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Advantages
- provides a clear sense of direction.
- decisions are based on business logic.
- likely that more than one person will be involved in the process, which will reduce the possibility of bias.
- ensures that decisions are monitored continually and reviewed.
- flexible
- if all decisions are based on rational thinking, overall success is more probable.
- easier to find a policy that has been developed on the basis of good planning.
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Disadvantages
- suitable for small organizations only; unsuitable in big firms.
- managerial decisions may involve strictness and stress for mangers due to need for complete control over the work place.
- influences feelings of pressure among workers.
- may de-motivate workers
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