Importance of decentralisation

Importance of decentralisation
1. Develops initiative among subordinates: When the lower level managers are given freedom to take their own decisions they learn to depend on their own judgment. They keep facing challenges and take initiative to develop solutions for them. It also helps in identifying those executives who have the necessary potential to become dynamic leaders.
2. Develops managerial talent for the future: When the work is passed on to the employees it gives them opportunity to use their talents and increases their experience of handling work independently. This gives them a chance to prove their abilities and prepares qualified manpower who can be promoted to the vacant positions. It also helps to identify those who may not be successful in assuming greater responsibility.
3. Quick decision making: Through decentralisation, the decision making power is entrusted to all the managers. This leads to faster decision making because employees near the point of action need not take approval from the higher level and can take their own decisions. So the process is much faster.
4. Relief to top management: in the process of decentralisation, top level managers are not overburdened with the responsibility and authority as they systematically pass the authority and responsibility at different levels and they become free to concentrate on more important issues.
5. Facilitates growth: Decentralisation means greater freedom to lower levels as well as divisions and departments. This develops a sense of competition among them where each one tries to do better than the other. Thus their productivity levels increase and they generate greater returns for the organization.
6.Better control: