Question 3 (b) part 2

Decentralisation

3 marks

Time to write
About 6 minutes

From an older CBCS paper

Question

Question 3 (b) part 2 · 3 marks

Write notes on: (2) Decentralisation

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

6 minfor 3 marks

Read from the question

  • notes onA note opens with the meaning, then two or three key points. No long introduction.

Write it in this order

  1. 1 Meaning, and relation to delegation 1 mark 2 min
  2. 2 Benefits 1 mark 2 min
  3. 3 Degree of decentralisation, with example 1 mark 2 min

Easy marks

  • Step 1 opens with the meaning: a one-line definition, the quickest mark in it.

Try it first. About 6 minutes for 3 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Meaning

An organisation is decentralised when decision-making authority is passed down to lower levels, and centralised when it is kept at the top. Delegation is the passing of authority from one level to the next; decentralisation is the extent to which authority has been passed down through the whole organisation, so the more authority delegated throughout, the more decentralised the organisation is.

Picture itDecentralisation

1The counter can't say yes: she phones head office upstairs while the queue fumes.

CentralisationConcentrated at the top; slower; matters go up the hierarchy.

2The same counter, but the stamp is in her own hand—upstairs, the boss studies the plan.

DecentralisationSpread across levels; decisions taken on the spot; top managers focus on strategy.

Benefits

  • Top managers are relieved and can concentrate on policy.
  • Decisions are better and faster, because they are made close to the scene of action.
  • Lower-level managers gain training, morale and initiative, and the organisation becomes more flexible in a changing environment.

A matter of degree

No organisation can be completely centralised or completely decentralised. Total decentralisation would bring loss of control and duplicated services, so major policy areas such as finance, capital expenditure and overall profit goals are usually kept at the top. The degree chosen depends on factors such as the cost of the decision, the wish for uniform policy and the size of the organisation. A retail chain may let store managers decide staff rosters and local promotions while pricing policy stays at head office.

Where the 3 marks sit

#ComponentMarks
1Meaning, and relation to delegation1
2Benefits1
3Degree of decentralisation, with example1
Total3
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