Reasons for decentralization

Decentralization refers to the organizational structure that involves the delegation of powers and responsibilities from the top to middle and lower management. Decentralization allows each and every employee of the organization to obtain share in the authority. Decentralization is opposite of centralization, where the authority is concentrated in the hand of the top management only. However, they both are mutually dependent. Decentralization is a natural process in case of a large and complex organization. 

The following are the reasons for the importance of decentralization. 

• Promote initiatives: Decentralization passes the authority to the middle and lower level of the management. This shows that the top level management has faith and trust in the subordinates and this motivates the subordinates to take decisions for the betterment of the organization. 

• Develop managerial talent: Decentralization allows the subordinates to learn the decision making skills. They got an opportunity to perform the tasks that their superior do and gain the experience in managing authority. So, decentralization develops managerial talent among the employees for their future. 

• Quick decision making: In the decentralization, decisions are taken by all the people who are performing their activities and taking action, rather than limiting power in few hands. This lead to quick decision making as the subordinates does not have to consult their superior every time. 

• Reduce burden of top management: The decentralization process provides relief to the top management by reducing their responsibilities and powers. They pass on their powers and responsibilities to the different organizational level that are free to take their own decisions. 

• Promote development: Decentralization transfer power to the middle and lower level of the management who can efficiently perform their task to achieve the desired outcome. When everyone is performing their task effectively, then there will be an increase in the revenue which facilitates development.

• Effective control: Decentralization process allows the individuals to take their own decisions and they are themselves responsible for the decisions taken by them. Thus, the subordinates cannot blame their superiors are the action taken by them, and this leads to better control. 

• Increase creativity: The creativity level depends on the powers that one enjoys. When the subordinates get the autonomy and powers as per their responsibilities, their creative skills increase. They can also come up with the creative ideas to promote growth in their organization. 

• Improve team building skills: Decentralization provides an opportunity to the superiors and subordinates to share responsibilities and power with each other. This integrates them as a team and promotes team spirit among them. 

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