1. Activities Diversity: it will reduce
the burden on the chief executives while decisions. They can easily spend the
remaining time for important activities like raising necessary finance,
starting new lines of production and obtaining licenses solving crucial
problems of the business concern,
2. Management personal Growth: because the
business grows in size, it needs the services of an outsized variety of
managers and here decentralization provides a coaching ground for the would-be
managers. The managers learn by expertise at intervals the organization
4. Improvement of morale: Decentralization helps improvement of social
control ability that results in a rise in their morale and this leads to a
8. nearer and higher worker management and
community relations area unit doable in little body units for business as a
full, wherever decentralization could mean a additional widespread distribution
of roles and purchases, which can scale back proportionately the unfavorable
impact of sales decline.
5. Satisfaction of human wants:
Decentralization is a vital tool for satisfying human needs of power,
independence, standing and status. This satisfaction helps in building a cadre
of happy managers, United Nations agency feel their responsibility towards
6. fast and wise call doable: Since
decision-making authority is as close to as possible to the place wherever
action takes place, those having this authority will build moderately correct,
wiser and timely selections as a result of they’re cognizant of the realities
of things. Decentralization conjointly minimizes the delay in act info.
10. Reduces the Burden of prime Executives:
It frees the highest managers from the burden of taking too several in
operation selections. this allows specialization and conjointly permits the
highest managers to assume for the long run and build plans consequently.11. Facilitates
Diversification: Diversification of products or markets is possible only by
departmentalization. Without decentralization, departmentalization is
meaningless and practically impossible.
7. alternative economies could also be
achieved through the higher utilization of lower and middle management, larger
incentive, additional and improved coaching opportunities, insurance that some
product won’t be pushed at the expense of others.
9. Decentralization could lead to a rise
within the social control social web product, i.e., edges to the community as
distinct from edges to the corporate. These general edges could embody
additional freedom of action for people, additional widespread chance for
constructive individual participation, less stratification at intervals the
3. Effective management and Supervision:
Decentralization results in effective management and direction. Since involved
managers relish full authority to create changes in work assignment, to require
disciplinary actions, to alter production schedules or to advocate promotions,
they’re in a very position to supervise the subordinates’ activities.
12. Improves Motivation:
Decentralization provides more chances for the executives to exercise
initiative without any undue interference from the top executive. This improves
the morale of the employees and motivate them for peak performance.
15. Develops the Quality of Managers:
The executives will get training and also opportunities to develop their
16. Flexibility: It permits the
enterprise to move quickly and there will be more flexibility in meeting
competition because prompt and spot decisions are possible.
13. Secures Better Co-ordination: As
self-sufficient departments are established with necessary service functions,
all the activities are coordinated at the departmental level.
14. Ensures Effective Control: It is
comparatively easy to measure the performance of the operations at the
department level. This will lead to effective control.