Accounting technicians scheme west africa
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- C.14.1 Advantages of Decentralisation
- C.14.2 Disadvantages of Decentralisation
- Review Questions Multiple Choice Questions
| C.14 Decentralisation Decentralisation is the systematic effort to delegate authority to lower levels of the organisation. As managers opt fora more decentralized design, the important question to consider is not whether an organisation should be decentralized, but to what extent should it be decentralized. Furthermore, decentralisation requires that there is corresponding investment in control to ensure that organisational objectives are achieved. C.14.1 Advantages of Decentralisation (i) A decentralized organisational structure stresses delegation of decision-making and lightens the load of top managers. ii) The development of 'generalists rather than specialists is encouraged, thereby facilitating succession into positions of general managers. iii) Managers develop their own decision-making skills and are motivated to perform because advancement is related to performance. iv) Intimate social ties and relationships are promoted, resulting in greater employee enthusiasm and coordination. v) Familiarity with important aspects of special work is readily acquired. vi) Efficiency is increased since the managers are near the activities for which they are held responsible and trouble spots can be located and remedied easily. vii) For multi-unit enterprises, full advantage of various local conditions can be obtained. C.14.2 Disadvantages of Decentralisation (i) It may bring about diseconomies of scale with the increase in the overhead expenses of each decentralized unit. ii) Some managers still find it difficult to make decisions, though they have the authority. Because of this the methods used to measure accountability are time consuming and instil fear in the managers. Review Questions Multiple Choice Questions 1. In the hierarchy of management, which of the following is odd a) Top management b) Production management c) Middle management d) Supervisory management e) First line management 2. Which statement is NOT an advantage in a formal organisation a) Well defined authority, responsibility and accountability b) Proper standardization of work is practicable c) Formal communication is widely practiced d) Duplication of work is practiced 160 e) Rules are considered religiously 3. Which of these can NOT be associated with organising a) Dividing the tasks into jobs b) Arranging task activities into logical and comfortable groups c) Assigning and delegating authority d) Future oriented e) Setting up the system for integration of task activities 4. Organisations can be classified by the following EXCEPT a) Structure b) Government c) Ownership d) Type of authority e) Major purpose 5. Which of these is NOT an advantage of matrix structure a) It encourages decentralised decision making b) Improved environmental monitoring c) Encourages unity of command d) Flexible use of organisational resources e) Professional identification is maintained Download 3.37 Mb. Share with your friends:
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