Centralisation / Decentralisation
This concept defines and describes different models of decision-making in organisations. It looks at the strengths and weaknesses of centralised and decentralised systems and provides practical examples based on real industry cases.
Technique Overview
Centralisation / Decentralisation Definition
Centralisation refers to the hierarchical level within an organisation that has authority to make decisions. When decision making is kept at the top level, the organisation is centralised; when it is delegated to lower organisational levels, it is decentralised (Daft, 2010: 17).
Centralisation / Decentralisation Description *
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Business Evidence
Strengths, weaknesses and examples of Centralisation / Decentralisation *
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Business Application
Implementation, success factors and measures of Centralisation / Decentralisation *
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Professional Tools
Centralisation / Decentralisation videos and downloads *
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Further Reading
Centralisation / Decentralisation web and print resources *
Centralisation / Decentralisation references (4 of up to 20) *
- Andrews, R., Boyne, G. A., Law, J. and Walker, R. M. (2009) Centralization, Organizational Strategy, and Public Service Performance. Journal of Public Administration Research and Theory, Vol. 19(1), pp. 57–80.
- Atkinson, W. (2006) Centralised Procurement: Success Breeds Success. [Online] Available at: www.purchasing.com/article/CA6341094.html.
- Bhargava, S. and Kelkar, A. (2001) Examining the Relationship between Organisational Structure, Job Involvement, Job Satisfaction, and Empowerment: Implications for Human Resource Development,.International Journal of Human Resources Development and Management, Vol. 1(2– 4), pp. 150–61.
- Daft, R.L. (2010) Organization Theory and Design. Cengage Learning, Mason, OH.
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