What are the advantages and limitations of having a centralized and a decentralized advertising arrangement?
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Small Business» Business Models & Organizational Structure» Advantages of Limited Liability Companies»
Advantages & Disadvantages When Companies Decentralize
by Sampson Quain; Reviewed by Michelle Seidel, B.Sc., LL.B., MBA; Updated February 05, 2019
Advantages & Disadvantages When Companies Decentralize
The traditional structure of many businesses is to centralize authority in the hands of a few people, typically a president, CEO, board of directors or senior-level executives. In this type of organization, power is concentrated with the leadership, and rank-and-file workers have little to no say in how things are handled on a daily basis. However, in recent years, there’s been a push toward decentralized organizations, in which mid- and low-level managers are given more authority in making decisions, and staff employees feel more empowered because their ideas are factored into the day-to-day operations. As a business owner, it’s important to understand the benefits and drawbacks of a decentralized organization.