BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When directors wish to keep a tight control on all areas of decision-making within the organisation
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When standardisation of products and outlets is required
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When the business wants to give local managers more authority to make key decisions
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When a strong corporate image is important to business success
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Detailed explanation-1: -A centralised structure is where business decisions are made at the top of the business or in a head office and distributed down the chain of command . It is often used in retail chains.
Detailed explanation-2: -Good examples of businesses which use a decentralised structure include the major supermarket chains like WM Morrison and Tesco. Each supermarket has a store manager who can make certain decisions concerning areas like staffing, sales promotions. The store manager is responsible to a regional or area manager.
Detailed explanation-3: -Centralization refers to the hierarchical level within an organisation that has authority to make decisions. When decision making is kept at the top level, the organisation is centralized; when it is delegated to lower organisational levels, it is decentralized.
Detailed explanation-4: -The flat organization has few management levels, so the managers hold more authorities than the tall organization. It is sometimes known as the self-managed organization as all the employees in the organization is responsible for their roles and responsibilities.