Chapter 3C - CENTRALIZATION AND DECENTRALIZATION
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Chapter 3C - CENTRALIZATION AND DECENTRALIZATION

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Chapter 3C - CENTRALIZATION AND DECENTRALIZATION Presentation Transcript

  • 1. -When decision making tends to be concentrated, centralization is present. -When decision making tends to be dispersed, decentralization is present.
  • 2.
    • -A business that adopts a policy of placing major decision making authority and control in the hands of a few top level executives.
  • 3. PRESIDENT WESTERN DISTRICT MANAGER SOUTHERN DISRTICT MANAGER EASTERN DISTRICT MANAGER PRODUCTION SALES CENTRALIZED ORGANIZATION STRUCTURE
  • 4.
    • -A decentralized organization structure stresses delegation of decision making and lightens the load of top managers.
  • 5. PRESIDENT WESTERN REGIONAL DISTRICT MANAGER SOUTHERN REGIONAL DISTRICT MANAGER EASTERN REGIONAL DISTRICT MANAGER PRODUCTION SALES PRODUCTION SALES S PRODUCTION SALES DECENTRALIZED ORGANIZATION STRUCTURE
  • 6. -Duplication of functions is minimized. -High qualified specialists can be utilized. -Decision making is concentrated.
  • 7. -It lightens the load of top managers. -Intimate personal ties and relationships are promoted. -Efficiency is increased.
  • 8.