Centralization and decentralization: These two principles are linked to delegation. With centralization
there will be minimum delegation to managers in other areas, departments or
divisions of the business. Decentralization, passing decision-making authority
to managers in other areas, departments or divisions in the business, allowing
decisions to be taken away from head office, must involve delegation. A centralized
organization would insist on all sections of the business following the same
procedures, which gives the business a feeling of uniformity and consistency.
Head of office will be able to exert considerable control over all
operations. Decentralized organizations will allow staff to be empowered
and this demonstrates trust in them. Decisions will be taken ‘closer to the
action’ in terms of junior managers being more aware of local factors or closer
to the consumers themselves.
is a very important principle that can have far reaching effects on both the organizational
structure and the motivation levels of subordinate employees. Delegation means
the passing down of authority to perform tasks and take decisions from higher
to lower levels in the organization. As Herzberg and other researchers pointed
out, this process can be very beneficial to motivation. Generally, the wider
the span of control, the greater the degree of delegation that is undertaken.
Imagine a manager with a span of control of 15 subordinates. It might be
impossible to closely control the work of each of these every day – the manager
would be allowed no time for more important strategic matters. Thus, the
manager will delegate authority to his staff, and he will trust them to perform
well. Clearly, they are accountable to the manager for good performance; but
the manager to be empowered and this demonstrates trust in them. Decisions
will be taken ‘closer to the action’ in terms of junior managers being more
aware of local factors or closer to the consumers themselves.