes management easy and controlling effective.
$6.$ Harmony is created:
Due to decentralization, employees of all levels are included in the decision making process and hence are given importance.
All the levels of officers and employees i.e. the decision makers and the followers discuss business matters and then take proper decisions.
This increases interaction among people, feeling of onenesls and harmony.
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