File Name: advantages and disadvantages of decentralization .zip
The traditional structure of many businesses is to centralize authority in the hands of a few people, typically a president, CEO, board of directors or senior-level executives.
The organizational structures of the central ministry of education, the degree of administrative decentralization and institutional autonomy vary from country to country. Decentralization is currently a popular reform. It can offer national policy makers ways to alleviate the financial burden on the state, ensure more efficient management, increase participation in, and ownership of, reforms, and ideally the commitment of local decision-makers and parents.
In distribution logistics, the determination of warehouse locations represents a strategic decision. A basic distinction is made between centralized and decentralized locations, which can have different effects on logistics costs see also warehousing costs and delivery service see also Perfect Order Fulfillment ; however, a combination of both variants is also possible. A central warehouse bundles the entire assortment see also Assortment Dimensions of one or more manufacturers. As a rule, customers are supplied from a single location, while decentralized solutions have several strategically and geographically distributed warehouses that do not hold the entire product range in stock. The high level of automation of a central warehouse is also facilitated by the fact that it is easier to implement article-specific warehousing and standardization; the administrative effort is also lower.
Centralization and Decentralization of an organization carries with it various advantages and disadvantages. Lets look at some of them. Decentralization reduces the burden of the chief executives with making routine decisions. As the business grows in size, it requires the services of a large number of managers and here decentralization provides a training ground for the would-be managers. The managers learn by experience within the organization concerned. Decentralization leads to effective control and supervision.
When a part of the work is entrusted to others, it is known as delegation. Decentralisation extends to the lowest level of the organisation. Thus, decentralisation is concerned with the decentralisation of decision-making authority to the lower levels in managerial hierarchy. So, the degree of decentralisation is determined by the authority given. For example, manager A in a company is given the authority to buy certain material worth Rs. It is clear that the degree of decentralisation is less in case of A. Similarly decisions about the matters referred, measure the degree of decentralisation depending upon the power to take decisions vested in an officer without the need of getting consent of somebody else.
Advantages of Decentralisation :. Centralization enables a competent leader to control work and produce results quickly and effectively. It helps to coordinate work and put all activities on track. There are certain special circumstances forcing managers to reserve authority and centralize decision-making power. Actions can be focused on what needs to be done and duplications can be put to rest. It becomes easy to get all units and people do the same thing in the same way at the same time without wastage of resources and energies.
Reduces Burden of Top Executives: Centralization over burdens top executives.
Several features of health care e. Since decentralization in the health sector is often politically driven, the theoretical benefits tend to get more attention than the more concrete facts of actual experiences in other countries, which is mixed. Without proper planning and acknowledgment of the lessons learned by other countries, decentralization of health care can be disappointing at best and detrimental at worst. This note raises the issues to consider if decentralization is to bring about beneficial results. What is Decentralization?
A healthy business is like a living organism, with departments serving specific functions but working in tandem. Management coordinates these organs, or departments, but this orchestration can be a top-down affair, with decisions being made and implemented by authorized individuals, or it can be decentralized, drawing on the skills and knowledge of a broad array of players. Decentralization in management offers the advantage of multiple perspectives and shared responsibility.