CENTRALISED ORGANISATIONAL STRUCTURES
company headquarters
make most operational
strategic
financial
marketing
functional leadership decisions
More convenient for a Company
Combination of centralisation and decentralisation
decentralisation
recruitment
centralisation
ccounting and purchasing
MAIN CHARACTERISTICS ( headquarters)
local managers and employees are often better equipped to interpret the needs and traits of consumers in their respective markets.
approach to business
Senior management at the centre of a business
ho have the authority, control, and responsibility for the entire organization) are located in one central office
Antithesis
pread responsibility for specific decisions across various outlets and lower level managers
Disadvantages
reduce manager motivation
More bureaucratic
inconformism of customers
Examples
Fast-food businesses like
Burger King - Pizza Hut - McDonalds
Advantages
benefit from the decision making of experienced senior managers.
The use of standardised procedures can results in cost savings.
Greater use of specialisation
Quicker decision-making
Easier to co-ordinate and control
Prevents independence
