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We examined the perceived effect of division of labour on decision making in public and private universities in Uganda. Universities are by nature bureaucratic institutions which pose a fundamental question on how such organizational arrangements affect decision making in university systems. We adopted the descriptive research design with both qualitative and quantitative approaches. We used the Sloven Formula (1967) to determine the sample size of 373 for the study. To ensure representativeness for each category of respondents, we used simple proportions to obtain a sample representing each unit of the population. We analyzed the data collected using descriptive and inferential statistics in order to establish the effect of division of labour on decision making in public and private universities. We found out that there was an insignificant relationship between the division of labour and decision-making in both public and private universities in Uganda. Division of labour affects decision making in both private and public universities in Uganda. We therefore recommend that both public and private universities should endeavor to adopt the use of Division of labour to improve on decision-making in their management process.