Centralisation and decentralisation

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.