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CMA Foundation · Fundamentals of Business Economics and Management · Organisation Structure, Responsibility, Accountability and Delegation of Authority

Which of the following is a recognised advantage of decentralisation?

Faster decisions at the operating level and development of managerial talent are advantages of decentralisation. Managers close to the problem act quickly and gain decision-making experience. Uniform policy and easier coordination favour centralisation, and decentralisation in fact requires more capable managers.

  1. AUniformity of policy across all units
  2. BFaster decisions at the operating level and development of managerial talentCorrect
  3. CEasier coordination between departments
  4. DLower need for trained managers

Explanation

Decentralisation allows managers close to the problem to decide quickly and gives them experience, building future leaders. Uniformity and easier coordination are advantages of centralisation, and decentralisation actually needs more trained managers.

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