Question
"Centralization and Decentralization”, Imagine you are a general manager of a well know company producing dairy products. Which of the mentioned method (Centralization and Decentralization) you prefer and choose for your making decision process?
Answer
The dairy products making industry is known to source and produce from a number of different geographical locations, because the raw material from each geographical region has its own characterstics which makes it unique. With a centralised process, the responsibilities can not be assigned to subordinates located in these locations, and they need to take permission of the central authority for every decision. This makes the entire process circuitous and time consuming, which might lead to loss of opportunities and also delays and damages. As a result, a decentralised structure that empowers the subordinates to take decisions related to day to day activities is more appropriate with power to make the strategic or core decisions vested in the General manager's authority.
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