Advantages of Decentralization

Group 5

Topic 6: What does the term ‘Decentralisation’ mean? What are the advantages of new ways of

organizational structures? Give an example for this

new organizational structure.

Outline

I. Introduction

II. Content

2.1 Definition of Decentralization

2.2 Comparison between Centralization and Decentralization

2.3 An examples of decentralization

2.4 Advantages of Decentralization

III. Conclusion

I. Introduction

• Organizational structure:

- The outline of a company’s framework.

- Guidelines for managing business operations.

• Two main types: centralization and decentralization.

2. Definition.• Decentralization:

- the assignment of logical.

- the transfer of responsibility for planning, management.

• Each level has the authority to act, promote dynamism.

• Several individuals responsible for making business decisions and running the business

Q: Two digrams of organizational structures. Which is the diagram of Decentralization?

1 2

a.1

b.2

c.Both 1 and 2

d.Neither 1 nor 2

3. Comparision.

Centralization Decentralization-         Making decisions and provide direction:  One individual

- Making decisions and provide direction: The numerous managers

-         Applying:  + Small businesses + the owner is responsible for everything.

+ Each manager is responsible for few employees and 1 or 2 job functions

4. ExampleClarion University’s student newspaper advertising services.

5. Advantages.

1. Reduces burden of top executives.

- Concentrate on more important functions.

- Extend leadership.

2. Quick and better decisions.

- Making accurate decisions without consulting higher levels.

3. Growth and diversification.

- Facilitate growth and diversification of products and markets.

4. Better communication.

- Improve organizational communication.

- Reduce bureaucracy.

5. Development of executives.

- Make for stability and continuity of the company.

- Promote autonomy, initiative and creativity of subordinates.

6. Improvement in motivation and morale.

- Improve the job satisfaction and morale of subordinates.

7. Effective supervision and control.

- Result in effective supervision.

- Promote effective control.

8. Democratic management.

-Make flexible operation.

6. Conclusion.

• Decentralized organizations are becoming more popular.

• Decentralization is an organization's form of freedom.

• Companies are able to take advantage of decentralized structure to gain better business growth faster.

QuestionsQ: How many advantages were given in our

presentation?

a. 5

b. 6

c. 7

d. 8

Q: In our example, Clarion Call is... a. A newspaper. b. A store. c. A person. d. A city.

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