chapter 3c - centralization and decentralization
DESCRIPTION
TRANSCRIPT
-When decision making tends to be concentrated, centralization is present.-When decision making tends to be dispersed, decentralization is present.
-A business that adopts a policy of placing major decision making authority and control in the hands of a few top level executives.
PRESIDENT
WESTERN DISTRICT MANAGER
SOUTHERN DISRTICT MANAGER
EASTERN DISTRICT MANAGER
PRODUCTION SALES
CENTRALIZED ORGANIZATION STRUCTURE
-A decentralized organization
structure stresses delegation of decision making and lightens the load of top managers.
PRESIDENT
WESTERN REGIONAL DISTRICT MANAGER
SOUTHERN REGIONAL DISTRICT MANAGER
EASTERN REGIONAL DISTRICT MANAGER
PRODUCTION SALES PRODUCTION SALESS PRODUCTION SALES
DECENTRALIZED ORGANIZATION STRUCTURE
-Duplication of functions is minimized.-High qualified specialists can be utilized.-Decision making is concentrated.
-It lightens the load of top managers.-Intimate personal ties and relationships are promoted.-Efficiency is increased.