Question

Positive and negative effects of centralisation and decentralisation

Answer 1

positive effect Quick implementation of decisions. In a centralized organization, decisions are made by a small group of people and then communicated to the lower-level managers. The involvement of only a few people makes the decision-making process more efficient since they can discuss the details of each decision in one meeting.

negative effecta Decentralized Organization. The main negative effect of a decentralized organization is that you lose control over the day-to-day activities of your company. Maybe “lose” is too strong a word, but you are ceding authority to your managers, which means that you trust their instincts, skills, and talents.