The Effect of Decentralization, Information Technology Utilization and Task Allocation on Managerial Performance

Abstract

Managerial performance within an organization is crucial, as effective performance contributes to the competitive advantage of the organization.  Although previous studies have investigated decentralization and information technology in relation to managerial performance, inconsistencies remain regarding the effect of decentralization, and limited research has examined task allocation together with these variables in a single model. Therefore, this study examines and analyzes the effect of decentralization, information technology application, and workload on managerial performance. This study employs a quantitative research method with a descriptive-verificative approach. Primary data were collected through direct observation of the research objects. The population consists of 750 people. Furthermore, the data collection technique used purposive sampling. In line with that, 48 samples were taken. The data analysis technique used multiple linear regression. The results show that decentralization has a positive effect on managerial performance and the information technology application did not affect managerial performance; similarly, workload did not affect managerial performance. In addition, the regression model is considered feasible and able to explain 30.3% of the variation in managerial performance. These findings indicate that effective delegation of authority can improve managerial performance, whereas the utilization of information technology and task allocation have not yet been optimally implemented to support managerial effectiveness.