Question

Outline any four benefits of decentralisation that enhance the overall resilience of an organisation in the face of unforeseen challenges.

Answer 1

Benefits of Decentralisation in the event of unforeseen challenges:

1. Motivation of Subordinates/Satisfaction of Human needs: Delegation provides a feeling of status and recognition to subordinates. Their independence and job satisfaction increase due to the authority they enjoy and the rewards they get for good performance. Responsibility for work improves the self-esteem and confidence of employees. Thus, delegation promotes a sense of initiative and responsibility among employees. It inspires employees to make full use of their skills.
2. Growth and Diversification: Delegation of authority at all levels facilitates expansion and growth of the organisation. As the quality of managerial talent at all levels improves, the organisation can face the future challenges better. It can grow and expand to a bigger size. It can also undertake new types of business activities.
3. Quick Decision Making: When authority is delegated, lower level employees can take decisions quickly without consulting senior executives. Subordinates are better in touch with local conditions and can take more practicable decisions within the policy framework laid down by top management.
4. Top executives can focus on important matters: Delegation of authority enables a manager to share his workload with his subordinates. It reduces the burden of work on senior executives. By transferring routine work to subordinates, a manager can concentrate on important policy matters. He can, therefore, make better use of his valuable time and ability. The manager who delegates authority can achieve better results than the one who does not.