centrlization and decentralization
DESCRIPTION
Centralization and decentralization for MBATRANSCRIPT
AUTHORITY
POWER to exercise discretion in
making decisions affecting others
POSITION RESPONSIBILITY
Degree to which decision making is concentrated to a single point in the organization.
TYPES
PERFORMANCE
DEPARTMENTAL
MANAGEMENT
GEOGRAPHIC CONCENTRATION(OPERATING AT ONE LOCATION)
CONCENTRATION OF SPECIALIZED ACTIVITIES FOR 1 DEPT.
RESRTICTS DELEGATION & DECISIONS .HIGH DEGREE OF AUTHORITY
MORE EFFICIENT
AVOIDS WASTAGE
AVOIDS DUPLICATION
SCALE OF ECONOMIES
MORE TIME TAKEN TO RECOGNISE THE PROBLEM
DELAY IN DECISION MAKING
LESS EMPLOYEE CO-OPERATION , FREEDOM & JOB SATISFACTION
DELEGATION OFDECISION MAKING DISCRETION.
FLEXIBILITY OF MANAGEMENT
EDUCATION OF WORK FORCE
WILLINGNESS TO PARTICIPATE & TAKE RESPONSIBILITY
IMPROVES MOTIVATION
QUICK ACTION & PROBLEM SOLVING
EMPLOYEES ARE INVOLVED & RESPONSIBLE
RELIEVES MANAGEMENT OF SOME BURDEN
COMPETANT AND SKILLED PEOPLE NEEDED
PROBLEMS OR CLASHES
INCREASED COST
•NOT JUST A DECISION
TAKEN BY HIGHER
MANAGEMENT.
•AFFECTS ALL AREAS OF
MANAGEMENT .
•ESSENTIAL ELEMENT OF
MANAGERIAL SYSTEM .
•NEEDS CAREFUL
CONSIDERATION.
Organization structure
Task
Policy guide for decision making
Expected outcome
Responsibility
•LOWER LEVEL EMPLOYEES SIMPLY CARRY OUT THE ORDERS
•DECISION MAKING IS PUSHED DOWN TO MANAGERS WHO ARE CLOSEST TO ACTION
DECISION SKILLEDSPECIFIC
CONTROL
• Avoids duplication
• Sharing resources
FREEDOM
• For end user
• Faster decision making
WHEN DE-CENTRALIZATION IS NOT WORKINGPARTIAL