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Unformatted text preview: Centralization versus decentralization The general pattern of authority throughout an organization determines the extent to which that organization is centralized or decentralized. A centralized organization systematically works to concentrate authority at the upper levels. In a decentralized organization, management consciously attempts to spread authority to the lower organization levels. A variety of factors can influence the extent to which a firm is centralized or decentralized. The following is a list of possible determinants: The external environment in which the firm operates. The more complex and unpredictable this environment, the more likely it is that top management will let low-level managers make important decisions. After all, low-level managers are closer to the problems because they are more likely to have direct contact with customers and workers. problems because they are more likely to have direct contact with customers and workers....
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This note was uploaded on 11/18/2011 for the course MGMT 4375 taught by Professor Eixmann during the Fall '11 term at Texas State.
- Fall '11