28. Centralisation and Decentralisation

Question 1

What does centralised mean?

Answer 1

Authority, power and decision making responsibilities remain with the senior management team.

Question 2

What does decentralised mean?

Answer 2

Authority, power and decision making responsibilities are delegated to staff at lower levels of the business.

Question 3

What is a tall structure?

Answer 3

Many hierarchical layers of management which implies that managers have fewer staff under their control. (narrow span of control)

Question 4

What is a flat structure?

Answer 4

Few hierarchical layers of management which implies that managers have large numbers of staff under their control.

There’s more freedom for subordinates TMT more creativity will be encouraged.