Advantages And Disadvantages Of Decentralization In The Public Sector

Decent Essays

Decentralization is one of the management control system technique that been implement in public sector. It is about devolution of higher authority to the lower management. This technique is also indicated a delegation of power and authority from the central government to the lower level management as a means to improve the management quality. It was also identified as a tool for more effective decision making. In details, decentralization concept is an attempt to give the organisation’s constituents which are managers and staff more control over what happens in the organisations. Normally, lower level management or local government are only having authority over their specific geographical area and do not have the powers to pass or enforce laws that affect a wider region.
This management control system is actually aimed at efficiency and problem solving where the organisations are given the power and responsibility to solve problems effectively in time. It includes demand for less control and uniformity that subsequently reduce the size and cost associated with maintaining a large central bureaucracy. …show more content…

Decentralization may not always be efficient, especially for standardized, routine, network-based services. It can result in the loss of economies of scale and control over scarce financial resources by the central government. Weak administrative or technical capacity at local levels may result in services being delivered less efficiently and effectively in some areas of the country. Administrative responsibilities may be transferred to local levels without adequate financial resources and make equitable distribution or provision of services more difficult. Decentralization can sometimes make coordination of national policies more complex and may allow functions to be captured by local elites. Also, distrust between public and private sectors may undermine cooperation at the local

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