MANAGEMENT

Detailed explanation-1: -The main disadvantage of a decentralized organization is that you lose control over the day-to-day activities of your company. Maybe “lose” is too strong a word, but you are ceding authority to your managers, which means that you trust their instincts, skills, and talents.

Detailed explanation-2: -Decentralized decision-making is any process where the decision-making authority is distributed throughout a larger group. It also connotes a higher authority given to lower level functionaries, executives, and workers. This can be in any organization of any size, from a governmental authority to a corporation.

Detailed explanation-3: -Decision-making power is delegated to the lower level in Decentralization. If lower-level managers lack the necessary skills and abilities, they may make poor decisions that increase risks and cause losses.

Detailed explanation-4: -Conversely, decentralizing decision-making reduces delays, improves product development flow and throughput, and facilitates faster feedback and more innovative solutions. Higher levels of empowerment are an additional, tangible benefit.