Question
Organizational structure is notoriously difficult to design. One of the biggest questions involves which functions or units to centralize. Centralization can bring with it many
Organizational structure is notoriously difficult to design. One of the biggest questions involves which functions or units to centralize. Centralization can bring with it many benefits: cost savings, standardization, and sharing of best practices. For example, according to the American Productivity & Quality Center (APQC) (formerly, American Productivity & Quality Council), controllable manufacturing costs are 10% lower at centralized versus decentralized manufacturing organizations
You are the General Manager of ZASS COFFEE SDN. BHD. needs to decide whether to go for a centralized or decentralized decision-making hierarchy. Please explain FOUR (4) comparisons between centralization and decentralization and which is suitable for the company?
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