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CENTRALISED ORGANISATIONAL STRUCTURES

company headquarters

make most operational

strategic

financial

marketing

functional leadership decisions

More convenient for a Company

Combination of centralisation and decentralisation

decentralisation

recruitment

centralisation

ccounting and purchasing

MAIN CHARACTERISTICS ( headquarters)

local managers and employees are often better equipped to interpret the needs and traits of consumers in their respective markets.

approach to business

Senior management at the centre of a business

ho have the authority, control, and responsibility for the entire organization) are located in one central office

Antithesis

pread responsibility for specific decisions across various outlets and lower level managers

Disadvantages

reduce manager motivation

More bureaucratic

inconformism of customers

Examples

Fast-food businesses like

Burger King - Pizza Hut - McDonalds

Advantages

benefit from the decision making of experienced senior managers.

The use of standardised procedures can results in cost savings.

Greater use of specialisation

Quicker decision-making

Easier to co-ordinate and control

Prevents independence