What are the factors which necessitate decentralisation?

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Distribution of authority or dispersion of authorities is termed as decentralisation. The necessity of decentralisation of authorities is felt due to the following reasons:

  1. The departments and plants are scattered.
  2. Increased volume of production and organisational activities.
  3. The activities are complex and round about.
  4. Diversified nature of products and market.
  5. Expansion and growth of business.

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