Decentralization helps in reducing the burden of the top executives a they delegate their power to their subordinates and make them free for more important work requiring their urgent attention. Policy framing, programme scheduling and important decision making are a few of the important jobs which top executives have to undertake and give proper attention.
Every organization structure in the beginning starts with centralized management structure. But with its every growth it tends to decentralize and really after its full growth it cannot remain centralized. Delays and difficulties of centralization yield to decentralization but does not mean that centralization is never good. It is good at times and serves better if the structure is not large and growth as comparatively small or medium-sized.
Centralization means concentration of authority few hands. Centralization thus refers to reservation of authority of decision making. No one at any level, except on the top, is authorized to take decisions. The subordinate’s job is to carry out the decisions taken. The term ‘centralization’ should logically mean the opposite of ‘decentralization’ that is all responsibility and authority is retained at a central points.
To maintain a tied control over the operation and repose confidence in a common belief of the executives that their subordinates are not capable of discourage the delegator to delegate his authority to someone working with or under him. But an atmosphere of team-work and mutual confidence encourages delegation.
There is a fear aspect in delegation which plays a dominant executive knows for certain that once authority is delegated they will loosen the grip over their subordinates and also control over the operations. It is natural that the executives May not like to lose either the grip or control over the operation. But most important psychology is that by their nature executives have no confidence is their subordinates.
How to delegate authority, to answer this question here is an example of a big manufacturing concern the following may be the method of delegation of authority to ensure better result, unfiled direction and command to make effective deletion. When a few of the administrative functions are delegated to subordinate staff it is called administrative delegation.
“Delegation “as Louise A. Allan has explained is the dynamics of management. It is the process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organizational placement, can perform, effectively. And so that he can get other to help him, with what remains. If he wants to get others to help him the manager must first divide his work.
There are four major principles of delegation can help the manager in the office in process of delegation. principle of expected results, principle of parity of authority and responsibility, Principle of delegation of authority, principle of unity of command