organisational structure

Question 1

centralised

Answer 1

decisions made by seniors in a head office
increased control and standardisation
decisions can be slow

Question 2

decentralised

Answer 2

decisions are delegated to regional employees at local stores and branches.
decisions devolved to branches or divisions that may know their local customers better
loss of control.

Question 3

what happens as the business increases in size

Answer 3

more people are employed increasing the chain of command and the span of control. this can impact communication and flexibility.

Question 4

why can a business delayer or downsize

Answer 4

reduce costs
improve efficiency
improve communication