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Centralization
Centralization
Decentralization
Decentralization and
and performance
performance
evaluation
evaluation
Distinction
Distinction between
between delegation
delegation and
and
decentralization
decentralization
Advantages
Advantages of
of centralization
centralization and
and
decentralization
decentralization
Factors
Factors determining
determining the
the extent
extent of
of
centralization
centralization
Types
Types of
of decentralization
decentralization
Prerequisites
Prerequisites of
of decentralization
decentralization
Marketing
Marketing decision
decision to
to decentralize
decentralize
Case
Case study:
study: Fords
Fords Global
Global strategy
strategy
What is centralization?
Executive
Director
Finance
Executi
ve
Financ
e
Manag
er
Operations
Manag
er
Admin
.
Officer
Senior
Manag
er
Asst.
Manag
er
What is decentralization?
Decentralized
rant
organizations g
g authority
decision makin
rs of
to the manage
subunits.
neither
Most frms are
zed nor
totally centrali
alized
totally decentr
Example
Companies with a wide
geographical reach also can
beneft from a decentralized
structure
Complete
decentralizati
on (no
organization
structure)
Authority delegated
Authority not
delegated
More
decentralization
Environment is complex,
uncertain
Organization is facing a
crisis or the risk of company
failure
Company is large
Effective implementation of
company strategies depend
on managers retaining say
over what happens
Lower-level managers
want a voice in decisions
Decisions are relatively
minor
Corporate culture is open
to allowing managers to
have a say in what
happens
Company is
geographically dispersed
Effective implementation
of company strategies
depends on managers
having involvement and
flexibility to make
decisions
Top-to-bottom
approach
Level 1
Level 2
Level 3
Level 4
Decentralized
approach
Centralized
approach
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