An important difference between S&M Ltd and most other companies is that instead of
operating as one large corporation it operates as 180 smaller companies each focused on
a specific product and area, implying selective dispersal of authority, recognising the
decision makers need for autonomy, as decision making authority is pushed down the
chain of command. It enables the company to maintain short lines of communication
with customers and employees, and accelerate the development of talent. Identify the
philosophy that is being followed by S&M Ltd. through which it is dividing the decision-
making responsibilities among the hierarchical levels. State any five points of importance
of the philosophy identified.

Dear student, 
The philosophy identified as decentralisation. In Decentralisation big share of decision making is in the hands of lower level of hierarchy . Here Decision making is given a good amount of autonomy and responsibility. This will lead to redundancy of higher managerial positions. Importance of Decentralisation :
1) Developing Initiative among subordinates :- Decentralisation helps lower level employees boosting there morale and self reliance by giving authority and responsibility of decision making for betterment of their own and organisation and developing new and unique solutions of problems faced day to day.
2) Develops Managerial Talent for the Future: Decentralisation helps employees to prove their abilities to handle various new assignments by their own. Such abilities increases their knowledge and experience at all levels and develops managerial talent in the employees.
3) Quick Decision Making: Decentralisation helps to develops quick decision making power in lower level employees as they are very close to operation and know activities involved in their specific department .They can take decision more faster without any approval from various levels.
4) Relief for Top level Management : When all basic and day to day decisions taken by lower level management then it relieves top level managers and they can save more time and utilise this time to take more strategic actions for the growth of organisation
5) Better Control Decentralisation helps in evaluating performance of individuals as well as department as they are accountable and have responsibility of their work In this response better control systems such as balance scorecard and management information system are being evolved.
Regards

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