CENTRALISED ORGANISATIONAL STRUCTURES

Advantages

Prevents independence

Easier to co-ordinate and control

Quicker decision-making

Greater use of specialisation

The use of standardised procedures can results in cost savings.

benefit from the decision making of experienced senior managers.

Examples

Fast-food businesses like

Burger King - Pizza Hut - McDonalds

Disadvantages

reduce manager motivation

More bureaucratic

inconformism of customers

Antithesis

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

MAIN CHARACTERISTICS ( headquarters)

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

Senior management at the centre of a business

approach to business

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

More convenient for a Company

Combination of centralisation and decentralisation

centralisation

ccounting and purchasing

decentralisation

recruitment

company headquarters

make most operational

strategic

financial

marketing

functional leadership decisions