Discuss the advantages and disadvantages of decentralization
What will be an ideal response?
The advantage of decentralization is that it promotes flexibility and responsiveness by allowing lower-level managers to make on-the-spot decisions. Managers remain accountable for their actions but have the opportunity to assume greater responsibilities and take potentially successful risks.
The downside of decentralization is that if so much authority is delegated that managers at all levels can make their own decisions, planning and coordination become very difficult. Thus too much decentralization may lead an organization to lose control of its decision-making process.
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