Chapter 10

Chapter 10 - Chapter 10 Decentralization 1) Decentralized...

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Chapter 10 Decentralization 1) Decentralized Organization – decision making authority is not confined to a few top executives, it is spread throughout the organization. a) Avantages I. Delegating day to day problem solving to lower level managers allows top management to concentrate on bigger issues such as overall strategy. II. Lower level managers often have detailed and up to date information about their areas of responsibility than top management, and they are better able to make day to day decisions. III. Organziations can respond more quickly to customers and to changes in the operating environment by eliminating laywers of decision making and approvals. IV. Granting decision making authority to lower level managers helps train them for higher level positions. V. Empowering lower level managers to make decisions can increase their motivation and job satisfaction. b) Disadvantages I. Lower level managers may make decisions without fully understanding big picture. II. Coordination may be lacking among lower level managers.
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Chapter 10 - Chapter 10 Decentralization 1) Decentralized...

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