The decentralization of decision-making is essential for every company. In this article we will try to the concept of decentralization and of the reasons for carrying out this process. Concept for a moment, consider a company formed by a person, the decisions taken in the same can say, without fear of being mistaken, that they are totally centralized. From the moment that increases the number of people, begins a process of decentralization which may be higher or lower, depending on the extent that the decisions are taken at a hierarchical level plus or low inside the organization. In practice, a total decentralization, may not be always there must be a balance in the delegation of decisions that need to be the most appropriate to the size and structure of the company. Distribution of functions on an Organizacionla existence of various tasks within the business process, which require a certain degree of specialization, forcing firms to develop a functional organisational structure, such queles permitted undertake the tasks of production, sales, administration, management, financial, research, etc. However, not always is organized in a functional manner, also can be structured by business lines, products, processes or geographical areas.

The distribution of functions will depend on the strategy of the company, and the degree of decentralization who wants to have. For example, if you opt for a decentralized company you can create divisions, that facilitate the decision-making process. This comes to us either in the case of establishing profit centers, since they meet the two functions at the same time; What, on the other part, and taking into account the criterion of controllability, implies that the divisional director must have attributions on income and expenses of the division, since if not, could not be him responsible for the benefit.Although decentralization is think to automatically create a division involves the decision-making to the lowest level, while the creation of the division usually means that is establish an organizational unit around which a benefit is calculated on which that unit can operate.