Question

Explain the difference between centralised and decentralised organisational structure

Answer 1

Centralized organizational structure concentrates decision-making power at the top level, while decentralized structure spreads decision-making authority across different levels and departments.

Step-by-step explanation:

In a centralized organizational structure, decision-making authority is concentrated at the top level of management. This means that all important decisions are made by a few individuals or a single person at the top, while lower-level employees have limited decision-making power. On the other hand, in a decentralized organizational structure, decision-making authority is spread out across different levels and departments within the organization. This allows for more autonomy and decision-making power at lower levels, empowering employees to make decisions that affect their specific areas of responsibility.

Answer 2

Centralized organizational structures rely on one individual to make decisions and provide direction for the company. ... Decentralized organizational structures often have several individuals responsible for making business decisions and running the business.



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