What is decentralization in administration?

Decentralization in administration is the organizational way that allows delegation of authority at lower levels or by entrusting certain administrative activities to sections that do not have a hierarchical relationship with the central administration.

The fundamental characteristic of decentralization is the fact that management and employees who make up the organization enjoy a certain autonomy and are not subject to command powers hierarchical.

In a decentralized organization, actions are taken more quickly when solving problems, more people assist with information for the decision making and employees feel more motivated and included in the decisions that affect their work lives.

In very large organizations, decentralization is necessary, because top managers do not have the information and the capacity to make all the decisions involved in the achievement of objectives.

Decentralization and functional organization

Currently, the administration's efforts are focused on making organizations more flexible and responsible, thus increasing the trend towards decentralization in decision-making, a clear example of decentralized organization is observed in the functional organization whose fundamental principle is the Staff.

This type of organization forms a functional organization in which each operator reports to his superior boss and to others, each in his specific area.

This is characterized by exercising a functional or divided authority based on the specialization and knowledge, which are expanded to the entire organization, with direct communication between the different areas. Decisions are decentralized promoted by the specialty and not by the hierarchy, in this way each is made emphasis on specialization and each body or position contributes its knowledge to meeting the goals of the organization.

Decentralization It allows lower levels of the organization to examine decisions in detail, this greatly increases efficiency.

Advantages of Decentralization

• Some decisions are made more quickly by those who execute the actions.
• There is more information about the situation from the decision makers.
• High motivation and high development expectations are maintained among middle-level managers thanks to increased participation in the decision-making process.
• Training is provided to middle managers.
• Bosses are relieved of certain jobs and open to the possibility of taking on larger ones.
• There is greater speed in solving problems, thanks to the contribution of initiatives by the executors.
• Decision making is improved by expanding it to lower levels.
• The possibility of optimizing control is expanded.
• Managers are in greater contact with the position where decisions must be made, this reduces delays caused by consultations.
• Increase efficiency by taking advantage of staff time and skills.
• The quality of decisions is improved by relieving managers of decision overload.
• Coordination expenses are reduced due to the greater autonomy of the different areas.

Disadvantages of Decentralization

• It may happen that there is a lack of information and coordination between the different departments.
• Higher cost in training middle managers.
• There is no uniformity, policies and procedures vary widely in different departments.