Drawbacks of Decentralisation

Decentralisation of organisation, though commendable in many ways, has some drawbacks or limitations, which may be enumerated as under :

• It creates problems of co-ordination because authority lies dispersed widely throughout the organisation under such a set-up.
• It may hamper the development of specialised services like maintenance departments because of diversity of thinking.
• It becomes a handicap of support from top management in case of quick emergency decisions.