DECENTRALISATION

CENTRALISATION
 The process of transferring and assigning
decision making authority to higher levels of an
organisational hierarchy.
 Knowledge,ideas and information are cascaded
down the organisation.
 The span of control of top managers is relatively
broad.
DECENTRALISATION
 The process of transferring and assigning
decision making authority to lower levels of an
organisational hierarchy.
 Knowledge,ideas and information are flowing
from the bottom to the top of the organisation.
 The span of control of top managers is relatively
small.
THREE FORMS OF DECENTRALISATION
 Deconcentration
 Delegation

 Devolution
DECONCENTRATION
Deconcentration is the weakest form of
decentralization and is used most frequently in
unitary states—redistributes decision making
authority and financial and management
responsibilities among different levels of the
organisation.
DELEGATION
Delegation is a more extensive form of
decentralization. Through delegation central
organisation transfer responsibility for decision-
making and administration of public functions to
semi-autonomous organizations not wholly
controlled by the central government, but
ultimately accountable to it.
DEVOLUTION
Devolution is an administrative type of
decentralisation. When organisations devolve
functions, they transfer authority for decision-
making, finance, and management to quasi-
autonomous units of local departments with
corporate status.
BENEFITS OF DECENTRALISATION
 Empowering Employees
 Relieving the Burden

 Preparing for Emergencies

 More Efficient Decision-Making

 Ease of Expansion
LIMITATIONS OF DECENTRALISATION
 More cost
 No Specialisation

 Need more specialists

 No uniform action

 No equitable distribution of work