1. 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.
Group 5
2. 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
3. I. Introduction
• Organizational
structure:
- The outline of a
company’s
framework.
- Guidelines for
managing business
operations.
• Two main types:
centralization and
decentralization.
4. 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
5. 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
6. 3. Comparision.
Centralization Decentralization
- Making decisions and - Making decisions and
provide direction: provide direction:
One individual The numerous managers
- Applying: + Each manager is responsible
+ Small businesses for few employees and 1 or 2
+ the owner is responsible for job functions
everything.
8. 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.
9. 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.
10. 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.
11. 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.
12. Questions
Q: 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.
