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26-11-2017, 08:31 PM

Is principle of centralisation and decentralisation followed in domino's

jaseela123d · 27-11-2017, 09:01 AM

When the decision to make the decision falls on senior management, it is called "Centralization". When the power to make a decision is given to the person doing the work, it is called "Decentralization". Friar believes that there must be an adequate balance between centralization and decentralization. An organization must not be completely centralized or decentralized, there must be a coincidence between the two depending on the size, nature and location of the company.

Top management must maintain the authority to make important decisions of the organization, but the appropriate authority should be delegated to lower level employees to make decisions at the departmental level. This will facilitate the correct and timely functioning in the organization. And senior management will be free from the additional burden of taking and managing each and every one of the organization's issues. All lower level problems will be handled only at that level, this also gives a feeling of superiority to lower level employees, which motivates them to perform better.

Positive impacts of this principle:

• Facilitates the proper functioning of the organization;

• Timely completion of the work;

• No additional burden for top management;

• Motivate lower level employees; Y

• Decisions will be made at the action level.

Consequences of the violation of this principle:

• Overload in senior management;

• Difficulty in achieving the organizational objective;

• Delay in the action, because the decisions of senior management should be expected.

• Sometimes creates conflict between management and employees; Y

• Ego crashes in case of a different decision for a lower level and a higher level management.

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