Advantages of Decentralisation

Decentralisation of Plant Engineering is recommended on account of the following advantages.

Lesser Burden on Plant Manager

Centralisation places too heavy a burden on the plant manager who alone is responsible for planning and decision-making. In most occasions the decision has to be taken on the field or work spot. In a decentralised set-up, the subordinates share the burden of decision-making and leave the plant manager concentrate on overall planning and control.

Possibilities of Diversification

A centralised enterprise with the concentration of authority in single individual at the top will find it difficult to diversify its activities and start new lines of distribution. On the other hand, under a decentralised set-up, diversification is facilitated. This enables the concern to make up any losses in certain lines by gains on the other lines and thus reduces the risks of business.

Executive Development

Decentralisation gives power and initiative and responsibility to a number of executives. This provides a spur to the development of executives in the organisation.

Improvement of Morale

Decentralisation stimulates the formation of small cohesive groups. Since local managers are given a large degree of authority and local autonomy, they weld their people into well-knit groups. With high degree of participation, constant efforts these managers are able to motivate the subordinates extremely well and secure a high degree of morale among them which is very essential for the employees working in plant engineering.