The document discusses decentralization in organizational structures. Decentralization means assigning authority and responsibility for decision making to lower levels of management. This allows for quicker decisions and better communication. An example given is Clarion University's student newspaper advertising services. Advantages of decentralization include reducing the burden on top executives, quicker decisions, growth and diversification, better communication, and developing executive skills.

1. Topic 6: What does the term ‘Decentralisation’
mean? What are the advantages of new ways of
organizational structures? Give an example for this
new organizational structure.
Group 5

2. Outline
I. Introduction
II. Content
2.1 Definition of Decentralization
2.2 Comparison between Centralization and
Decentralization
2.3 An examples of decentralization
2.4 Advantages of Decentralization
III. Conclusion

3. I. Introduction
• Organizational
structure:
- The outline of a
company’s
framework.
- Guidelines for
managing business
operations.
• Two main types:
centralization and
decentralization.

4. 2. Definition.
• Decentralization:
- the assignment of logical.
- the transfer of responsibility for
planning, management.
• Each level has the authority to act, promote
dynamism.
• Several individuals responsible for making
business decisions and running the business

5. Q: Two digrams of organizational structures.
Which is the diagram of Decentralization?
1 2
a.1
b.2
c.Both 1 and 2
d.Neither 1 nor 2

6. 3. Comparision.
Centralization Decentralization
- Making decisions and - Making decisions and
provide direction: provide direction:
One individual The numerous managers
- Applying: + Each manager is responsible
+ Small businesses for few employees and 1 or 2
+ the owner is responsible for job functions
everything.

7. 4. Example
Clarion University’s student newspaper advertising services.

8. 5. Advantages.
1. Reduces burden of top executives.
- Concentrate on more important functions.
- Extend leadership.
2. Quick and better decisions.
- Making accurate decisions without consulting
higher levels.

9. 3. Growth and diversification.
- Facilitate growth and diversification of
products and markets.
4. Better communication.
- Improve organizational communication.
- Reduce bureaucracy.
5. Development of executives.
- Make for stability and continuity of the
company.
- Promote autonomy, initiative and creativity of
subordinates.

10. 6. Improvement in motivation and morale.
- Improve the job satisfaction and morale of
subordinates.
7. Effective supervision and control.
- Result in effective supervision.
- Promote effective control.
8. Democratic management.
-Make flexible operation.

11. 6. Conclusion.
• Decentralized organizations are becoming
more popular.
• Decentralization is an organization's form of
freedom.
• Companies are able to take advantage of
decentralized structure to gain better
business growth faster.

12. Questions
Q: How many advantages were given in our
presentation?
a. 5
b. 6
c. 7
d. 8
Q: In our example, Clarion Call is...
a. A newspaper.
b. A store.
c. A person.
d. A city.

13. THANKS FOR LISTENING!