chapter 3c - centralization and decentralization
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![Page 1: Chapter 3C - CENTRALIZATION AND DECENTRALIZATION](https://reader036.vdocuments.net/reader036/viewer/2022081413/547a68ce5906b536358b46c2/html5/thumbnails/1.jpg)
-When decision making tends to be concentrated, centralization is present.-When decision making tends to be dispersed, decentralization is present.
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-A business that adopts a policy of placing major decision making authority and control in the hands of a few top level executives.
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PRESIDENT
WESTERN DISTRICT MANAGER
SOUTHERN DISRTICT MANAGER
EASTERN DISTRICT MANAGER
PRODUCTION SALES
CENTRALIZED ORGANIZATION STRUCTURE
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-A decentralized organization
structure stresses delegation of decision making and lightens the load of top managers.
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PRESIDENT
WESTERN REGIONAL DISTRICT MANAGER
SOUTHERN REGIONAL DISTRICT MANAGER
EASTERN REGIONAL DISTRICT MANAGER
PRODUCTION SALES PRODUCTION SALESS PRODUCTION SALES
DECENTRALIZED ORGANIZATION STRUCTURE
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-Duplication of functions is minimized.-High qualified specialists can be utilized.-Decision making is concentrated.
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-It lightens the load of top managers.-Intimate personal ties and relationships are promoted.-Efficiency is increased.
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