Decentralization of authority is based on the philosophy that the systematic and scientific delegation of authority to middle and lower levels of management. In other words, it is the systematic delegation of decision-making power to the concerned level where the work is to be performed. Decentralization refers to the participation of employees in the decision-making process. It is optional and suitable for the research oriented and creative jobs where the employees are disciplined, skilled and trained.

According to Louise A. Allen,” Decentralization is the systematic and consistent delegation of authority to the level where the work is performed.”

Similarly in the word of Dale S. Beach ,” Decentralization means placing the authority and decision-making power as close as possible to the level at which the work is done.”

In conclusion, we can say that decentralization of authority is the process of systematic and scientific delegation of authority to the operating level of staff for better performance. It is the process of placing the decision-making power to lower level subordinates is called decentralization of authority.