Decentralisation

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Decentralisation

Advantages

  • it can empower local managers, encouraginfg them to be more innovative
  • local knowledge may have beneficial effects on sales and promotions targeted more accurately
  • reduces volume of day to day communication
  • senior managers have more time to think of a long term strategy for the business
  • flexibility improves
  • enhances motivation

Disadvantages

  • customers may not like the reduction in uninforminty of branches
  • focusing on local issues may mean local managers loose corporate image

Evaluation

The power of authority to make decisions is delegated from head office management in local branches or levels further down the hierachy

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