8 advantages of Decentralization for decision making and business growth. Decentralization of authority relieves top executives from operating details or routine work so that they can concentrate on more important functions of policy-making..
Decentralisation means diffusion of authority. The dispersal of authority of decision-making to the lower level management is termed as decentralisation. Decentralisation of authority is a fundamental phase of delegation and the extent to which authority is not delegated is called centralisation.
Distribution of authority or dispersion of authorities is termed as decentralization. The necessity of decentralization of authorities is felt due to the following reasons:
Decentralisation means dispersion of office activities. Dispersal of authority of decision-making power to the lower level of management is called decentralisation of authority.