Decentralized Organizational Structure: Advantages and Homework Help
What is a decentralized organization?
As opposed to a centralized organization where all the decisions are taken by the management at the top, decentralized organizations are companies where most of the decisions are made by mid or lower level managers. As such its operation is not centralized only at the top but is decentralized among various employees of the organization.
The senior managers have passed some of their authority and decision making power onto the subservient managers and this means that cost center managers, investment managers or profit center managers have the power to make some decisions on behalf of the company. Decentralized structure brings in flexibility and ease of operation in a company.
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