Professional Documents
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Centralisation and Decentralisation
Centralisation and Decentralisation
Centralised
All decisions are made by senior managers at the centre of the organisation and passed down
through the chain of command.
Decentralised
Businesses spread decision-making across managers in branches and smaller divisions of the
business so that more employees are involved in the decision-making process.
Centralisation
Pro Con
Clear chain of command Inflexible
Reduced costs Encourages dictatorship
Improved quality of work Limits communication
Decentralisation
Pro Con
Facilitates diversification Co-ordination difficulties
Motivation promotion Waste of resources
Quick decision making Lack of qualified managers
Yes = Centralised
No = Decentralised
No = Centralised
Yes = Decentralised
Noah Healey HR Centralisation and Decentralisation 25/03/2022
Slower = Centralised
Quicker = Decentralised
Yes = Centralised
No = Decentralised