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    Decentralization - Benefits and Problems.

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    a) What is decentralization?
    b) List and describe three potential benefits and three potential problems with decentralization.

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    Decentralization means delegation of authority and responsibilities. The dispersal of authority of decision-making to the lower level management is termed as decentralization. According to Fayol "Everything that goes to increase the importance of the subordinate's role is called decentralization."

    The need for decentralization is felt when the business grows in its size which necessitates diversification of activities. Decentralization occurs at the time of decisions of routine nature but if decisions are vital, the authority is not decentralized. The technological development, political factors and availability of managers also affects the degree of decentralization. Not ...

    Solution Summary

    Solution clearly explains what exactly decentralization means, the potential benefits and problems of the same. Includes 380 words.