Final answer:
The chief advantage of a decentralized organizational structure is to put decision-making authority in the hands of those closest and most knowledgeable about the situation. This enhances cross-unit coordination and creates a collegial, collaborative culture in which teamwork is valued.
Step-by-step explanation:
The chief advantage of a decentralized organizational structure is to put decision-making authority in the hands of those closest and most knowledgeable about the situation. This means that the people who are directly involved in a particular task or project have the power to make decisions and take action without having to go through multiple layers of management. This increases efficiency and allows for faster and more effective decision-making.
Decentralization also enhances cross-unit coordination and capture of strategic fits. By allowing different departments or units within the organization to have decision-making authority, it becomes easier for them to collaborate and coordinate their efforts. This leads to better alignment of strategies and goals, as well as the ability to take advantage of synergies between different parts of the organization.
Furthermore, a decentralized organizational structure creates a collegial, collaborative culture in which teamwork is a core value and decisions are made on the basis of consensus. When decision-making authority is shared among multiple individuals or teams, it promotes a culture of collaboration and encourages employees to work together towards common goals. This fosters a sense of ownership and commitment among employees, leading to higher levels of motivation and productivity.