Centralised structure

• What is a centralized structure in management?

  Control and decision-making by top management
• Who typically comprises the highest layers of management?

  CEO, board of directors, senior management
• Why might quicker decision-making occur in centralized structures?

  Fewer people to discuss decisions with
• What advantage does experience in top management provide?

  Ability to make decisions quickly
• How does an authoritarian management style relate to centralized structures?

  It may suit a centralized structure in crises
• What is a benefit of consistency in centralized structures?

  Uniformity in aims, vision, and culture
• How can centralized structures lead to economies of scale?

  By directing all branches to use one supplier
• In what type of business could centralized structures ensure consistent customer experience?

  Fast food outlets with uniform service
• How does motivation relate to centralized structures?

  Clear roles increase worker confidence and productivity
• What role do middle managers play in centralized structures?

  They are protected by top management decisions
• How does budget control function in centralized structures?

  Budgets are controlled by top management
• What is a major disadvantage of centralized structures?

  Rigidity and less flexibility in decision-making
• Why might opportunities be missed in centralized structures?

  Decisions require approval from top management
• How does lack of authority affect middle managers in centralized structures?

  It may lead to decreased motivation and innovation
• What might top management prioritize in a centralized structure?

  Maintaining the status quo and compliance
• How does centralized structure impact the motivation of junior managers?

  They may feel less empowered and motivated
• What is the relationship between centralized structures and innovation?

  Centralized structures may hinder innovation
• What is a centralized structure in management?

  Control and decision-making by top management
• How does a centralized structure relate to management layers?

  Decisions are made by the highest management layers
• In which type of organizational structure is compliance prioritized?

  Centralized structure
• Why do centralized structures suit less skilled labor?

  They aim for compliance and obedience
• Which business model commonly uses centralized structures?

  Fast-food franchises
• What is a key feature of centralized structures in fast-food franchises?

  Standardized menus across branches
• What is a decentralized structure in management?

  Delegation of decision-making to lower management
• How does decision-making occur in decentralized structures?

  It is delegated to middle or lower management
• Which management style is associated with decentralized structures?

  Democratic management style
• Why do decentralized structures suit skilled labor?

  They promote innovation and creativity
• In which environment are decentralized structures commonly found?

  Tech startups
• What is a characteristic of tech startups regarding management structure?

  They often use decentralized and flat structures
• What are the pros and cons of centralized and decentralized structures?

  Centralized Structures:

  • Pros: Consistency, control, clear authority
  • Cons: Slow decision-making, less innovation

  
  

  Decentralized Structures:

  • Pros: Faster decision-making, encourages creativity
  • Cons: Potential inconsistency, requires skilled labor