Concentration of authority at the top level of the administration system. Decentralization means dispersal of authority among lower levels of the systems. In centralization the lower levels cant act on their own initiative. They have to refer problems to the higher levels. Decentralization allows field offices to act on their own initiative in specified matters.
Decentralization thus allows field offices to deliver public
service from local centers to client locality. It allows
establishment of direct relationship between client and
administration and bring administration to doorstep.
Decentralization allows local planning, development using
local resources. It allows local participation in
development activities with intensive response and paves way
for meaningful articulation of local demands. Planning
becomes more responsive, realistic. It increases local
capacity to govern local areas using local decision making.
Decentralization will release local energies, enlist local support for development activities. Thus local community can attain political, administrative maturity.
Approaches to DCT:
Decentralization may cause area function duality i.e. demands of area based administration may conflict with claims of functional department.
Advantages of centralization | Disadvantages of centralization |
Maximum control over organization | delay and red tape |
all work is done in same manner and in accordance to same policies. | overburden head office |
avoids duplication of work | autocratic control over subordinates |
active role in personal leadership | not conducive for diversification, development of second line of executive |
suitable for emergencies | anti peoples participation |
max utilization of resources | head office acts without information of local conditions. |
Advantage of Decentralization | Disadvantage of decentralization |
Reduces delay, HQ is less burdened | Complicates coordination, integration of activities of multiple units |
policy making and execution are seperated | communication is difficult between various units. |
national policies are adopted to local conditions. Facilitates peoples participation. | Administration is expensive |
second line of executives is developed | cant handle emergencies |
reduces communication overhead | encourages divisive forces |
encourages competition and comparitive standard among field offices | increases corruption, nepotism |
enables experimentation in decision making and implementation by field units without committing whole organization to untried course of action | weakens national perspective by breeding local-ism, parochialism |
Responsibility: As the central authority is held responsible for failures. It doesn't delegate discretionary powers to field offices and prefers direct control over them.
Administrative: Old organizations with stable procedures favor decentralization whereas frequent changes favor centralization; Higher pressure for speed, autonomy, competent staff favor decentralization.
Functions: Uniformity of functions favors centralization; If technical nature of work and multi functional organization organization then decentralization is favorable.
External: People participation, interest groups, grass root democracy, demand for planning from below all encourage decentralization.