Advantages of Decentralization

Advantages of Decentralization

Advantages of Decentralization are timely decision making, informed decision making, ownership of decisions, and culture of responsibility, positive impact on performance and exposure to the operational management.

1.    Timely Decision

In decentralization approach different operational decisions are made in time. Timely decision making saves many direct & indirect costs for the organization.

2.    Informed Decision Making

Decentralization improves informed decision making, because operational decision are made by operational manager, who have more relevant and detailed knowledge of operations.

3.    Ownership of Decisions

Decentralization improves the sense of ownership within organizations .They takes the responsibility for their decision making.

4.    Responsibly & performance

Decentralization brings the responsibility in the operational management and thus performance at operational level improves.

5.    Exposure to Operational Management

Decentralization improves the confidence of the local management. It also give exposure to the local management. This exposure can be helpful for their career development.