Centrlization and decentralization

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