Quiz Entry - updated: 2026.07.14
What is decentralisation, and what are its advantages and disadvantages?
Decentralisation systematically delegates authority to the lowest possible levels — keeping centrally only what must be exercised centrally.
The definition: the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points — placing authority where the responsibility sits.
| Advantages | Disadvantages |
|---|---|
| Quick decisions (no escalation needed) | Can violate unity of command |
| More effective managers, democratization | Risk of misuse of power |
| Improved morale of personnel | (Inconsistency across units) |
Security angle: the eternal CISO question — central security team (consistent, but slow and far from the business) vs. decentralized security officers in each unit (fast and close, but inconsistent). Most large organizations use a hybrid: central policy-setting (fachgebundene Richtlinienkompetenz), decentralized implementation.
Go deeper:
Decentralization (Wikipedia) — delegating authority downward, and the incentive/information trade-offs behind the choice.