Page 45 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Library Administration and Management

Notes 2.7.1 Definitions of Decentralisation

According to Henri Fayol, “Everything that goes to increase the importance of the subordinate’s
role is decentralisation; everything that goes to reduce it is centralisation.”
According to Louis Allen, “decentralisation refers to the systematic effort to delegate to the
lowest levels all authority except that which can only be exercised at central point.”
This definition makes it clear that even in decentralisation; delegation to the lowest levels is not
complete as the basic functions in the management process are centralized.

2.7.2 Advantages/Importance of Decentralization

1. Decentralisation helps to improve the quality of decisions/decision-making at the top
level management: Decentralisation of authority among other executives at all levels in
the Organisation relieves the top executive of the excessive burden saving his valuable
time, which he can devote to more important and long-term problems. This is bound to
improve the quality of his decisions regarding such problems.
2. Decentralisation facilitates diversification of activities: It is a matter of common experience
that an Organisation with departmentation on the basis of products facilitates diversification
of products or market even when the authority is centralized. Decentralisation takes this
process a step further. Managers of semi-autonomous product divisions are able to utilise
their skills and experienced judgment. This has a bearing on their products and the market.
The enterprise also attains maximum possible growth. Decentralisation is beneficial when
new product lines or new activities are introduced in an Organisation. Such policy creates
self-sufficient units under overall co-ordination of top level management.

3. Decentralisation encourages development of managerial personnel: Most companies find
lack of managerial talent as a limiting factor in their growth. A company cannot expand
effectively beyond the scope and abilities of its managerial personnel. Capable managers,
however, can be developed only by giving managerial jobs to suitable persons and
delegating them the authority to make important decisions. Such wide exposure gives
them opportunity to grow and to have self-development for higher positions. The more
talented and capable persons will learn and improve and qualify themselves for higher
managerial positions. Only a decentralized Organisation can offer such opportunities to
future managers without involving additional expenditure. A decentralized Organisation
also allows its managers adequate freedom to try new ideas, methods or techniques. In
brief, decentralisation creates a team of competent managers at the disposal of the company.

4. Decentralisation improves motivation: Research conducted by social scientists has proved
that the Organisation structure itself exercises some influence on the motivation of the
people working within it. An Organisation structure which facilitates delegation,
communication and participation also provides greater motivation to its managers for
higher productivity. Decentralized Organisation structure is most favourable for raising
the morale and motivation of subordinates which is visible through better work
performance.

5. Decentralisation makes decision-making quicker and better: Since decisions do not have
to be referred up through the hierarchy, quicker and better decisions at lower levels can be
taken. Divisional heads are motivated to make such decisions that will create the maximum
profit because they are held responsible for the effect of their decisions on profits. Thus
decentralisation facilitates quick and result-oriented decisions by concerned persons.
6. Decentralisation provides opportunity to learn by doing: Decentralisation provides a
positive climate where there is freedom to make decisions, freedom to use judgment and

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