|
People management - Centralised organisational structures One of the issues that a business needs to address is where decision-making power resides in the organisational structure. Decision-making is about authority. A key question is whether authority should rest with senior management at the centre of a business (centralised), or whether it should be delegated further down the hierarchy, away from the centre (decentralised) The choice between centralised or decentralised is not an either/or choice. Most large businesses necessarily involve a degree of decentralisation when it starts to operate from several locations or it adds new business units and markets. The issue is really how much independence do business units or groups within a business have when it comes to the key decisions? Centralised structures Businesses that have a centralised structure keep decision-making firmly at the top of the hierarchy (amongst the most senior management). Fast-food businesses like Burger King, Pizza Hut and McDonalds use a predominantly centralised structure to ensure that control is maintained over their many thousands of outlets. The need to ensure consistency of customer experience and quality at every location is the main reason. The main advantages and disadvantages of centralisation are:
|
Related Study Notes
|
||||||||||||||
|
|||||||||||||||
