Decentralization/ Administrative

Decentralization
The word decentralization means transfer of
power and authority from the central
government to local or sub national units of the
government for the meeting of grass root
people’s demand.
Administrative decentralization refers to the
redistribution of authority, responsibility and
financial resources among different levels of
government for providing public services.
It is the transfer of responsibility for the
planning, financing and management of certain
public functions from the central government
and its agencies to field units of government
agencies, subordinate units or levels of
government, semi-autonomous public
authorities or corporations or area wide regional
or functional authorities.
There are three major forms of administrative
decentralization.
• Deconcentration
• Delegation
• Devolution
 Deconcentration
• Deconcentration is often considered to be 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 central government.
• This may mean shifting of workload from one
ministry to the other or from ministry to its
field or local administration.
• In other words it can merely shift
responsibilities from central government
officials in the capital city to those working in
regions, provinces or districts, under this
setup, local or field administration is done
only under the supervision of central
government ministries.
 Delegation
• Delegation is a more extensive form of
decentralization. Through delegation central
governments 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.
• Governments delegate responsibilities when
they create public enterprises or corporations,
housing authorities, transportation authorities
etc. Usually these organizations have a great
deal of discretion in decision-making. They
may be exempt from constraints on regular
civil service personnel and may be able to
charge users directly for services.
 Devolution
• A third type of administrative decentralization
is devolution. When governments devolve
functions, they transfer authority for decision-
making, finance, and management to quasi-
autonomous units of local government with
corporate status.
• Devolution usually transfers responsibilities
for services to municipalities/councils that
elect their own mayors/chairman and
councilors/members, raise their own
revenues, and have independent authority to
make investment decisions.
• In a devolved system, local governments have
clear and legally recognized geographical
boundaries over which they exercise authority
and within which they perform public
functions.
There is a set of five fundamental characteristics
in explaining the purest form of devolution
identified by Cheema and Rondinelli (1983).
1. Power is transferred to quasi-autonomous
units governed independently and separately
without the direct control of central
government;
2. The units enjoy corporate status and powers
to secure its own resources to perform its
function;
3. The units maintain control over a recognized
geographical area;

4. Devolution implies the need to develop local

government institutions;

5. It is an arrangement of reciprocal, mutually

beneficial and coordinate relationship between
central and local government.
 Advantages/Benefits of Decentralization

• Top management is relieved of much day-to-

day problem solving and is left free to
concentrate on strategy, on higher level
decision making, and coordinating activities.
• Decentralization provides lower level managers
with vital experience in making decisions.
Without such experience, they would be ill-
prepared to make decisions when they are
promoted into higher level positions.
• Added responsibility and decision making
authority often result in increased job
satisfaction. Responsibility and the authority,
that goes with it makes the job more
interesting and provides greater incentives for
people to put out their best efforts.
• Lower level managers generally have more
detailed and up to date information about
local conditions than top managers. Therefore
the decisions of lower level management are
often based on better information.

• It is difficult to evaluate a manager’s

performance if the manager is not given much
latitude in what he or she can do.
Disadvantages of Decentralization
• Local level officials may make decisions
without fully understanding the “big picture.”
While top level officials typically have less
detailed information about local operations
than the lower level officials, they usually have
more information about the state as a whole
and have a better understanding of the overall
strategy.
• In a truly decentralized organization, there
may be a lack of coordination among
autonomous officials.
• Local-level officials may have objectives that
are different from the objectives of the entire
administration.
• In a strongly decentralized administration, it
may be more difficult to effectively spread
innovative ideas.