Decentralization: It is a process of by which the decision making authority and responsibility is transferred to the lower levels in the organizational hierarchy. In other words it can be defined as a process in which the decision making authority does not remain with the top management of the company or remains centralized but is divided into various levels in the organization (Oyugi, 2000).
Leadership: It is an act of leading a group or an organization as a whole by an individual. It is a process of influencing the actions of other people through the use of interpersonal dynamics. It is the ability of bringing the diverse people together for achieving the common goals.
Here in this report the topic of discussion will be “the increasing trend of decentralization of decision making responsibility, authority and accountability affects the position of an individual as a leader in an organization”. The contents of this report are collected from varied sources like journals, articles and free online sources.
Leadership and Decentralization: Leadership is essential for the success of any organization as it helps in transforming the potentials into reality. The companies become competent by having better leaders which helps in developing better employees (Kerr, 2006). Leadership is a coherent part of a team and a leader is given authority for the accomplishment of goals set by the organization. Authority is not given alone to the leaders is comes with responsibility for the actions taken by the leaders (Chang, 2000). Thus authority has limits for obtaining the desired performance form the subordinates. Authority alone cannot achieve the desired objectives as it is highly relied on influence so for the achievement of objectives by the organization leadership is essential (Siggelkow, 2003).