Decentralisation (Quick Revision)

Question 1

Define: Decentralisation

Answer 1

Decentralisation is the extent to which authority is passed throughout the organisation.

Question 2

State two possible benefits of decentralisation.

Answer 2

• May enable decisions to be taken more quickly.

* May increase motivation.

Question 3

Decentralisation will increase the remaining employees’ s………… of c……………. State one problem which may result.

Answer 3

Span of control; may lead to overwork and stress

Question 4

State two possible problems of decentralisation.

Answer 4

• Loss of control

* Lack of consistency in approach between different parts of the organisation.

Question 5

How might decentralisation improve communication?

Answer 5

Less need to check with the centre all the time; may reduce overload.

Question 6

What is the Examiner’s note for Decentralisation?

Answer 6

Firms have decentralisation more in recent years. Employees have wanted more authority and firms have wanted to be more flexible as well.

Question 7

What is the Evaluation point for Decentralisation?

Answer 7

The effectiveness of decentralisation depends on whether employees have the skills required to make the decisions and whether they are willing to accept greater responsibility.