Decentralizaion Decentralization is diffusion of authority, in which set up the organization is divided into different section and departments in order

to help the organization grow scientifically and with a purpose of direction leading to harmony in relations and healthy atmosphere which generally is absent in centralized system of organization. It is a process by which specific responsibility is assigned to subordinates. Such a responsibility, when assigned to subordinates, is always followed by sufficient authority which also is given to the executive and other subordinates at lower levels. Decentralization, therefore, refers to assigning of responsibility and delegation of authority to various executives and other subordinates at lower levels in an effort to make the lower level more responsible and accountant able to the job entrusted to them.