Ideas in this flowchart

• Decentralization
• Decentralization pushes decision-making authority down the organizational hierarchy.
• Lower-level personnel receive more responsibility and power to make and implement decisions.
• Benefits of decentralization
• Risks of decentralization
• Decentralized decisions can be made more quickly.
• Decentralization can increase innovation and creativity.
• Decentralization can create greater organizational flexibility.
• Decentralization can accelerate the development of lower-level managers.
• Decentralization can increase job satisfaction and employee commitment.
• If lower-level personnel lack the necessary skills and training, they may perform ineffectively.
• Insufficient skills and training may lead to costly mistakes.
• Decentralization may produce inefficient communication lines, competing objectives, and duplicated effort.