An expansion procedure to design partially decentralized controllers was re
cently proposed. This method requires the operation of pseudo-inverse of no
n-square matrices, which is not unique. Thus, it introduces an extra design
freedom, which was not addressed in the previous studies. In this paper, t
he effect of the pseudo-inverse on the stability and performance of 2 x 2 p
artially decentralized control systems is studied. Specifically, the range
of the pseudo-inverse factors arising from the stability condition of the c
ontrol system is derived. In addition, an 'ideal' pseudo-inverse factor, wh
ich minimizes interaction in the control system, is obtained based on the c
oncept of non-square block relative gain. Simulation results show that a pa
rtially decentralized controller with the 'ideal' pseudoinverse factor give
s an improved controller performance.