Decentralization is needed because of the following benefits:
1. Relief To Top Management
In decentralization, authority and responsibility is systematically distributed among different levels of employees. It reliefs top level management from the burden of daily operation. It helps them to focus on future plans and policy.
2. Facilitates Managerial Development
Decentralization encourages lower and middle level managers for future promotion. Lower and middle level managers can get opportunity to learn by doing. They get chance to handle different assignments and make decisions independently. It helps to enhance their skills.
3. Better And Quick Decision Making
Decentralization ensures better and quick decision making in the organization. Lower and middle level managers have the right to take decision independently. They do not have to wait for the decision of top management.
4. Better Control
Better control is possible in decentralization process because authority if delegated to lower and middle level managers for controlling their subordinates and departments.
5. Environmental Adaptation
5. Environmental Adaptation
Decentralization helps to adopt internal or external environmental changes by coping challenges.
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6. Higher Employee Morale
Decentralization shares authority at lower levels. It is a power sharing process. This process helps to empower lower level employees.
7. Facilitates Growth
Decentralization facilitates growth by providing freedom to lower level managers. It encourages the subordinates to work properly. It helps to increase productivity and creates chance for expansion and growth.
