advantages of decentralization
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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.
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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
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I. Introduction
• Organizational structure:
- The outline of a company’s framework.
- Guidelines for managing business operations.
• Two main types: centralization and decentralization.
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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
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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
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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
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4. ExampleClarion University’s student newspaper advertising services.
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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.
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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.
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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.
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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.
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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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