What is a major advantage of using a decentralized structure in an organization?

A major advantage of using a decentralized structure in an organization is that it facilitates faster decision-making. In a decentralized organization, decision-making authority is distributed among various levels and departments rather than being concentrated at the top. This allows managers closer to the operational level to make decisions quickly, responding to immediate needs without having to wait for approval from higher management.

The ability to act swiftly can enhance responsiveness to market changes and improve customer service, as individuals who are more familiar with specific challenges can address them promptly. This swift decision-making process can be particularly beneficial in dynamic and rapidly evolving industries, where the ability to adapt quickly can provide a significant competitive advantage.

In contrast, a centralized structure often results in slower decision-making because decisions must be funneled through higher levels of management, leading to potential delays in response time and reduced agility.