Difference Between Centralized and Decentralized Organizational Structures
Explore the distinctions between centralized and decentralized structures in organizations. Centralized structures rely on a single individual for decision-making, while decentralized structures distribute decision-making across a team. Learn about the definitions, advantages, and disadvantages of each to understand their impact on business operations.
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Libyan International Medical University Libyan International Medical University Faculty Of Business Administration Faculty Of Business Administration Differentiate between Centralized and Decentralized Structures 1 Student name:nahawand elhammali Student ID :2752 Email: nahawand_2752@limu.edu.ly
Table Of Contact: 1. Introduction 2.Definitions 3.Advantage And Disadvantage 4.Differences 5.Conclousion 6.REFERENCES 2
Introduction: Centralized organizational structures rely on one individual to make decisions and provide direction for the company. At various stages of the business, decentralized companies rely on a team atmosphere. 3
2. Definition Centralized And Decentralized Structures 4
Centralized Centralized Structures Definition: Structures Definition: Centralized Centralizedstructures : where a Business decisions are made at the top of the company or in a central office and then distributed down the chain of command in a centralized organization. Decentralized Structures Definition: Decentralized Structures Definition: decentralized decentralized structures : : is one in which a business empowers managers and subordinates further down the chain to make choices. 5
3.Advantages And Disadvantages Of Centralized And Decentralized Structures 6
Advantages Of A Centralized Management Structure: uniformity throughout the company. The company is headed in the right direction. Operational and decision-making processes are closely monitored and supervised. There is a clear chain of command and accountability. Disadvantages Of A Centralized Management Structure: It has the potential to demotivate employees. It's possible that a standardized method won't work in all company settings. 7
Advantages Of A Decentralized Management Structure: employee motivation has improved. allowing lower-level managers to make decisions that best suit their local area and consumers, and giving staff more responsibility. Disadvantages Of A Decentralized Management Structure: When there is a lack of uniformity across the organization, managers may make terrible decisions. may have a detrimental impact on sales and overall business success, for example, because of poor decisions made by managers farther down the chain. 8
4. Differences Between Centralized And Decentralized Structures 9
The distinction between centralization and decentralization in an organization is that centralization centralization implies giving top management entire planning and decision-making authority. It indicates that all authority and power is concentrated at the top. The delegation of power by middle or lower management in an organization is known as decentralization decentralization. 10
Conclusion: Decentralization refers to the transfer of power and authority from the top level to lower-level administration. The systematic and continuous concentration of authority at key points is known as centralization. Decentralization, on the other hand, is the methodical delegation of authority within an institution. 11
References: SlideShare.net. www.slideshare.net. (n.d.). https://www.slideshare.net/. Difference Between Centralization and Decentralization (With Table). Ask Any Difference. (n.d.). https://askanydifference.com/difference-between-centralization-and-decentralization/. BBC. (2002, July 8). UK. BBC News. http://news.bbc.co.uk/2/hi/uk/default.stm. 12
Thanks Thanks 13
