Monday, June 11, 2012

Difference between centralization and decentralization



More Centralization More Decentralization
  • Environment is stable
  • Lower-level managers are not as capable or experienced at making decisions as upper-level managers.
  • Lower-level managers do not want to have say in decisions
  • Decisions are significant.
  • Organization is facing a crisis or the risk of company failure.
  • Company is large.
  • Effective implementation of company strategies depends on managers retaining say over what happens.
  • Environment is complex, uncertain.
  • Lower-level managers are capable and experienced at making decisions.
  • Lower-level managers want a voice in decisions.
  • Decisions are relatively minor.
  • Corporate culture is open to allowing managers to have a say in what happens.
  • Company is geographically dispersed.
  • Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions

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