Benefits-Drawbacks

What Is Downward Communication ?

It is just opposite of upward communication (where message flows from lower to top level of management). Downward communication is a type of communication process in which information, messages, orders and instructions are flow or transmitted vertically down from top management to bottom by following proper chain of command (From top management to middle level management to lower level management to subordinates) in the organization. This communication is helpful in maintaining better chain of command and discipline in the company.

Benefits Or Advantages Of Downward Communication

The main advantages of downward communication can be highlighted as follows:

1. Easy To Assign Duties And Responsibilities

In downward communication, instructions and messages directly comes from the top authority which is helpful to assign jobs and delegate authority and responsibility to different levels of management.

2. Maintenance Of Better Discipline

Another advantage of downward communication is that it follows strict chain of command in the workstation and all members should follow the instructions and orders received from top management. So, it helps to maintain proper discipline in the organization.

3. Increased Efficiency

Subordinates get clear instructions, suggestions and guidance from higher management. It helps to increase efficiency and performance at work which helps to achieve organizational goals effectively.

4. Avoids By-passing

As we know that upward communication system suffers from the problem of by-passing of hierarchy due to the lack of proper chain of command. But downward communication minimizes this risk because there is formal chain of command in the organization.

5. Effective Process

Management can clearly explain organizational goals, policies and procedures more clearly through downward communication. Instructions and orders can be issued more effectively than other forms of communication methods. Therefore, it is more effective process of communication while comparing to others.

Drawbacks Or Disadvantages Of Downward Communication

The main disadvantages of downward communication can be described as follows:

1. It Lacks Flexibility

Downward communication is a one way process in which information flows from top to bottom only. Employees cannot give suggestions and share their ideas with upper level managers. Therefore, this process lacks flexibility.

2. Time Consuming Process

Another drawback of downward communication is that it is time consuming process. Information, messages, orders and instructions pass through different levels of management before reaching to the subordinates. Therefore, operational activities may be hampered because of the delay in transmission of information. 

        Also Read: 

Advantages And Disadvantages Of Horizontal Communication

Advantages And Disadvantages Of Upward Communication

3. Low Morale And Motivation

Because of its directive nature, it discourages employee participation and dos not allow them to provide suggestions and views to the management. It may create frustration, decrease motivation and morale of the subordinates.

Pros And Cons Of Downward Communication In Short

Pros:

- It ensures proper delegation of authority, responsibilities and assignment of jobs

- It improves efficiency and boosts employee performance

- It discourages by-passing of hierarchy in the organization

- It gives clear explanation of plans and procedures of the company

- Management can monitor and control employees' activities

- Better discipline can be maintained because of better supervision and control.

Cons:

- It is a time consuming process

- It does not promote subordinate participation in the decision making process

- There is a chance of employee frustration, decreased morale and motivation

- There is no flexibility in this process of communication

- It lacks employees enthusiasm

- There may be a possibility of distortion of message because of long transmission process

What Is Upward Communication ?

It is a type of communication in  which information or message flows vertically from lower level subordinates to upper level management. Upward communication encourages lower level employees to provide suggestions and ideas so the top management can make proper plan and sound decisions. It is most commonly used in modern organizations because it overcomes the limitations of traditional  communication system.

Benefits Or Advantages Of Upward Communication

The main advantages of upward communication process can be described as follows:

1. Better Relations Between Superiors And Subordinates

In upward communication, subordinates are allowed to share their feeling, problems and opinions with superiors. It helps to build trust and sense of harmony between management and employees . So, this communication process helps to make good superior subordinate relations in the organization.

2. High Employee Morale

Another advantages of upward communication is that it helps to increase motivation and morale of subordinates because it encourages the subordinates to give suggestions and views to the management. It  promotes employee participation which makes them feel valued. Therefore, it improves motivation , morale and job satisfaction.

3. Better Decision Making

Top level management get important data and information from lower level management and subordinates through this communication process. So, it helps the management to make sound and perfect decisions.

4. Formulation Of Plans And Policies

As we know that top management collects useful data, information, suggestions and ideas from lower level management and subordinates through upward communication. These information are very helpful to develop future plans and policies of the company.

5. Better Working Environment

Because of two way communication and employee participation and better superior subordinate relation, it creates better working environment in the organization. Good working environment increases efficiency and performance of the employees which helps to increase productivity as well as profitability of the organization.

Drawbacks Or Disadvantages Of Upward Communication

Some of the notable disadvantages of upward communication process can be described as follows:

1. Possibility Of Manipulation Of Data

Subordinates may manipulate data and provide edited information to hide their mistakes. In this situation top management get wrong information which may lead to wrong decisions.

2. Discouragement

Sometimes subordinates may not get positive response from their superiors. It may discourage them and they may loss confidence.

Some autocratic or traditional types of leaders do not want to take suggestions and ideas from their subordinates. In this situation, employees may not want to communicate with their managers because of the fear of negative reaction.

        Also Read: 

Advantages And Disadvantages Of Downward Communication

Advantages And Disadvantages Of Horizontal Communication

4. Difficult To Maintain Discipline

Another disadvantage of upward communication is that it is very difficult to maintain better supervision and discipline. Because of the open communication, more freedom to subordinates and friendly behavior of managers, it may be difficult to maintain proper chain of command and discipline in the organization.

5. Slow Movement

In this communication system, information flows slowly from lower level to upper level of management. Therefore, it may not be suitable for the top management to make quick decisions at the time of emergency.

Pros And Cons Of Upward Communication In Short

Pros:

- It provides valuable information and suggestions to the management.

- It helps to make good management-subordinate relationship

- It is useful for the development of plans and policies

- It increases employees' motivation and morale

- It helps to create good working environment

- It facilitates sound decision making

- It promotes sense of cooperation and harmony in the workstation

Cons:

- There is very slow movement of information

- Subordinates may manipulate the actual data and provide false information to the management

- There may be a lack of proper discipline in the organization

- Managers may neglect subordinates' suggestions and opinions

- Employees may hesitate to communicate with their bosses because of the fear of negative response

- Subordinates may by-pass their immediate superiors

 What Is Decentralization ?

Decentralization is a type of organization set up in which authority and power is delegated to the middle and lower level management. It is just opposite of centralization where decision making authority is reserved in the top management. In this structure departmental heads, branch managers, section officers etc. can make routine decisions without consulting higher level managers. It is suitable for large sized and complex types of organizations because single management or authority cannot manage entire organizational activities.

Benefits Or Advantages Of Decentralization

Some of the notable advantages of decentralization can be expressed as follows:

1. Decreases The Workload Of Top Authorities

One of the main advantages of decentralization  is that it reduces the work burden of  top management because some of the managerial responsibilities, authority and power are delegated to the lower level authorities. So, it helps to minimize the load of top authorities.

2. Quick And Better Decision Making

In this type of organizational setup, decision making authority is delegated to the departmental heads who are closer to the level of operation. It helps to make quick and wise decisions. Prompt and better decision making helps to cope with the situation and solve the problems wisely and quickly. 

3. Facilitates Specialization

Highly qualified, skilled, experienced and specialist personnel are appointed as middle and lower level managers to manage and control different branches, departments and units. So, decentralization brings specialization in the organization.

4. Suitable For

This organizational setup is appropriate for the following types of organizations:

* Having large volume of production

* Organizations with several functional units and departments

* Organizations having large number of staffs

* Large sized organizations with adequate resources

5. Increased Motivation And Satisfaction

It gives freedom to the middle and lower level managers and subordinates to make decisions. It helps to enhance skills, efficiency and potential of the subordinates. It provides the opportunity for growth and development. Therefore, decentralization increases motivation, morale and job satisfaction.

6. Increased Productivity

Because of specialization, increased motivation and high employee morale, it helps to improve employee performance and operational efficiency. Better performance and high efficiency leads to increase in the productivity of the organization.

7. Better Supervision And Control

In decentralization, subordinates and supervised and controlled by the concern managers or departmental heads. Lower level managers have full authority to monitor and control their immediate subordinates. Therefore, it is possible to maintain better discipline and control in the decentralized organization.

Drawbacks Or Disadvantages Of Decentralization

Some of the major disadvantages of decentralization can be expressed as follows:

1. Complex And Expensive

This structure is more complex than centralization because of different branches, departments and different levels of management. It requires more capital and operational costs to manage decentralized organizations because of more operational activities, more employees and complex design. So, it is complex and expensive organizational setup.

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Advantages And Disadvantages Of Centralization

Difference Between Centralization And Decentralization

2. Not Suitable

Decentralization is not appropriate for following types of organizations:

* Small organizations having limited volume of production

* Organization having less numbers of employees

* Organizations with less functional units

* Not suitable for specialized services

As we know that decision making power is delegated to the middle and lower level authorities in decentralization. If lower level managers are not capable of making wise decision, it may increase the risk of mismanagement and organization may have to bear huge loss.

4. Lack Of Coordination

Another disadvantage of decentralization is poor coordination. It is very difficult to maintain proper coordination between different functional areas and different levels of management because of its complexity. Due to the lack of coordination, there is a chance of conflict, misunderstanding and duplication of effort.

5. Communication Problem

Because of the coordination problem, it is difficult to establish better communication among departments, managers and subordinates in the organization. Lack of communication may create confusion in the workplace. Poor communication may hamper the efficiency and productivity of the firm.

Pros And Cons Of Decentralization In Short

Pros:

- It minimizes the burden of the top executives because responsibilities and roles are dispersed

- It promotes specialization, growth and diversification

- It is appropriate of large organizations with more resources and various operations

- It improves employee motivation and morale

- It facilitates prompt decision making

- It ensures the maintenance of better supervision, discipline and control

Cons:

- It is complex and costly structure

- It is not suitable for small firms with limited activities and resources

- It lacks proper coordination

- There is a possibility of conflict, misunderstanding and communication problem in the organization

- It lacks uniformity

 What Is Centralization ?

Centralization is a traditional type of organization set up in which power and authority such as decision making, planning, policy making, supervision, direction, resource allocation etc. are exercised by the higher level management. It is commonly practiced by small organizations having fewer resources, finance and employees. Managerial activities are handled by superiors and other members (lower level managers and subordinates) are responsible for operating activities.     

Benefits Or Advantages Of Centralization

Some of the notable advantages or centralization are as follows:

1. Simple Structure

This organizational structure is easy to set up and understand. Roles and responsibilities of each member is clearly defined and the subordinates are accountable for only one boss which helps to eliminate confusion, misunderstanding and duplication of work.

2. Cost Efficient

Centralized organizations requires less expenses, less resources and fewer number of employees because of single authority. Therefore, centralization is more cost effective than decentralization.

3. Suitable For

Centralization is suitable for the following conditions:

* It suits for small firms having less operational activities and fewer number of employees.

* It is suitable for those companies which cannot invest more capital and resources

* When subordinates are incompetent and require close supervision, direction and supervision.

4. Quick Decisions

Another advantage of centralization is that it allows quick decision making because of single authority and reservation of power in the top management. Managers can make decisions without consulting other members in the organization. Quick decisions are very useful in the time of crisis and emergencies.

5. Secrecy

Top level managers do not share official matters with subordinates in centralized organizations. So, internal and private matters can be kept confidential. Therefore, centralization ensures proper secrecy and privacy.

6. Better Quality Of Work

Because of clear chain of command, standardized system and better supervision in the workplace, employees' performance and efficiency will be improved. Improved performance leads to improve in the quality of work and productivity of the firm. 

7. Proper Control

As we know that centralization is exercised by small firms having less activities and fewer number of employees. So, it is easier for the management to maintain better control and discipline in the organization. 

Drawbacks Or Disadvantages Of Centralization

Disadvantages or constraints of centralization can be described as follows:

1. Over Burden To The Managers

In centralized organization structure, power and responsibilities are given to top level managers. So, managers have to handle entire organizational activities which may lead to overburden and they cannot give sufficient time for other important functions such as policy making, business expansion etc.

2. Not Suitable

Centralization is not appropriate for large organizations having various activities and more employees. It is also not suitable if the subordinates are skilled, educated and experienced because they do not need more guidance and instructions.

      Also Read: 

Advantages And Disadvantages Of Decentralization

Difference Between Centralization And Decentralization

3. Lack Of Specialization

Because of the sole authority and concentration of power in the center, it discourages specialization in the organization. Lack of specialization may lead to decrease in the performance and productivity of the firm.

Due to the lack of specialization, there is no scope of growth and development opportunity for the employees. It may decrease the motivation and morale of subordinates. Decreased morale may lead to decrease in job satisfaction and increase the rate of employee turnover.

5. Possibility Of Dictatorship 

Because of the bureaucratic management and concentration of power, there is a high chance of misuse of power and dictatorship in centralized organizations.

6. Lower Productivity

Due to the lack of specialization and strict control, employees may be dissatisfied. Employee dissatisfaction negatively affect their performance which leads to decrease in the productivity and profitability.

Pros And Cons Of Centralization In Short

Pros:

- It is simple and cost effective organizational structure

- It is suitable for small firms which cannot afford more investment

- It allows prompt decisions at the time of emergency

- It ensure strict secrecy and privacy 

- It ensures better quality of work because of proper supervision, monitoring and control

- There is a clear chain of command 

Cons:

- It increases the workload of the superiors

- It lacks specialization and division of work in the workstation

- Managers may misuse their power

- Employees' morale may be decreases due to the dissatisfaction

- There is no scope for growth and career development

- It is not suitable for large scaled organizations