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“If we delegate the authority, we multiply it by two, if we decentralise it, we multiply it by many” How? Give an example.


Let us assume that a Chief Manager of a company assigns a job/responsibility to the Production Manager for appointing employees needed for his Division on salary less than? 10,000 then this will be turned as delegation of authority. On the contrary, if this authority for appointing employees is delegated to every departmental head then it will be termed as decentralisation. If, departmental heads further delegate this authority to their deputy managers, it will lead to the expansion of decentralisation. In this context, it can be said that if we delegate the authority, we multiply it by two; if we decentralise it, we multiply it by many.

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“If we delegate the authority, we multiply it by two, if we decentralise it, we multiply it by many” In the light of this statement explain any four points of importance of decentralisation.


In the light of this statement it can be said that decentralisation results in the multiplication by many because of the following points of its importance:

(i) Develops Initiative among Subordinates: Under decentralisation, authorities are delegated in large amount. Authority is a kind of power which compels a person to think/contemplate or to do something new. This inculcates in him the ability to take initiative. Decentralisation not only gives authority but also makes it possible to convert great ideas into valuable creative work.

(ii) Develops Managerial Talent for Future: Under decentralisation, decision making authority is given even to the lower level managers. In this way, by getting opportunities to take decisions, knowledge and experience of all levels of managers increases. This develops talent in the managers to bear extra responsibility in the future.

(iii) Quick Decision Making: The burden of all managerial decisions is no more confined to some limited people but is distributed among many people. This not only leads to quick decision making but also results in better decision making. All the people are well aware of the problems faced by their unit or division and for this reason they are capable of taking the best possible and quick decisions.

(iv) Relief to Top Management: Under decentralisation authority related to take monotonous decisions is delegated to the subordinates. As a result, top management relieves itself from trivial affairs and consequently the workload is quite reduced. This saves their valuable time which is then utilized to brighten the future of the organisation and to establish coordination.

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Write three characteristics of decentralisation.


Following are the salient characteristics of decentralisation:

(i) It is an expanded version of delegation of authority.

(ii) It increases the significance of the role of subordinates.

(iii) It is a process which is applicable to the organisation as a whole.

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“The concept of decentralisation is related to the concept of delegation”. Explain this statement in brief.


The relationship between decentralisation and delegation can be clarified in the following way: Example: If CEO delegates some authority to a divisional manager then this is called delegation of authority. If divisional manager delegates his authority further to his subordinate this will be called decentralisation. If the same process is repeated for two divisions then expansion of decentralisation takes place. If this process is implemented on the organisation as a whole then decentralisation will be at its peak.

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Explain the term ‘Decentralisation’.


Decentralisation means leaving only those authorities which need to be reserved for top level, rest all are delegated permanently to the subordinates. Decentralisation is an expansion of delegation of authority. Under decentralisation number of decision taking point increases because authority is delegated to middle level and lower level managers to take significant/ momentous/important decisions.

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