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Importance of Decentralizing Decision Making in Global Manag

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Explain the five reasons why a firm should decentralize its decision-making.(in terms of global management)

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This solution describes the five reasons why a firm should decentralize its decision-making.(in terms of global management).

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A decentralized organization allows managers to respond to environmental changes more quickly than in a centralized organization. This is because managers are in place, with an understanding of local culture, customs, and needs. In addition, managers are better able to gauge the response necessary based upon their experience in the country compared to a management team that is thousands of miles away.

A decentralized organization allows for more efficiency since actions do not need to be approved and cleared by top management. This allows local managers to react to situations quickly, without the delay of presenting an item to the management team, outline the ...

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Sally Baldwin, Ed.D
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  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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