Infocom has diversified itself into several product lines: Telecommunications, Engineering, financial services. Each subsidiary is self-sufficient with their-own administrative functions, propagating the belief that people can assume the reSQPonsibility for the effective implementation of their decisions and should be given autonomy. This has reduced the need for direct supervision by superiors, has promoted flexibility, initiative and faster decision making. The orders of customers are never delayed, as a result of good policy decisions of top management.
(a). Identify and explain any two points of importance of the concept being discussed above.
(b). Name and briefly explain a suitable framework for the company within which the managerial and operating task are to be performed.

Explanation

a). Importance of Decentralisation are
1. Develops initiative among subordinate- It helps to promote- self-reliance & confidence among subordinates.
2. Develops managerial talent for the future- Decentralisation gives subordinates a chance to prove their abilities & creates a reservoir of qualified workforce.
3. uick decision making- Since decisions are taken at the points of action. Therefore, no approval of superiors & leads to quick decision making.
4. Relief to top management- Decentralisation diminishes the amount of direct supervision exercised by superior over his subordinates because they are given freedom to act within the limits set by top management & top management can concentrate on important policies.
b). Divisional structure- In a divisional structure, the organisation structure comprises of separate business units or divisions. Each division is self-contained as it develops expertise in all functions related to a product line