Gujarat BoardEnglish MediumSTD 12 CommerceOCMORGANIZING5 Marks
Question
Define and explain the concept of decentralization.
✓
Answer
The delegation of power from upper to lower level in orderly manner is known as decentralization of power.
According to Henri Fayol, “To assign powers to the superiors, to enable distribution of work, and to include in decision making process is called decentralization.”
Whether to opt for centralization or decentralization largely depends of the size of the unit and the approach of the administrators.
Small sized organization can have centralized powers but generally large sized organizations should have decentralized form of management for successful organizing.
Under decentralization not all but some major powers such as executive powers are given by the upper level administrators to the lower level.
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