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What are the advantages of divisionalisation / decentralisation?

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Final answer:

Advantages of divisionalisation / decentralisation include high consumer satisfaction, large variety of goods/services, decentralized decision making, little government interference, individual freedom, and ability to adjust to change gradually.

Step-by-step explanation:

Advantages of divisionalisation / decentralisation include:

  1. High consumer satisfaction: When an organization is decentralized, decision-making is brought closer to the customer. This allows for quicker response times and better customization of products and services, resulting in higher customer satisfaction.
  2. Large variety of goods/services: Decentralization allows for specialization and expertise in different regions or divisions. This leads to a larger variety of products and services being available to customers.
  3. Decentralized decision making: Divisionalisation/decentralisation empowers individual divisions or units to make decisions that are best suited to their specific circumstances. This increases flexibility and adaptability to changing market conditions.
  4. Little government interference: In a decentralized system, there is less government intervention and bureaucracy. This allows organizations to operate with more autonomy and freedom.
  5. Individual freedom: Decentralization gives individuals within an organization more autonomy and the ability to take ownership of their work. This can lead to increased job satisfaction and motivation.
  6. Able to adjust to change gradually: In a decentralized system, changes and innovations can be implemented gradually at the divisional level. This reduces resistance to change and ensures a smoother transition.

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