How Do the Differences Between Centralization and Decentralization Affect Decision

question 112

Essay

How do the differences between centralization and decentralization affect decision making? Why would a Company decentralize its operations?

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Definitions:

Open-book Management

A management approach where companies share financial and operational information with all employees to involve them in decision making.

Empower Employees

The process of giving staff members the authority, tools, and information they need to make decisions and contribute to the company's success.

Financial Reports

Official records that detail a company's financial performance over a specified period, including income statements, balance sheets, and cash flow statements.

Compressed Work-week

An alternative work schedule that allows employees to work their full required hours within fewer days per week, often resulting in longer daily hours but a shorter workweek.