Motors centralization vs decentralization increased

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Unformatted text preview: antages Skill Development Economies of Economies Scale Scale Good Coordination Lack of Communication Hard to tackle new situations Employees Identify with Employees Department rather than w/ organization as a whole organization Slow Response to External Slow Demands Demands Narrow Spets Narrow This was very bad for General Motors Centralization vs. Decentralization Centralization Decentralization Increased Uniformity Less Duplication using resources efficiently Taking advantage of Taking economies of scale; thus, cost per unit goes down cost Informed Decisions Worker Responsibility Few Layers/Faster Loss of Control Possible Duplication Maximum Control Lots of Policies & Lots Procedures Procedures Many Layers/Slower Span of Control Span Optimum number of subordinates a manager Optimum supervises or should supervise; supervises Usually between 7 and 15; (8 is bad) Can be increased when Jobs are routine and/or low skilled Information technology Greater managerial experience Jobs are uni...
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