A key advantage of a decentralized organization is quicker decisions and response time.
Decentralization of a company means that day-to-day business and decision-making authority is delegated from top management to middle and junior management, and sometimes team members.
An example of a decentralized organization is a fast food franchise chain. Each franchised restaurant within the chain is responsible for its own operations. Broadly speaking, companies start out as centralized.
A decentralized organization is one in which most decisions are made by middle or lower-level managers and not centrally by the top of the company. This is the opposite of a centralized organization where all decisions are made at the top.
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