V) Centralisation V Decentralisation

. Centralisation refers to the degree to which decision-making is concentrated at a single point of the organisation like top management; decentralisation, on the other hand, involves decision discretion being pushed down to lower level staff. In a decentralised organisation, action can be taken more quickly to solve problems, more people provide input into decisions, and staff members are less likely to feel alienated from those who make decisions that impact their working lives.

. With the trend to making organisations more flexible and responsive, decentralised decision-making is becoming more prevalent. Lower-level staff are closer to the action, such as the interface with customers than higher levels of staff in the organisation.

. When delegating authority, the following steps are important

. clarifying the assignment

. specifying the staff's range of discretion

. allowing the staff to participate

. informing others that delegation has occurred

. establishing feedback controls

Question: where does decision-making authority best lie?

 

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