Achieve Organisational Effectiveness by Decentralisation

Abstract

The study seeks to determine the extent of the relationship between decentralization and organizational effectiveness, identify the types of decentralization applicable in public sector organisations, determine the extent of the relationship between empowerment and job satisfaction and assess the extent of decentralization in public sector organizations.

The study was carried out primarily through the survey method and interview of employees in three public sector organizations in Nigeria.

Secondary data were obtained through books, journals, and internet. A sample size of 286 was obtained from the population of 1000 at 5% error tolerance and 95% degree of freedom. Empirical works of other scholars were consulted.

The implication of the study is that decentralizing authority makes an organization and its employees to behave in a flexible way even as the organization grows and become taller. Nevertheless, too much decentralization has certain disadvantages: if divisions, functions, or teams are given too much decision-making authority, they may begin to pursue their goals at the expense of organizational goals.

If managers are in a stable environment, using well understood technology then there could be no need to decentralize authority and managers at the top can maintain control of organizational decision making. However, in an uncertain, changing environment, top managers must empower employees and allow teams to make important strategic decisions so that the organization can keep up with the changes taking place.

The advisability of decentralization must be considered in terms of: the nature of the product or service provided, policy making, the day-to-day management of the organization, and the need for standardization of procedures, or conditions or terms of employment of staff.

Key Words: Decentralisation, Organisational Effectiveness, Empowerment and Job Satisfaction.