i) To improve local decision-making: An organization may decide to decentralize its activities if it desires to improve decision-making at the branch or local levels. The emphasis may be on the fact that local managers are in close touch with the day-to-day operations and can make more informed and speedier decisions.

ii) Concentrate on strategic decisions: An organization may decentralize its activities if it intends to relieve central management from divisional activities to enable them to concentrate on more strategic decisions affecting the organization.

iii) To improve communications: By decentralizing its activities, the organization reduces response time with communication flow at the local level so that actions can be taken more swiftly.

iv) To motivate branch managers: An organization that decides to decentralize its activities may do so with the aim of motivating managers at the divisional and branch levels to feel that they are part of the decision-making machinery in the organization, hence increasing their motivation.

v) To develop skills: An organization may decentralize its activities if it intends to develop managerial ability at the divisional or lower levels because managers at the lower level will have the opportunity to make challenging decisions that previously may have been made by those at headquarters.

vi) To increase competitiveness: An organization may use decentralization as a strategy to increase its competitiveness, especially if it is serving a diversified and wider market.

vii) To allow participation: Organizations may use decentralization as a way to allow employees to be involved in decisions that affect them and their work.