Which of the following is an advantage of decentralization in a business organization?

• A. Faster decision-making at lower levels of management
• B. Reduced need for management training
• C. Increased central control over operations
• D. Greater uniformity in company policies

Answer: (A)

Verified step by step guidance

1. Understand the concept of decentralization: Decentralization refers to the delegation of decision-making authority to lower levels of management within an organization. It contrasts with centralization, where decision-making is concentrated at the top levels of management.
2. Analyze the advantages of decentralization: Decentralization allows lower-level managers to make decisions quickly without waiting for approval from higher management. This can lead to faster decision-making and improved responsiveness to local conditions.
3. Evaluate the options provided: Consider each option in the context of decentralization. For example, 'Faster decision-making at lower levels of management' aligns with the benefits of decentralization, while 'Reduced need for management training' and 'Increased central control over operations' do not align with the concept.
4. Consider the implications of decentralization on company policies: Decentralization may lead to less uniformity in company policies because decisions are made at various levels, which contrasts with the option 'Greater uniformity in company policies.'
5. Select the correct answer based on the analysis: The advantage of decentralization that matches its definition and benefits is 'Faster decision-making at lower levels of management.'