Decentralisation PPM.pptx

Decentralisation  Decentralization refers to a specific form of organizational structure where the top management delegates decision-making responsibilities and daily operations to middle and lower subordinates. Importance of decentralization Faster Decision-Making Increased Flexibilit...

Decentralisation  Decentralization refers to a specific form of organizational structure where the top management delegates decision-making responsibilities and daily operations to middle and lower subordinates. Importance of decentralization Faster Decision-Making Increased Flexibility Employee Empowerment Better Use of Local Knowledge Reduces Workload for Top Management Promotes Innovation  Executive development Development of managerial skills Relieves top management Facilitates growth Better control Effective communication Types of decentralization Geographic Decentralization -Regional Decentralization -Country-Specific Decentralization Functional Decentralization - Departmental Decentralization -Product-Based Decentralization  Matrix Decentralization -Combining Geographic and Functional Decentralization -Combining Product-Based and Functional Decentralization Project-Based Decentralization -Temporary Teams Hybrid Decentralization -Combining Different Approaches Advantages :- Disadvantages:- Making Decentralisation effective Centralised top policy and Control Appreciation of Concept Decentralisation Development of Managers Competition among units Factors determining degree of Decentralisation 1. Size of Organisation 2. History of Organization 3. Mannagement Philosophy 4. Availibility of Managers 5. Pattern of planning 6. Coontrol techniques 7. Decentralised activities 8. Rate of Change in Organization 9. Environmental Influences