Centralised Structures vs. Decentralised Structures

• Centralized structures involve control and decision-making by the highest layers of management
• Centralized structures

  • Control and decision-making made by the highest layers of management
  • Suit tall structures
  • Suit authoritarian management
  • Suit businesses with less skilled labor
  • Commonly used in fast-food franchises for consistency
• Decentralized structures involve control and decision-making delegated to middle or lower levels of management or departments/locations
• Decentralized structures

  • Control and decision-making delegated to middle or lower levels of management or departments/locations
  • Suit flat structures
  • Suit democratic management style
  • Suit businesses with more skilled labor
  • Suit environments focused on innovation and creativity, like tech startups
• Centralized structures go hand-in-hand with tall structures


  Suit authoritarian management
• Centralized structures go hand-in-hand with businesses with less skilled labor


  Seek compliance and obedience from the labor force
• Centralized structures commonly used in fast-food franchises

  For consistency and standardized menus across branches
• Decentralized structures go hand-in-hand with flat structures


  Suit democratic management style
• Decentralized structures go hand-in-hand with businesses with more skilled labor


  Focus on innovation and creativity
• Decentralized structures commonly used in tech startups

  Due to fast-paced changes, need for innovation, and skilled workers like software engineers