Following are the limitations of decentralization.
Decentralization may bring about inconsistencies in the organization. For instance, uniform procedures may not be followed for the same type of work in various divisions.
2. Increased Administrative Expenses:
Decentralization increases the administrative expenses because it requires the employment of trained personnel to accept authority. The services of such highly paid personnel may not be fully utilized particularly in small organizations.
Decentralization requires the product lines of the concern to be broad enough to allow creation of autonomous units which is not possible in small concerns.
4. Difficult Coordination:
Decentralization of authority may create problems in co-ordination among the various units.
5. Uncertainties are difficult to Deal with:
Decentralization may not be possible because of external factors. If a company is subjected to uncertainties, it will not be able to meet these under decentralization authority.
Wаterсrаft mаnаgement іѕ а grοwіng buѕіneѕѕ οf іnсreаѕіng сοmрleхіty. It іѕ the effісіenсy οf the ship crewing agency thаt deсіdeѕ the quаlіty οf the ѕhірріng ѕervісe. More >>
Shір mаnаgement οрerаtіοnѕ аnd ѕhір buіldіng іѕ а delісаte endeаvοr thаt requіreѕ the eхрertіѕe οf сοmраnіeѕ thаt hаve yeаrѕ οf eхрerіenсe іn the ѕhірріng іnduѕtry. More >>
Employees are the biggest assets to any organization and their attitude and performance can play a major role in deciding the success of their employer. More >>
Increasingly, we see varied aspects of work and worker interface changing quite significantly. More >>
In an age of specialization why should you risk your prestige by holding your events yourself? If you are in Sydney, you do not need to worry about your coming event. More >>
The need for departmentation arises on account of specialization of work and the limitation on the number of subordinates that can be directly controlled by a superior. More >>
Both the Delphi technique and NGT are relatively new, but each has had an excellent record of successes. Basic differences between them are: More >>
Two final points about job grouping remains to be made. First, departments are often called something entirely different divisions, units, sections and bureaus are all common synonyms. More >>
The most basic theory of affiliation (group formation) is propinquity. This word means people affiliate with one another because of spatial or geographical proximity. More >>
Departmentation should be made on the basis of those methods, which facilitate specialization. It helps in improving efficiency and there by productivity. More >>