Essay on Decentralization Of Human Resource Management

885 Words Oct 17th, 2016 4 Pages
Decentralization

What is decentralization?
Decentralization is a broad term with many applications. First used in 1846, it is defined as “the dispersion or distribution of functions and powers; specifically: the delegation of power from a central authority to regional and local authorities” (“Decentralization”). Decentralization is often hard to understand without discussing centralization. Centralization is defined as all decision making power concentrated in the hands of a primary authority. Decentralization is most notably used in the government and business sphere. A decentralized government spreads the decision making power over multiple local administrations, such as in a republic. Whereas, a centralized government is a single individual or small political group making all the decisions, such as a dictatorship. Decentralization in a business setting involves “the transfer of authorities, functions, rights, duties, powers and accountability of the top level management to the middle or low-level management. . .” (Surbhi). Therefore, decentralization of human resource management involves transferring the administrative functions of human resources across a distributed group of human resource personnel who report to division managers (a division is a “logical element or segment of a company, such as accounting, production, marketing, etc. representing a specific business function, and a definite place on the organizational chart, under the domain of a manager”)…

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