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9609 · 7.1.5

Centralisation and decentralisation

**Centralisation and decentralisation** (7.1.5) — common **12–20 mark** theme. Use **case geography, product range, and crisis context** to justify your recommendation.

Need to know

What you need to know

  • Decision-making authority is retained by top management at the corporate centre.
  • Ensures standardisation of procedures and policies across all departments and locations.
  • Can result in slower decision-making as issues must pass up the chain of command.
  • May reduce the motivation and job satisfaction of middle and junior managers.

Explanation

Centralisation and decentralisation

  1. Decision-making authority is retained by top management at the corporate centre.
  2. Ensures standardisation of procedures and policies across all departments and locations.
  3. Can result in slower decision-making as issues must pass up the chain of command.
  4. May reduce the motivation and job satisfaction of middle and junior managers.