Question & Answer: How can decentralization improve motivation and retention? Thank you to those of you who hav…..

Decentralization in simple words refers to the delegation of work to the lower level. As a result of this, the employees at the lower level experience a sense of importance being granted to them as they get involved in decision making and other management activities. This adds to their motivation level and also provides a job satisfaction as now they are directly contributing to the growth and smooth operations of the company and in turn it helps the company to retain these employees as now they are more satisfied.

The erstwhile method of evaluating the performance of the employees was nothing but a one way communication from top level to bottom; however, the new systems on performance appraisal requires the employees to equally participate in the evaluation process thus providing a level of empowerment to them. Under this system, employees are required to rate themselves on their own performance as per their view, which would later be validated by their supervisors. Employees are also asked to align their performance to the overall key objectives of the company thus making them aware of the vision and mission of the company. There is a section under the performance evaluation system which focuses on the strengths and weakness of the employee. These weakness are being discussed with the supervisors and trainings and other initiatives are undertaken to overcome them. Thus the performance evaluation system ensures empowerment to the employees.