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With respect to each of the following activities, characteristics, and applications, indicate whether they are primarily identified as being found in a centralized organization, a
With respect to each of the following activities, characteristics, and applications, indicate whether they are primarily identified as being found in a centralized organization, a decentralized organization, or both types of organizations.
- both
- centralization
- decentralization
Required:
- Freedom for managers at lower organizational levels to make decisions.
- Gathering information may be very expensive.
- Greater responsiveness to user needs.
- Have few interdependencies among divisions.
- Maximum constraints and minimum freedom for managers at lowest levels.
- Maximization of benefits over costs.
- Minimization of duplicate functions.
- Minimum of sub optimal decision making.
- Multiple responsibility centers with various reporting units.
- Profit centers.
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