centralized versus decentralized organizational structures
Centralized organizational structures focus management authority and decision-making in a single executive team, with information flowing from top managers to various business units. Decentralized organizational structures, on the other hand, look more like multiple smaller representations of a single structure, featuring management redundancies and more close-knit chains of command. Understanding the difference between these two fundamentally different design philosophies can help you create an effective structure for your business.
Management Structure
In a centralized design, each manager has authority over a wider range of employees, departments and business functions. Management styles can become autocratic in centralized structures, as managers find themselves with less time to interact with individual subordinates. In decentralized designs, each manager is responsible for fewer employees and job functions, and numerous managers may share the same job titles and responsibilities in different areas of the business. Decentralized structures allow managers to
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