Question

What Are the Advantages and Disadvantages of Decentralization?

Answer 1

The following are the advantages and disadvantages of decentralization

Advantages:

1. It reduces the burden on the top management.
2. It enables faster decision making
3. It helps in evaluating the performance of different sections of the company.
4. It helps in better supervision and control.

Disadvantages:

1. There is a lack of uniformity in the policies followed.
2. There will be a problem of coordination
3. It will require hiring of trained and qualified personnel
4. It will increase the financial burden on the organisation
5. It can create conflict among the managers of different divisions

Also read:

• What Is Decentralisation
• Types of Organisation Structure
• Difference Between Centralization and Decentralization

Stay connected with BYJU’S for more such questions and answers on various commerce topics.