Question

Explain the following points of importance of Decentralisation:
(i) Facilitates growth
(ii) Better control

Hint:

To remember Decentralization benefits: - Growth: Promotes divisional autonomy, creating fully prepared leaders ready for expansion. - Control: Direct accountability means clear performance measurement and immediate corrective action at the root level.

Answer 1

Step 1: Identify the concept.
Decentralisation means spreading decision-making authority down to lower and middle level managers instead of keeping it concentrated at the top.
Step 2: Facilitates growth.
Since lower level managers get real authority, they can run their units almost like independent businesses, this builds their confidence and readiness to take on bigger responsibilities, which supports the overall growth and diversification of the organisation.
Step 3: Better control.
When authority is decentralised, each unit's performance can be measured on its own, and problems can be spotted and corrected quickly at that level itself, which strengthens control instead of weakening it.
Step 4: Final answer.
Decentralisation facilitates growth by developing capable managers and allowing units to operate independently, and it improves control since each division's performance can be evaluated and corrected separately.