The advantages of decentralization are as follows: 1. Top executives are relieved of some of their responsibilities. 2. It promotes motivation. 3. Diversification is made more accessible. 4. Better monitoring and control
What are the benefits of decentralized organizational structure?
A decentralized organizational structure alleviates the burden of day-to-day tasks and gives upper managers and executives more time to focus on the long-term goals of the organization, such as setting its mission and devising growth strategies.
What is decentralization and why does it matter?
Decisions depend on a few individuals under a centralized structure, but under a decentralized structure, it is more dispersed along with the managerial layers. In addition to enabling faster decision-making, decentralization can boost employee motivation.
What is a centralized organizational structure?
Lower-level managers deal What's it: A centralized organizational structure is an organizational structure in which decision-making is concentrated at the top level. What's it: The Shamrock Organization is a model organization with three workforce groups and forms like a shamrock leaf.
What are the managerial tasks of implementing and executing a new strategy?
A) The managerial tasks of implementing and executing a new strategy call for essentially the same kinds of creative management talent and innovative thinking as does crafting strategy. B) Executing strategy is chiefly a financially-driven process aimed at squeezing the most profit out of conducting daily operations.
Which of the following is an advantage of a decentralized organization quizlet?
The primary advantage of decentralization is that managers at the lower levels of the organization are usually "closer to the action" and can make more informed and quicker decisions based on local information.
Which of the following is an advantage of decentralization?
The advantages of decentralization of power include: Reduces the burden on top executives. Executive Development. Better control and supervision.
What are the advantages and disadvantages of a decentralized organizational structure?
Decentralised structuresAdvantagesDisadvantagesDecisions are made closer to the customerDecision-making is not necessarily “strategic”Better able to respond to local circumstancesMore difficult to ensure consistent practices and policies (customers might prefer consistency from location to location)4 more rows
Which of the following is an advantage of decentralized organization over centralized organization?
Faster decision-making While centralized organizations have to wait for decisions to be approved, decentralized organizations are independent enough to make decisions quickly. This is especially important when fast solutions are necessary to prevent losing a customer.
Which of the following is not an advantage of decentralisation?
The answer is: a. It allows lower-level managers to focus on their own particular goals and objectives without having to consider the overall company's goals and objectives. This is a false statement.
What are the advantages of decentralization of power?
(i) Conflict are reduced when the power is shared between centre and states and local government. (ii) a large number of problems and issues can be best settled at the local level. (iii) People have better knowledge of their own problems in their localities.
What is a decentralized organizational structure?
A decentralized organizational structure is one in which senior management has shifted the authority for some types of decision making to lower levels in the organization.
What is a decentralised Organisational structure?
Decentralised management structure A decentralised approach is where a business allows decisions to be made by managers and subordinates further down the chain. This structure provides staff with more decision-making responsibilities.
What are the disadvantages of a decentralized organizational structure?
The main disadvantage of a decentralized organization is that you lose control over the day-to-day activities of your company. Maybe “lose” is too strong a word, but you are ceding authority to your managers, which means that you trust their instincts, skills, and talents.
Which of the following is an example of a decentralized organizational system?
An example of a decentralized organization is a fast-food franchise chain. Each franchised restaurant in the chain is responsible for its own operation.
What are two benefits of decentralized decision-making?
The advantages of decentralized decision-making are that it promotes innovation, creativity, and entrepreneurship. It can help improve employee engagement and increase productivity. It can also decrease issues with power dynamics, as decisions are made by the people closest to the situation.
What is political decentralization?
Political decentralization signifies a reduction in the authority of national governments over policy-making.
Which of the following is a drawback of decentralizing a company?
8) Which of the following is a drawback of decentralizing a multinational company? B) It may result in lack of control and results in increasing risk.
Which of the following is true of departmentalization by product?
Which of the following is TRUE of departmentalization by product? It duplicates functions and resources. The functional approach to departmentalization is common in ______ organizations.
Which of the following statements is true about an organizational chart in the context of organizational structure?
Which of the following statements is true about an organizational chart in the context of organizational structure? It gives information about an organization's chain of command. Which of the following is a disadvantage of job specialization? It can lead to dissatisfaction and boredom among employees if overly done.
What are the components of a capable organization?
A) making periodic changes in the firm's internal organization to keep people from getting into a comfortable rut, instituting a decentralized approach to decision-making, and developing the appropriate competencies and capabilities.
What is the purpose of optimizing the number of core competencies and competitive capabilities?
E) optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency.
What is the purpose of Executing Strategy?
B) Executing strategy tests a manager's ability to direct organizational change, achieve continuous improvement in operations and business processes, create and nurture a strategy-supportive culture, and consistently meet or beat performance targets.
What is the job of the board of directors?
A) is primarily the job of the company's board of directors since they direct the actions and policies of the top senior executives in executing the strategy.
What is an execution strategy?
Executing strategy. A) is primarily an operations-driven activity revolving around the management of people and business processes. B) tests a manager's ability to direct organizational change and achieve continuous improvement in operations and business processes.
What is the challenge of successfully implementing new strategic initiatives?
C) The challenge of successfully implementing new strategic initiatives principally involves employing managerial techniques to overcome resistance to change.
Who is responsible for seeing that strategy is executed successfully?
A) a company's chief executive officer, its chief operating officer, and the heads of major units (business divisions, functional departments, and key operating units).
What are the advantages and disadvantages of matrix organizational structures?
An advantage of matrix organizational structures is that they facilitate the sharing of plant and equipment, specialized knowledge, and other key resources, but they have a potential disadvantage for confusion among employees due to dual reporting relationships and divided loyalties.
Why is multidivisional structure important?
A multidivisional structure can present problems to a company pursuing related diversification, because having independent business units--each running its own business in its own way--inhibits cross-business collaboration and the capture of cross-business synergies, which are critical for the success of a related diversification strategy.
Why is it important to have superior execution capabilities?
Superior strategy execution capabilities allow companies to get the most from their other organizational resources and competitive capabilities. In this way they contribute to the success of a firm's business model.
Why are network structures important?
Network structures have the advantage of facilitating the sharing of plant and equipment, specialized knowledge, and other key resources, but they have a potential disadvantage for confusion among employees due to dual reporting relationships and divided loyalties.
What is the role of staffing in an organization?
Staffing the organization; acquiring, developing, and strengthening key resources and capabilities; determining appropriate compensation levels and building effective reward systems.
What is superior strategy execution capability?
Superior strategy execution capabilities are one of many sources of sustainable competitive advantage when strategies are easy for rivals to copy.
How to tell if a company is good at strategy execution?
The two best signs of good strategy execution are whether a company is meeting or beating its performance targets and whether its senior managers consistently receive performance bonuses.