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Chapter 3C - CENTRALIZATION AND DECENTRALIZATION

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Aizell Bernal
Aizell Bernal

Centralization and decentralization refer to how decision making authority is distributed within an organization. A centralized structure concentrates authority among top executives, while a decentralized structure delegates more decision making authority throughout lower and regional levels. Centralization minimizes duplication and allows for specialized expertise but heavily involves top managers, while decentralization lightens the load on top management and promotes local relationships and efficiency at the cost of some duplication.

BusinessTechnology
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-When decision making tends to be concentrated, centralization is present. -When decision making tends to be dispersed, decentralization is present.
[object Object]
PRESIDENT WESTERN DISTRICT MANAGER SOUTHERN DISRTICT MANAGER EASTERN DISTRICT MANAGER PRODUCTION SALES CENTRALIZED ORGANIZATION STRUCTURE
[object Object]
PRESIDENT WESTERN REGIONAL DISTRICT MANAGER SOUTHERN REGIONAL DISTRICT MANAGER EASTERN REGIONAL DISTRICT MANAGER PRODUCTION SALES PRODUCTION SALES S 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.
 

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Chapter 3C - CENTRALIZATION AND DECENTRALIZATION

  • 1. -When decision making tends to be concentrated, centralization is present. -When decision making tends to be dispersed, decentralization is present.
  • 2.
  • 3. PRESIDENT WESTERN DISTRICT MANAGER SOUTHERN DISRTICT MANAGER EASTERN DISTRICT MANAGER PRODUCTION SALES CENTRALIZED ORGANIZATION STRUCTURE
  • 4.
  • 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.