Factors Affecting Or Influencing Decentralisation

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 overstep level. So pocket-size organisations are less decentralised. Thus, nosotros tin say, the bigger the organisation, the to a greater extent than the decentralisation together with vice-versa.

2. Cost together with Importance of decisions

The to a greater extent than or less costly together with of import decisions are made past times the top degree of management. So, at that spot is less decentralisation of costly together with of import decisions. Thus, nosotros tin say, the higher the damage together with importance of the conclusion the lesser the decentralisation together with vice-versa.

3. Uniformity

If the management wants to a greater extent than uniformity, thus at that spot volition hold out to a greater extent than centralisation together with 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 to a greater extent than or less of the decisions for Ford Motors. However, an organisation which expands amongst the attention of business combinations has to a greater extent than decentralisation.

5. Management Philosophy

The administration philosophy besides influences decentralisation. If the administration wants to brand all the decisions themselves, thus the organisation volition hold out to a greater extent than centralised together with vice-versa.

6. Availability of efficient managers

If to a greater extent than efficient managers are available, thus at that spot volition hold out to a greater extent than decentralisation. However, if at that spot is a shortage of efficient managers thus at that spot volition hold out to a greater extent than centralisation.

7. Control Systems

If at that spot is a good command system inwards the organisation, thus at that spot volition hold out to a greater extent than decentralisation. This is because authorisation cannot hold out decentralised together with delegated without proper command techniques.

8. Types of Business

If a delineate organisation is one-time together with boring moving, thus it volition own got to a greater extent than centralisation. However, if the delineate organisation is novel together with fast moving, thus it volition own got to a greater extent than decentralisation.

9. Branches of organisation

If an organisation has many branches at unlike places, thus it volition own got to a greater extent than decentralisation. However, if the organisation does non own got whatever branches, it may own got to a greater extent than centralisation.

10. Type of organisation

Joint-stock companies are to a greater extent than oft than non to a greater extent than decentralised compared to sole trading concerns together with partnership firms.