Академический Документы
Профессиональный Документы
Культура Документы
Usually with complete centralization no-one other than a small group of senior managers
could make any decisions the results would be that the organization would be paralyzed
and unable to function.
What are the Advantages of Centralization?
1. Central authority ensures corporate integrity to the organization and preventing
excessive departmentalism.
2. Senior management needs to be seen as providing leadership for the organization
as a whole, ensuring that the various parts perform as a team within corporate
objectives.
3. In the event of disputes between departments or division, or between departments
and the corporate whole, central authority takes on the role of referee in the
resolution of conflict.
4. Centralized authority is necessary for the making of corporate policy and
determining strategic plans across the whole organization.
5. It also fulfills other functions such as standardizing procedure and approaches
which are defining and promoting a unity and style and purpose in respect of issue
and practices across the organization such as equal responsibilities practice.
6. It also fulfills the purposes of crisis management which is the determination of
action which can be effective across the whole organization in response in serious
emergencies.
What are the Advantages of decentralization?
1. Decentralization aims to place the authority to make decisions at points as near as
possible to where there are relevant activities take place.
2. It utilizes local and immediate knowledge of situations in order to make the
timely and effective decisions within the defined spare of action.
page1
3. This is in contrast to centralized decision making which is remote from the point
of impact.
4. There is, therefore a clear potential gain in the quality of decision making, but it
must be confined to those situations which do not have wider impact that the area
of responsibility of the decision maker.
5. It encourages initiative, stimulates job satisfaction and includes moral by
providing individuals with more control over their work and involvement with the
objectives of the organization.
6. It fosters the development of managerial ability at lower levels.
What are the disadvantages of decentralization?
1.
2.
3.
4.
5.
What Delegation?
Delegation is the passing of responsibility of one level of management to a lower level.
Why do managers refrain from delegating or why it is not practiced often?
page2
Planning
The identification of tasks and functions which could usefully be delegated.
The selection of a suitable subordinate or group of subordinates considered
capable of assuming the responsibility.
Capacity & willingness of the management, and the capacity and willingness of
the subordinates.
Time, communication and cost also should be considered.
What is Empowerment?
page3
page4