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Asked Dec 22, 2019
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Name three benefits and two costs of decentralization.

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Step 1

Decentralization:

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The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels.

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Step 2

Benefits of decent...

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• The decentralization creates a sense of responsibility to the needs of subsidiary unit's customers, suppliers, and the employees. • It leads to a faster decision making as the sub-units and the lower levels can also make decisions and act accordingly. • As the managers of small units are given responsibility, the managers feel more motivated which helps them in their development. The sub-units or the lower levels also gain learning by this method. • The managers have a more concentrated focus. The managers of a sub-unit can also reach to the top level of the management.

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