What is Decentralization definition/concept

The concepts of right, left and center serve to locate us in space and, at the same time, refer to political and organizational issues. As a general criterion, a decentralization process occurs when an institution does not concentrate all the power and gives other bodies some autonomy. Decentralization

In the realm of state and politics

Most nations have a two-dimensional state structure . On the one hand, there are a number of institutions that are organized centrally and whose main headquarters are located in the country’s capital. On the other hand, there are state bodies throughout the territory that are administered with autonomous criteria.

A decentralized state is one in which institutions meet the needs of citizens directly and closely, without the administrative supervision of a central body. Decentralization

Countries with autonomous governments in their territory are defined as decentralized (Spain, United States and Germany are examples of this model). On the contrary, France is a nation organized with centralized criteria.

Most political parties also have a dual organizational structure. On the one hand, the party has a leader , a central headquarters and a series of areas that are organized centrally. At the same time, the same party has some delegations with some autonomy in different territories.

in the business field

The scheme of state and politics can be extrapolated to the business world. Large multinationals have a central headquarters where strategic decisions are taken and, at the same time, several delegations with a certain degree of independence in their management model . Decentralization

In simple terms, it can be said that at a company’s headquarters, decisions are made on what should be done and on how to do it in its various delegations. To be effective it is necessary to create an organizational design that defines the departments, divisions and subsystems of the entity. These areas form layers or hierarchical levels of authority.


The business decentralization process is related to outsourcing, also known as subcontracting or outsourcing.

This way, when a company does not have enough capacity to carry out certain activities or needs some unavailable resources , it has the option of hiring an external company. Decentralization

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *


Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker