Centralisation and Decentralisation of Authority

Decentralisation is actually an organisational technique and in order lo be successful, it should he treated as a managerial philosophy. The basic philosophy of decentralisation is to spread the decision making among more people within the organisation. In contrast to a centralised structure the decentralised structure is wider and has fewer level in hierarchy. This implies a broader spars of control than the tall narrow structure of a centralised organisation. 

As a nunagerial philosophy decentralisation is the process of moving decision making authority and responsibility further down the hierarchy. Delegation of authority becomes the critical factor of a good centralised system. For the individual, this usually mixes being thrust into a "sink or swim" situation haulier in one's career than would be true in a centralised organisation. The individual who thrives on more job Independence would probably adapt very well to such a situation. Participation is a way of life in the decision making process for employees in decentralised organisations. 

Advantages 

• This types of managerial system has a broader range of experience and training (in a practical sense)  of the employees. 
• As the workers become more actively involved in the decision making process they are more likely to have a vested interest in the decisions and therefore, more likely to cany them to a successful conclusion. 
• More the individuals are exposed to decision making situations the better those people are prepared to handle the competition around. 

Disadvantages 

• Decentralisation are the expense of training managers (formal training and the expense of mistaken) and the absence of uniformity of action when uniformity is desirable. 
• From a behavioural standpoint there are individuals who will be uncomfortable in a decentralised system. Such individuals would probably not be all that interested in climbing the organisation ladder and would really not care to be burdened with additional responsibility. 

However, when top management is committed to the idea of more employee participation and when managers and employees are well trained, a decentralised structure can work 

extremely well.