Advantages of Decentralization

1. Group 5 Topic 6: What does the term ‘ Decentralisation ’ mean? What are the advantages of new ways of organizational structures? Give an example for this new organizational structure .

2. Outline I. Introduction II. Content 2.1 Definition of Decentralization 2.2 Comparison between Centralization and Decentralization 2.3 An examples of decentralization 2.4 Advantages of Decentralization III. Conclusion

3. I. Introduction O rganizational structure: - The outline of a company’s framework. - Guidelines for managing business operations. Two main types: centralization and decentralization.

4. 2. Definition. Decentralization: - the assignment of logical. - the transfer of responsibility for planning, management. Each level has the authority to act, promote dynamism. Several individuals responsible for making business decisions and running the business

5. Q: Two digrams of organizational structures. Which is the diagram of Decentralization? 1 2 a.1 b.2 c.Both 1 and 2 d.Neither 1 nor 2  

6. 3. Comparision. Centralization Decentralization -         Making decisions and provide direction:   One individual - Making decisions and provide direction: The numerous managers -         Applying:  + Small businesses  + the owner is responsible for everything. + Each manager is responsible for few employees and 1 or 2 job functions

7. 4. Example Clarion University’s student newspaper advertising services.

8. 5. Advantages. 1. Reduces burden of top executives . - Concentrate on more important functions. - Extend leadership. 2. Quick and better decisions. - Making accurate decisions without consulting higher levels.

9. 3. Growth and diversification. - Facilitate growth and diversification of products and markets. 4. Better communication. - Improve organizational communication. - Reduce bureaucracy. 5 . Development of executives. - Make for stability and continuity of the company. - Promote autonomy, initiative and creativity of subordinates.

10. 6. Improvement in motivation and morale. - Improve the job satisfaction and morale of subordinates. 7. Effective supervision and control. - Result in effective supervision. - Promote effective control. 8 . Democratic management. -Make flexible operation.

11. 6 . Conclusion. Decentralized organizations are becoming more popular. Decentralization is an organization's form of freedom. Companies are able to take advantage of decentralized structure to gain better business growth faster.

12. Questions Q: How many advantages were given in our presentation? a. 5 b. 6 c. 7 d. 8 Q: In our example, Clarion Call is... a. A newspaper. b. A store. c. A person. d. A city.

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