Question

The Board of Directors at Meet Geet Ltd. takes all major and minor decisions which often results in a delay in execution of work. To overcome this challenge, they decide to disperse the authority of decision making to all levels of management. Analyse any four ways in which this change will benefit Meet Geet Ltd.

Answer 1

1. Faster Decision Making: Decentralising decision-making allows for prompt decision-making at the level closest to the problem. This cuts down on delays and enables the organization to move more quickly in a cutthroat market.
2. Improved Efficiency: Daily problems are resolved more quickly when lower management has decision-making authority. Because managers may address issues independently without waiting for higher-ups’ approval, this improves operational efficiency.
3. Empowerment of Employees: Giving employees at all levels decision-making authority empowers them and raises their spirits. Additionally, it fosters a sense of accountability since they are trusted by the company to take care of crucial duties.
4. Better Adaptation to Market Changes: A decentralised structure enables the business to react faster to shifts in consumer demands or the market. A more adaptable and responsive company results from local managers’ ability to make decisions that are more in line with particular market conditions.