Decentralised structure

• What is a decentralized structure?

  Control and decision-making are delegated
• Who typically delegates decision-making in a decentralized structure?

  Highest layers of management like CEOs
• What are some departments that may receive delegated decision-making?

  HR, operations, finance, marketing
• How does decentralization affect decision-making flexibility?

  It allows quicker local decision-making
• What is one pro of decentralized structures related to employee motivation?

  Empowers workers, increasing their motivation
• How can decentralization lead to increased innovation?

  More motivated employees take initiative
• What is a benefit of internal recruitment in decentralized structures?

  Reduces recruitment costs and time
• What is a disadvantage of decentralized structures regarding consistency?

  May lead to less consistency in objectives
• How can decentralized structures affect customer experience?

  Different branches may provide varied experiences
• What can result from quality issues in decentralized structures?

  Potential loss of reputation for the business
• What is critical for successful delegation in decentralized structures?

  Skills and experience of delegated individuals
• What happens if poorly skilled individuals are delegated responsibilities?

  It can lead to poor motivation and quality
• When might a centralized structure be preferred over decentralization?

  During a financial crisis for quick decisions
• What are the pros of decentralized structures?

  • Increased motivation among employees
  • Flexible decision-making at local levels
  • Opportunities for internal recruitment
  • Potential for increased innovation
• What are the cons of decentralized structures?

  • Less consistency in objectives and culture
  • Varied customer experiences across branches
  • Possible quality issues affecting reputation
• What factors influence the effectiveness of decentralized structures?

  • Skills and experience of delegated individuals
  • Consistency in company objectives and culture
  • Ability to respond to local market conditions