Centralization and decentralization for MBA

3. AUTHORITY
POWER to exercise discretion in
making decisions affecting others
POSITION RESPONSIBILITY

4. Degree to which decision making is
concentrated to a single point in the
organization.

6. TYPES
PERFORMANCE
DEPARTMENTAL
MANAGEMENT
GEOGRAPHIC
CONCENTRATION
(OPERATING AT ONE
LOCATION)
CONCENTRATION OF
SPECIALIZED
ACTIVITIES FOR 1
DEPT.
RESRTICTS
DELEGATION &
DECISIONS .
HIGH DEGREE OF
AUTHORITY

7. MORE EFFICIENT
AVOIDS WASTAGE
AVOIDS DUPLICATION
SCALE OF ECONOMIES

8. MORE TIME TAKEN TO RECOGNISE
THE PROBLEM
DELAY IN DECISION MAKING
LESS EMPLOYEE CO-OPERATION ,
FREEDOM & JOB SATISFACTION

9. DELEGATION
OF
DECISION
MAKING
DISCRETION.

10. FLEXIBILITY OF
MANAGEMENT
EDUCATION OF
WORK FORCE
WILLINGNESS TO
PARTICIPATE & TAKE
RESPONSIBILITY

11. RELIEVES MANAGEMENT OF SOME BURDEN
QUICK ACTION & PROBLEM SOLVING
EMPLOYEES ARE INVOLVED & RESPONSIBLE
IMPROVES MOTIVATION

13. COMPETANT AND
SKILLED PEOPLE NEEDED
PROBLEMS OR CLASHES
INCREASED COST

15. •NOT JUST A DECISION
TAKEN BY HIGHER
MANAGEMENT.
•AFFECTS ALL AREAS OF
MANAGEMENT .
•ESSENTIAL ELEMENT OF
MANAGERIAL SYSTEM .
•NEEDS CAREFUL
CONSIDERATION.

16. Organization structure
Task
Policy guide for decision making
Expected outcome
Responsibility

17. •LOWER LEVEL EMPLOYEES
SIMPLY CARRY OUT THE ORDERS
•DECISION MAKING IS PUSHED
DOWN TO MANAGERS WHO
ARE CLOSEST TO ACTION

18. SPECIFIC DECISION SKILLED

19. CONTROL
• Avoids duplication
• Sharing resources
FREEDOM
• For end user
• Faster decision making

20. WHEN DE-CENTRALIZATION IS NOT
WORKING
PARTIAL