Step 1: What decentralisation changes.
Decentralisation pushes decision making authority down closer to where the actual work happens, and this shift brings a few clear advantages.
Step 2: Quick decision making.
Because lower level managers no longer have to wait for approval from the top for routine matters, decisions at the operating level get taken faster, without files travelling up and down the hierarchy.
Step 3: Develops initiative among subordinates.
When subordinates are trusted with real decision making power, they start thinking for themselves and take ownership of outcomes instead of just waiting for instructions, this builds confidence and initiative over time.
Step 4: Relief to top management.
With routine decisions being handled lower down, top management is freed from day to day operational matters and can spend its time and energy on long term strategy and policy issues that only they can decide. Together these benefits are why growing organisations lean towards decentralisation.