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Decentralisation is the delegation of authority among various levels in an organisation ranging from top level to lower level. It is not mandatory for an organisation to follow decentralisation, but it is beneficial in the long run. Here are a few points that will support the statement why an organisation wants to be decentralised.
1. Decentralisation allows the lower level managers an independence to make their decisions. It gives more confidence and feeling of responsibility to the managers.
2. Decentralisation provides the managers with an opportunity to grow and be a part of the growth of the organisation. It helps in skill development and the ability to tackle new challenges. It also provides a platform to showcase their talent and get noticed for more responsible positions.
3. Decentralisation helps analyse the performance of every department and also determine how each one of them are helping the organisation in fulfilling the objectives.
4. Decision making is faster in a decentralised organisation. There is no need to take approval from top level to perform basic level functions, it helps avoiding delay in decision making.
5. The decentralisation system offers growth opportunities for the managers at lower levels. There is a tendency to outperform each other which results in more productivity and indirectly leads to growth of the individuals.
6. Decentralisation makes work load of top-level management less. They can concentrate more on the policy making for organisation growth.