‘if a superior shares his/her responsibility, the responsibility is performed by two however if the power of decision making is shared with all levels of management, the responsibility is performed by many’.
(a) Identify the two concepts and their benefits.
(b) Explain the above concepts and their benefits.
Answers
Answer:
a)Centralization and Decentralization.
Advantages of Centralization
The organization can strictly enforce uniformity of procedures and policies.
It can help in the elimination of overlapping or duplicate activities and save costs.
The organization has a better chance of utilizing the potential of its outstanding employees.
It offers a better control over the activities of the organization by ensuring consistency in operations and uniformity in decision-making.
Advantages of Decentralization
Faster decision-making and better quality of decisions
Improves the effectivity of managers.
Offers a democratic environment where employees can have a say in their governance.
Provides good exposure to mid and lower-level managers and creates a pool of promotable manpower with managerial skills.
Since managers can see the results of their own actions, they are more driven and have improved morales.
b) Decentralization
Advantages of Decentralization
Faster decision-making and better quality of decisions
Improves the effectivity of managers.
Offers a democratic environment where employees can have a say in their governance.
Provides good exposure to mid and lower-level managers and creates a pool of promotable manpower with managerial skills.
Since managers can see the results of their own actions, they are more driven and have improved morales.