Final answer:
Decentralization allows lower-level managers to gain experience, enables 'experts' in their areas to make informed decisions, and frees upper management to focus on strategy. It benefits the organization by improving satisfaction and agility.
Step-by-step explanation:
The concept of decentralization involves distributing decision-making powers away from a central authority. There are several benefits associated with decentralization in an organizational context:
- Lower-level managers gain valuable experience in decision-making, preparing them for more senior positions.
- Decentralized structures ensure that those closest to the action, essentially the 'experts' in their areas, are empowered to make decisions. This tends to lead to decisions that are more informed and attuned to local conditions.
- Decentralization frees upper management to concentrate their time on strategizing and on other high-level tasks, rather than getting bogged down in day-to-day operations.
With these points in mind, we can see that decentralized decision-making can lead to increases in employee satisfaction and agility, allowing the organization to adjust to changes more effectively.