Академический Документы
Профессиональный Документы
Культура Документы
Decentralized Buying
What Is Centralization?
If top manager make the organizations decisions with little or no input from subordinates, then the organization is Centralized
The degree to which decision making is concentrated at a single point in the organization
What is Decentralization ?
When the managers and supervisors at the middle and lower levels are given considerable autonomy in decision-making, the organization is considered to be decentralized It assumes that those most involved with the particular product, service, or consumers know what to do and can do it more quickly if given the authority to commit resources.
2007 Pearson Education
Centralization Vs Decentralization
Buying Decision
Purchasing is a window to the outside world. In any industry purchase means buying of equipments, materials, tools, parts etc. required for industry. The major task of the purchasing decision related with:
Getting the right quantity of material, At the required or right quality, At the right time, At the right place, From the right source, and 2007 Pearson Education At the right cost.
Supplier Warehouse
Plant A
Plant B
Plant C
Plant D
Plant A
Plant B
Plant C
Plant D
Purchase Dept
2007 Pearson Education
Purchase Dept
Purchase Dept
Purchase Dept
Disadvantages
Problem when specific requirement needed Delay in receiving the materials Problems to use local resources in small quantity Helps for autocratic management style Central purchasing staff may not be expert in buying various types of items Loss of local control Creates another level of hierarchy Suitable more for small organization
Thank You !