Organizational structures can be categorized based on the delegation of both centralized and

decentralized groups with authority.

A central organization is one were selling products in excess of the need of the business is a common
sales activity. It entails working together with many departments that are relevant to it. The power to
manage, which the authority possesses, regulates, and concentrates on all organizational activities like
hiring, training, and performance reviews. Typically, this kind of structure makes it simple for the
management to oversee and make sure that the operations run smoothly.

The market products that the central organization sells are effective. In a centralized sales organization,
sales are averse to being granted decision-making power. This limits the freedom of potential clients.
These are the benefits and drawbacks of this kind of building. An organization benefits greatly from
having a centralized organizational structure.

Advantages of centralized organization structure:

- Centralization can be quite effective in terms of time and resources.

- This coordination avoids needless duplication of work and enables decision-makers to effectively
distribute tasks among diverse organizational components.
- The better decision-making because data is transferred up from all organizational levels to those
who make decisions.

Disadvantages of a centralized organization structure:

- Without an effective control system, good judgments are implemented badly and top-level
managers are unable to track the implementation of decisions.
- Demotivation, lack of space, and disloyalty lead to high turnover, making it difficult to achieve
personal initiative.
- As subordinates are expected to follow commands and judgments of superiors and develop into
whatever the leader wants them to be, a rigid work culture can make one feel like a machine.
- Executives have a lot of work to do when making judgments since they must take their time
coming up with solutions to difficult challenges.

Decentralized organization is one of those sales organizations that each has its own sales methods
to sell the product. The initiators who manage it are the authorities and The Sales Organization
Basics of Sales Management and Sales Organization.

Advantages of decentralized organization structure:

- Decisions that were poor, inconsistent, and poorly planned. It is possible that subordinates lack
the necessary skills to make sound decisions. Though they might be experts in certain functional
areas, they lack decision-making skills. The boss' reputation may also be harmed by poor choices
since people may view him as unqualified to handle them.

- Bad decisions can disrupt operations and harm production and sales.

- Employee misunderstanding and increasing struggle for power and influence might result from
decentralization.
- While economies of scale are supported by centralization, costs are raised by decentralization. It
is less expensive to centralize procurement since suppliers are more likely to provide discounts.

Disadvantages of decentralized organization structure:

- To function efficiently and accomplish organizational objectives, businesses require more

activities to regulate and coordinate decision-making.
- The chain of command may become unclear as a result of decentralization, which could confuse
workers and fuel competition for authority and influence.
- Decentralization weakens top-level managers' influence, which prevents it from producing
strong leadership.

Line and Staff Organizations

A structure known as a line-staff organization delegated job tasks from senior management to lower-
level personnel. It is the team's job to adhere to the standards and timeframes that the manager
sets. Line-staff organizations, which designate trained supervisors to manage associates while
maintaining the authority of the leadership, are more adaptable than line structures.

- Businesses that have a sizable sales force, a broad range of products to sell, and a variety of
markets utilize a staff specialization structure, where tasks not directly related to selling are
done by competent individuals.simple to operate
- Due to unifying control and unwavering loyalty, line organizations exhibit outstanding discipline.
- Due to a lack of employee engagement, organizations run at a minimal cost.
- A stable kind of organization is organization.

Disadvantages of a line organization structure:

- Line organizations are tight and inflexible; they rarely change and require strict discipline to
sustain discipline.
- The manager, not the scientific plan, decides how the work is divided up.
- Lack of expert guidance in an organization can make decision-making challenging because the
line manager has no one to turn to.
- It may obstruct progress and undermine the effectiveness of the unit.

A line structure is no longer employed in the sales organization of today for a few reasons, the first of
which is the frontline sales employees who direct clients and have greater responsibilities. Sales
managers are the ones assigned to sales activities, such as market research, so they may concentrate
on their core competencies even though there are no staff tasks to relieve them of. The phrase and
context utilized are related to the line and personal type of organizational structure, which are
clearer and faster to understand. Businesses that have a sizable sales force, a broad range of
products to sell, and a variety of markets utilize a staff specialization structure, where tasks not
directly related to selling are done by competent individuals.

Advantages of a line and staff organization structure

- Employees can grasp the reporting hierarchy and prevent confusion and blunders thanks to the
organization's introduction of discipline brought about by the clarity of authority and tasks.
- Better coordination is facilitated by defining roles for each type of employee within the
organization. Line authorities plan and direct staff activities, while functional officers give advice
as needed. It improves several types of coordination between all staff and workers. Lack of
communication could lead to a power struggle if not handled properly.
- To ensure effective decision-making for advancement and success, organizations must base their
decisions on the recommendations of functional officers.
- Employees have more opportunities to show off their skills and advance in their careers when
planning and execution roles are distinct.

Disadvantages of a line and staff organization structure:

- Line managers disregard the advice of staff officers because they lack the authority to put their
ideas into action without the line manager’s consent.
- Because staff officers can make decisions and put them into action without consulting others,
the line and staff structure can make management more reliant on staff members for
information.
- To increase employee performance, line and staff organization needs more resources, specialized
personnel, and training and development opportunities.