What is decentralization?

We explain what decentralization is and the types that exist. In addition, what are its advantages and educational decentralization.

1. What is decentralization?

Decentralization is the atomization of power within a company, state or organization . This necessarily implies that responsibilities are also dispersed.

The objective of decentralization is that power (and decision making ) is not concentrated in a few people or areas and is delegated to areas with less hierarchy , granting them greater autonomy and freedom .

Decentralization helps make decision-making more agile , especially when a problem arises that must be solved quickly. In addition, it works as an incentive for lower-ranking employees, who feel more involved in the organization .

Decentralization, on the other hand, implies that senior employees should not overload information or responsibilities, but instead focus on certain areas or issues.

2. Types of decentralization

There are different types of decentralization. Some of them are as follows:

• Horizontal. The power is distributed among areas that have the same level.
• Vertical. Power is distributed to lower levels (delegation).
• Territorial. Decision-making is granted to an entity or area that decides on a delimited territory.
• Functional. Certain competencies of a certain sector of activity to a certain area are recognized .
• Fiscal. It aims at greater efficiency in financing and in the quality of public services . This type of decentralization seeks the balance of expenses , taxes and transfers between different governments .

Within the business field, two types of decentralization can be identified:

• Macroeconomic The distribution of power is given to other countries and results in the consolidation of regional administrations that acquire economic and political authority.
• Microeconomic Decision making is distributed among different areas and hierarchical levels of the company or organization.

3. Advantages of decentralization

Some of the advantages attributed to decentralization are:

• Streamlines decision making and encourages the input of members soaked in the subject.
• It causes costs to be reduced in relation to coordination thanks to the independence acquired by the different areas.
• It allows people who are responsible for decision making to have a greater volume of information because they focus on a few areas, which allows them to handle issues in greater depth.
• It allows the organization’s leadership to disregard certain issues and focus on the transcendental.
• It makes better use of staff skills and times.
• Provides training and training to the middle ranks.
• It motivates the mid-range staff, who feels part of the decision-making processes and can plan a career within the organization with growth expectations.
• It makes control processes more efficient.
• It facilitates and clarifies the evaluation of the results.

4. Educational decentralization

Educational decentralization refers to the transfer of resources and the control of the education system from national states to provincial or jurisdictional ones.

With decentralization, educational institutions are transferred to the orbit of each province or jurisdiction and their financing, control, teachers , management , school plans and titles depend on them .

The decentralization of education aims to create a more participatory, agile, efficient and effective system to obtain a better educational quality, streamline public management and achieve fiscal “relief” by the central government.