Henri Fayol's principle of management (centralisation and decentralisation)

                   

Fayol's principle centralisation and decentralisation,can be used in every place and whole over the world.{In factory, technical job managerial job,skill job, etc}

Let's us know what it is about...

CENTRALISATION:

Centralisation refers to concentration of power or authority in the hands ✋ of few individuals or top level of management.

                       

DECENTRALISATION:

Decentralisation refer to distribution of power or authority at all the level of management.i.e. top to bottom.

                              

                             

Statement:- 

According to this principle Henri Fayol advocates that the organisation must not be completely centralised or decentralised. There must be combination of both centralisation and decentralisation , according to nature and size of organisation.

A small organisation can be well organised and managed with centralisation technique but in large organisation there is need for decentralisation.

Secondly,if the employees are competent and effecient then they can be trusted by having decentralisation but if employees are not fully developed and are less in number then there must be centralisation.

Positive effects of this management principle:

1. Reduce workload of top level of management.
2. Fast decision
3. No misuse of authority

Consequence of violating this principle:

1. Overburden with responsibility by top level of management.
2. Complete centralisation results in delay in decision.
3. Complete decentralisation results in misuse of authority.

KEYWORDS:

• Combination of centralisation and decentralisation.
• Key decision should be taken by top level of management and routine decision can be taken by managers working at middle and lower level.