Question

14. Every organization is characterized by both centralization and decentralization. Do you
agree with the given statement?​

Answer 1

Answer:

Centralized management is the organizational structure where a small handful of individuals make most of the decisions in a company. For example, a small family diner owned by a married couple probably uses centralized management. The couple themselves order inventory, decide the marketing direction, and hire new employees. As a company with centralized management grows, they add new levels of mid and lower level managers, each of whom answers to a superior, with very strictly defined roles in the company.

More centralized management is usually seen in highly competitive industries, where companies specialize in similar products to their competition. A common example is Apple computers, where most of the direction of the company is orchestrated at the very top (formerly Steve Jobs himself), which the lower levels of management and employees very tightly organized to execute those goals.

Answer 2

Yes, I agree that every organization is characterized by both centralization and decentralization.

In a Centralized organisation, the authority of making important decisions is retained by top-level managers.

In a Decentralized organisation, the authority to make important decisions is distributed to managers of all hierarchy levels.

Every organization is characterized by both centralization and decentralization because :-

• The owner or the head takes up important decisions in achieving business objectives which are referred to as a centralised organisation.

• Organisations are divided into groups of individuals who perform different tasks to achieve the business objectives decided by the head. Each group is managed by the assigned group leader. This refers to decentralization.

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