---
title: "Techniques of administrative and market decentralization"
subject: "Construction Management"
chapter: 10
key: "semester_8/construction_management:decentralization-techniques"
source: https://www.bctengineer.com/q/semester_8/construction_management/decentralization-techniques
site: BCT Engineering
---

# Techniques of administrative and market decentralization

Construction Management · Chapter 10: Personnel Management

- Asked in: 2079 Jestha, 2 marks
- Video: [DECENTRALISATION,  DECONCENTRATION, DELEGATION , DEVOLUTION.UNDERSTANDING THE TERMS](https://www.youtube.com/watch?v=6F1Csba0jR0) — Political science and Public Administration 
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/construction_management/decentralization-techniques
- Whole chapter: https://www.bctengineer.com/md/semester_8/construction_management/chapter-10

## Question

What are the different techniques by which administrative and market decentralization can be achieved?

## Short answer

Administrative decentralisation is achieved through deconcentration, delegation, devolution and divisionalisation. Market decentralisation uses privatisation, outsourcing or contracting out, public-private partnership, deregulation and user participation.

## Answer

**Decentralisation** means spreading authority to lower levels. It can be of two kinds.

#### Administrative decentralisation
Authority is transferred within the same organisation or government. Techniques:
1. **Deconcentration:** shifting some functions and staff to regional or field offices, which still report to the centre.
2. **Delegation:** the higher authority gives defined decision-making power to subordinates (e.g. a site engineer sanctions small purchases), with accountability.
3. **Devolution:** powers are legally transferred to local bodies with their own resources (e.g. local governments in Nepal under the 2015 Constitution).
4. **Divisionalisation:** organising by project or product divisions, each with its own manager.

#### Market decentralisation
Responsibility shifts from the government or the head organisation to the private sector and the market. Techniques:
1. **Privatisation** of public enterprises.
2. **Outsourcing / contracting out** of services such as maintenance and operation.
3. **Public-private partnership (PPP),** e.g. build-operate-transfer (BOT).
4. **Deregulation:** giving the market freedom over pricing and supply.
5. **User participation** (e.g. users' committees in community projects).

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Deconcentration means:
   A. Shifting functions and staff to regional offices that still report to the centre
   B. Selling public enterprises
   C. Legal transfer of powers to local bodies
   D. Contracting out
   Answer: A. Deconcentration keeps reporting to the centre. (Key point: Deconcentration)

2. Devolution is:
   A. Privatisation
   B. Delegating small purchase power
   C. Outsourcing
   D. Legal transfer of powers to local bodies with their own resources
   Answer: D. Devolution legally transfers powers, e.g. local governments in Nepal. (Key point: Devolution)

3. Which is a market decentralisation technique?
   A. Public-private partnership / BOT
   B. Deconcentration
   C. Delegation
   D. Divisionalisation
   Answer: A. PPP, privatisation, outsourcing and deregulation are market techniques. (Key point: Market technique)

## Related in Construction Management

- [Fair market value of Tata Sipradi showroom](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Avalue-tata-sipradi-showroom) — Construction Management, chapter 13