Decentralization of authority has certain advantages, such as:1. Diversification of activities: Decentralization reduces the burden of the chief executives with making routine decisions. They can easily devote the time available for important activities such as diversification of products, raising necessary finance, obtaining licenses and starting new lines of production and solving crucial problems of the business concern, while less important and routine may be left to the middle and supervisory levels.2. Development of the Managerial Personnel: As the business grows in size, it requires the services of a large number of managers and here decentralization provides a training ground for the would-be managers. The managers learn by experience within the organization concerned.3. Effective Control and Supervision: Decentralization leads to effective control and supervision. Since concerned managers enjoy full authority to make changes in work assignment, to take disciplinary actions, to change production schedules or to recommend promotions, they are in a position to supervise the subordinates’ activities.4. Improvement of morale: Decentralization helps improvement of managerial ability which leads to an increase in their morale and this results in a higher productivity.