Basically decentralization is the dispersion of decision making governance. Decentralization, is affected by different factors in various fields of life. For example in business, Authority and Control are the two main factors which are responsible in affecting decentralization.
By Authority, I mean the size and height of the company. The larger the size and height the lower will be decentralization and higher will be centralization. Chain of command and span of control also affects it.
In the Control category, Horizontal differentiation, centralization and standardization also have a great impact on decentralization. For example, with standardization and formalization, organization will move towards centralization and the decentralization will decrease. Moreover, number of employees, the style of authority and the nature of organization also have a strong impact on decentralization.
By Authority, I mean the size and height of the company. The larger the size and height the lower will be decentralization and higher will be centralization. Chain of command and span of control also affects it.
In the Control category, Horizontal differentiation, centralization and standardization also have a great impact on decentralization. For example, with standardization and formalization, organization will move towards centralization and the decentralization will decrease. Moreover, number of employees, the style of authority and the nature of organization also have a strong impact on decentralization.
