Discuss the process of decentralisation in an organization. Explain its advantages and the challenges it may create. Finally, suggest two practical measures an organization can adopt to overcome these challenges.

Step-by-step solution

1. Step 1: Define decentralisation as shifting decision‑making power from top to lower levels.
2. Step 2: Outline the process: identify functions suitable for delegation, set clear objectives, empower subordinates, and monitor results.
3. Step 3: List advantages: faster decision‑making, higher employee motivation, better utilization of local knowledge.
4. Step 4: Identify challenges: loss of control, inconsistent decisions, potential conflicts.
5. Step 5: Propose measures to mitigate challenges: implement clear guidelines, establish communication protocols, and provide training.
6. Step 6: Summarise the answer in a concise statement.

Concept tested: Decentralisation process and impact

Published 13 October 2026 · How this solution was prepared and checked