DELEGATION & DECENTRALIZATION

Clique Comrades
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1. Pooja Motwani
2. Mohit Ramrakhyani
3. Neha Jagnani
4. Shilpa Harchandani
5. Sheetal Keswani
6. Divya D.

DELEGATION

Delegation is the actual process of assigning job activities and corresponding authority to specific individuals within the organization.

STEPS FOR EFFECTIVE DELEGATION

• Prepare
• Assign
• Confirm commitment
• Avoid ‘Reverse Delegating’
• Ensure accountability

ADVANTAGES OF EFFECTIVE DELEGATION

• Minimize workload of managers
• Speeds up decision making
• Employee development
• Motivates and builds morale
• Training and development

BARRIERS TO EFFECTIVE DELEGATION

• Fear of loss of power
• The ‘I can do it better myself’ fallacy
• Lack of confidence in subordinates
• Fear of being exposed
• Inability to establish and exercise proper controls

Decentralization

“ Decentralization refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points”

Process of Decentralization

• Centralisation
• Development of managers
• Communication and Co-ordination
• Control
• Dispersion

Limitations of Decentralization

• Co-ordination
• Control
• Adaptability
• Lack of uniformity
• Ability of lower level managers

Importance of Decentralization

• Reduction of Burden of Top managers
• Faster decision
• Promotes diversification
• Promotes motivation
• Flexibility and Better communication

FACTORS AFFECTING DECENTRALIZATION

External factors affecting Decentralization

• Environment
• Regulation of the government
• Market features
• Bargaining with trade unions
• History of organisation

Internal factors affecting Decentralization

• Size of the company
• Cost Control
• History of enterprise
• Communication system
• Control system

For Example

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