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Decentralization is a part of the arrangement in the organization where the delegates at the top level of the organization give power to the delegates of the lower and middle management in the organization. The activities that are performed on a regular basis and the decision-making skills presented to the ones working in the middle and lower level in the organization. The duties that are presented in the hands of the delegates of the top level are to make important and necessary decisions based on market growth and strategies.Â
In decentralization, the various tasks of the organization are set free from the hands of the top-level employees and are assigned to the middle and lower-level employees in the organization. Decentralization enables the process of diversification of various parameters such as economics, goods, and other activities. The skills and ability of the employees in the organization will be enhanced by taking the activities to perform as the power in the organization is decentralized. In the decentralized organization, the employees will learn to correct the errors when required and also will make proper decisions at the time of need.
It is the process by which activities in the organization are delegated or distributed in an entity or organization.
A decentralized organization is a business structure that distributes decision-making authority throughout the entire company, rather than concentrating it at the top.
In centralization the power remains with the central authority whereas in decentralization power is delegated among individuals.