A - Concepts

3 important questions on A - Concepts

When all the power for decision making rests at a single point in the organization - ultimately in the hands of one person - 

  • What shall we call this structure?

  • Centralised.

To the extent that the power is dispersed among many people -

  • What shall we call this structure?  

  • We shall call the structure decentralized.

Selective decentralization:

The power over different kinds of decisions rests in different places in the organization.

  • Provide 3 examples of selective decentralization:

  • Finance decisions at the strategic apex.

  • Marketing decisions at the support staff.

  • Production decisions at the middle line.

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