Decentralization is generally appropriate for compa¬ nies that

• are mature.

• are large.

• are in a growth stage of product development.

• are expanding operations rapidly.

• can financially withstand incorrect decisions.

• have high confidence in the employees’ decision¬ making ability.

• have widespread operations.

• want to challenge, motivate, and mentor em¬ ployees.

• require rapid response to changing conditions or opportunities. LO.1