Important of decentralisation is explained as follows:
(i) Relief to top management: In a decentralized organisation, top managers are not burdened by common day-to-day problems. They have enough time to plan ahead and develop new strategies.
(ii) Develops managerial talent for the future: In a decentralized organisation even lower level managers learn the art of exercising decision making authority. This prepares them for the promotion to the higher levels.
(iii) Quick decision making: In a decentralized organisation, decision making is not restricted in few hands only but decision power is entrusted with all the managers who perform the activities.
