Decentralisation is assigning authority throughout the levels of management, in an organization. It describes the way in which power to take decisions is allocated among various levels in the organizational hierarchy. it refers to the dissemination of powers, functions, and responsibility, away from the central location.
Importance of decentralization:
1. Passing of authority at middle and lower level shows the trust and faith of top level in their subordinates and this trust and faith motivate the employees working at different levels as they are allowed to take decisions without seeking the approval of superiors.
2. In the decentralization managers working at a lower and middle level also learn the art of making decisions.
3. In the decentralization process, decision-making is not restricted in few hands only but decision-making power is entrusted to all the managers who are taking actions or performing the activities.
The 73rd constitutional amendment is a landmark incident in the constitutional history of India because for the first time this amendment empowered Indians at the grass-root level to participate in administration-which we call decentralization of power.