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What do you mean by decentralization

Answer» Decentralisation is defined as the assigning of authority, orderly throughout various levels of management, in an organisation. It explains the way in which power to take decisions is allocated among various levels in the organisational hierarchy. In other words, it refers to the dissemination of powers, functions and responsibility, away from the central location. Entrusting a small portion of work to subordinates is called delegation, but when it is extended throughout the organisation, it is known as decentralisation.Good examples of decentralised business are Hotels, supermarket, Dress showrooms and etc. Because it is not possible for one person to focus on more than 100 branches which have branches throughout the world. Take an example on hotel, When a particular person holds a chain of Hotels as his business, he particularly focuses on using decentralised structures so that local hotel managers and assistants are empowered to make on-the-spot decisions to handle customers – problems, complaints and requirements.<br>Decentralization means the power is divided between centre and state..


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