Decentralisation means dispersion of office activities. Dispersal of authority of decision-making power to the lower level of management is called decentralisation of authority. So decentralization occurs where the supervisor, delegates some of his controlling and supervising powers to the subordinates. The necessity of decentralisation arises due to scattered departments and plants, increased volume of activities, diversified nature of products and expansion of business activities. Decentralisation of authority is beneficial because it reduces the burden of top executives and facilitates diversification of activities.