Factors Affecting Decentralisation
The 10 of import factors affecting or influencing decentralisation are:-
1. Size of the organisation
Large organisation makes a lot of decisions. Their decisions are taken at unlike levels. So large organisations are to a greater extent than decentralised. Small organisation makes few decisions. All their decisions are taken at the tumble out level. So minor organisations are less decentralised. Thus, nosotros tin flaming say, the bigger the organisation, the to a greater extent than the decentralisation in addition to vice-versa.
2. Cost in addition to Importance of decisions
The virtually costly in addition to of import decisions are made past times the top marker of management. So, in that location is less decentralisation of costly in addition to of import decisions. Thus, nosotros tin flaming say, the higher the damage in addition to importance of the determination the lesser the decentralisation in addition to vice-versa.
3. Uniformity
If the management wants to a greater extent than uniformity, hence in that location volition hold out to a greater extent than centralisation in addition to less decentralisation.
4. History of organisation
An organisation which expands from inside has to a greater extent than centralisation. For e.g. Henry Ford made virtually of the decisions for Ford Motors. However, an organisation which expands alongside the assistance of business combinations has to a greater extent than decentralisation.
5. Management Philosophy
The management philosophy too influences decentralisation. If the management wants to brand all the decisions themselves, hence the organisation volition hold out to a greater extent than centralised in addition to vice-versa.
6. Availability of efficient managers
If to a greater extent than efficient managers are available, hence in that location volition hold out to a greater extent than decentralisation. However, if in that location is a shortage of efficient managers hence in that location volition hold out to a greater extent than centralisation.
7. Control Systems
If in that location is a good command system inwards the organisation, hence in that location volition hold out to a greater extent than decentralisation. This is because potency cannot hold out decentralised in addition to delegated without proper command techniques.
8. Types of Business
If a concern is erstwhile in addition to deadening moving, hence it volition own got to a greater extent than centralisation. However, if the concern is novel in addition to fast moving, hence it volition own got to a greater extent than decentralisation.
9. Branches of organisation
If an organisation has many branches at unlike places, hence it volition own got to a greater extent than decentralisation. However, if the organisation does non own got whatsoever branches, it may own got to a greater extent than centralisation.
10. Type of organisation
Joint-stock companies are by in addition to large to a greater extent than decentralised compared to sole trading concerns in addition to partnership firms.
