However the decision making process is faster in decentralized organizations

However the decision making process is faster in

This preview shows page 2 - 4 out of 4 pages.

However, the decision-making process is faster in decentralized organizations because
Image of page 2

Subscribe to view the full document.

CENTRALIZED AND DECENTRALIZED ORGANIZATIONS 3 decisions are taken much closer to the actions (Surbhi, 2015). Centralization works best for small-sized businesses, however, most large-sized companies prefer to use decentralized organizational structure because of faster decision making. In decentralized organizations, communication stretches in all directions. Conversely, in centralized organizations, formal communication exists. Further, in centralized organizations, there is full leadership and coordination while in decentralized organizations, the burden of leadership and coordination is shared among the top level managers. The disadvantage of centralized organizations is that the role of the junior staff in the company is reduced as the top level management makes all the decisions. Therefore, the subordinate employees are not to take part in any decision making processes. This might act as a hindrance to the achievement of organizational goals since the junior staff feels side- lined. Red-tapism and bureaucracy are other disadvantages of centralization (Surbhi, 2015).
Image of page 3
Image of page 4

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes