The

decision making authority is concentrated in the few hands at the top Everything that is going to reduce the importance of subordinates roles in the organization Reservation of the authority at central points within the organization

 One

locus of control and greater uniformity Power and prestige to the senior management Easier training Provide personal leadership Facilitates personal supervision To handle emergency situations

 Delay

in decision making Fail to pay proper attention on the policy issue Underutilization of the human resources Employee dissatisfaction

 If

the authority is delegated to the levels where work is to be performed Everything that goes to increase the importance of subordinates role Dispersion of the authority throughout the organization

 Effective

Communication Fast decision making Enhances employee job satisfaction Executive development Competitive advantage

 Delegation

is a process while decentralization is the end point of delegation Delegation mainly refers to granting authority between one individual and another while decentralization is the result of systematic delegation throughout the organization Delegation is essential and decentralization is optional.

 Size

of the organization History and age of the organization Philosophy of the top management Ability of the lower level mangers Strategy and the organization's environment Nature of management functions Available controls Costliness and significance of decisions