Discuss The Advantages And Disadvantages Of Centralised Decision Making

1193 Words3 Pages
bulb-icon

Recommended: Decision making easy

Section C
12
13
In the structure is a tall structure which is appropriate for Dominos because it means that there is close supervision because there is many employees and high ratio of turn over which means that they need a close supervision because they want everyone to know the same rules, regulations and have the sme level of service and expectation as other stores. This type of structure is good because it means that it means that the top managers have an overall picture of the business and can make better decisions about things to do with budgets.
14
Two types of decision-making are centralised and decentralised. Centralised decision making is where the decisions and authority is at the top levels. In centralised is where authority power …show more content…

Also often with centralising decision-making it means that the decisions made are made quicker as they have a better handle of what the business needs and wants as they can see the overall picture.
Disadvantages for decentralising the decision-making is that there are too many chiefs and not enough Indians which mean that it is harder to control the decisions being made such as policies and practices that are put into place at each location to ensure consistency and quality.
Disadvantages for centralising decision-making is that since there are many managers and layers of hierarchy it means that it is more bureaucratic and there maybe also a absence of authority which means that may decrease the drive of managers
16
Mechanistic is where the work is divided it certain specialist task and is centralised decision making where decisions are made higher up in the hierarchy which is well defined. Characteristically in mechanistic it is where each person matches or does one …show more content…

Also with this clear level of hierarchy the employees can all interweave together to do the work and the functions and jobs can run smoothly without any problems. This will also give Dominos immediate efficiency which will make the managers and customers satisfied and happy. From this Dominos can put employees into specialised tasks to continue efficiency and performance. Putting in place a formal structure the staff can implement policies and regulations that fit the business to reach the goals and targets set by the company to increase revenue, profit. Dominos having a formal structure with defined goals, targets it means it makes employees want to work towards them and perform to get the incentives and promote within the

Show More
Related

  • Cupcakes-Palooza Case Study

    836 Words  | 2 Pages

    Secondly, CP should incorporate a more flexible environment using an organic structure while incorporating a horizontal approach that will allow them to delegate authority and responsibility. The organic structure would require CP to “depend heavily on an informal structure of employee networks. Astute managers are keenly aware of these interactions, and they encourage employees to work more as teammates than as subordinates who take orders from the boss”

    Read More

  • Asda's Hierarchical Structure Paper

    1800 Words  | 4 Pages

    If it was a hierarchical then it will take a long time for the information to get to them. The workers will know exactly what they have to do because span of control is small. Also, Castell is saving money because of the size of the business. Disadvantages for Castell: Since Castell only have three directors they will have quite a few people reporting into them.

    Read More

  • Analysis Of Chipotle

    729 Words  | 2 Pages

    Under corporate governance, the Board of Directors has majority power. After shareholders elect the Board, said Board selects the CEO who is responsible for managing the business. The key problem with Chipotle’s central and formal governance is that their strategy does not encourage innovation or employee moral. Instead, the Board of Directors decides what they feel Chipotle’s franchisees should implement, and tells managers to relay their decisions to in-store employees. Therefore, corporate representatives strive to improve in-store quality through strict supervision of each franchisee. They make decisions regarding all processes from the preparation of the product, customer service, and marketing strategies, which are enforced at each location. This system is slow and decreases efficiency. Since store employees are kept out of the immediate circle, it is difficult for them to have confidence in Chipotle’s operations, resulting in low employee empowerment. Two solutions to consider include bridging gaps between hierarchical levels and making the company more decentralized. Chipotle can implement a few liaisons (brokers and structural holes) to make sure that all professional networks within corporate and store levels are communicating effectively and working as a

    Read More

  • Swot Analysis Of Wendy's

    1855 Words  | 4 Pages

    The advantage of Wendy’s organizational structure is that it is a control for support in global operations. This enables the effectiveness of the centralized function based groups. They implement policies and the necessary strategies in the organization.

    Read More

  • Birch Paper Company Case

    1657 Words  | 4 Pages

    The Company observes the practice of decentralization where the responsibility and authority in all decision-making for the divisions’ operations lie in its respective division managers, except those relating to overall company policy.

    Read More

  • AES Corp

    3072 Words  | 7 Pages

    The organization has five hierarchical levels, consisting of a set of divisional/regional managers, and three additional levels that exist in the plant. The plant organization consists of three levels: the plant manager, the seven area superintendents, and the front line people. The two cofounders decided “to avoid creating bureaucratic organizations resembling the government” because of their bad experiences working for the government. As a result, the structure of AES is highly decentralized. This allows managers and employees to both take ownership of their roles and have input on the success of the company. It also allows individuals to develop leadership skills for potential promotions. This flat management structure encourages high employee involvement in all decision-making opportunities.

    Read More

  • Organisational Structure, Culture, and Management Style of a Business

    1176 Words  | 3 Pages

    Looking at IKEA’s organisational structure, the chain of command shows a clear line for messages within functional departments, so therefore; it leads to good communication. For example, looking at the organisational structure of IKEA, there is a clear communication within a human resources department. However, the chain of command is very long from the top to the bottom of the organisation because, there are too many levels of management. This will lead to poor communication. For example, it takes decisions a long time to reach the workers at the bottom of the organisation structure.

    Read More

  • Three Characteristics Of Customer Service Training In Mcdonalds

    1135 Words  | 3 Pages

    It doesn’t matter if you’re cleaning toilets, making burgers or fries; McDonald’s is all about structure - who does what, hierarchy - who leads

    Read More

  • A Case Study of Toyota Motor Company’s Strategic Implementation Factors and how they affect the Company’s Operations.

    926 Words  | 2 Pages

    Organizations must operate within structures that allow them to perform at their best within their given environments. According to theorists T. Burns and G.M Stalker (1961), organizations require structures that will allow them to adapt and react to changes in the environment (Mechanistic vs Organic Structures, 2009). Toyota Company’s corporate structure is spelt out as one where the management team and employees conduct operations and make decisions through a system of checks and balances.

    Read More

  • Angelo's Pizza Case Study Answers

    749 Words  | 2 Pages

    Three HR management implications for Angelo 's Pizza vision statement: to expand the number of stores and eventual franchise, while focusing on serving high quality fresh ingredients:

    Read More

  • Decision Making In Global Organizations

    1644 Words  | 4 Pages

    Consider whether centralized and decentralized business structures will make different business decisions depending on the cultural values in the region.

    Read More

  • Decision Making in Business

    1298 Words  | 3 Pages

    “Decision making is a process of first diverging to explore the possibilities and then converging on a solution(s). The Latin root of the word decision means "to cut off from all alternatives". This is what you should do when you decide.” (Kotelnikov, 2008). In fact, the decision making process helps reduce doubt and uncertainty about alternative choices to allow individual to choose the best reasonable choice. In addition, the decision making process can make the difference between a successful and an unsuccessful organization. Consequently, management tries to use the best techniques and tools possible to make the best decision. Nowadays, most organizations seem to think that they have the most effective and efficient decision making process. So what are the different styles of decision making processes have organizations implemented? In order to answer this question, the team members will investigate and observe the decision-making processes most prevalent in their organization. As a result, these papers will first compare and contrast the problem identification and formulation styles in the team members’ organizations. Then the most favorable aspects of each style will be discussed to describe a process by which a problem can be identified and described to stakeholders in a manner that is sensitive to their perspective.

    Read More

  • Restaurant Management

    2839 Words  | 6 Pages

    Staff developing is vital for restaurants to run smoothly. A restaurant is composed of two sectors; a Front of House (FOH) and theirs a Back of House (BOH). The front of the house is what is visible to the customers? eye. Customers can not see the back of the house. Back of the house is where cooks prepare the food and where the dishwasher is located. Manager Brian Aycock explained that if a manager develops his staff, it makes the restaurant run smooth. The store will profit, the employees and the guest will be satisfied (Aycock). If the staff is not getting along, a lot of tension will grow inside the restaurant and co-workers will not work with one another as a team. In return the customers will not be happy and the profit will not be as desirable. When customers are not happy with the visit they had at the restaurant, they will then spread the word to all their friends.

    Read More

  • What Is Decision Making Essay

    1299 Words  | 3 Pages

    One of the most important topics or factors in any group/team is decision making. The decision-making process will have a direct impact on the outcome of a project, the way a team works operates, and so much more. This is usually not an easy process, because decisions that need to be made are often complex, and have multiple factors involved. When making decisions, it is best to try to make the most informed decision possible, as we all know the risks of going blind into a decision or situation. If teams take the time to learn more about the decision-making process, they will find it easier to make smarter decisions.

    Read More

  • Business Analysis: The Case of 7-Eleven Inc.

    2006 Words  | 5 Pages

    7-Eleven focuses on teamwork and encourages all franchisees to train every employee to be a leader instead of a follower. As an employee in 7-Eleven, I have been always told to dream as if one day I would be franchisee of a 7-Eleven store. One other thing the corporate tells the owners to look at is hire someone who would become a franchisee one day. Managers are expected to give out extrinsic rewards, and be a charismatic leader.

    Read More

More about Discuss The Advantages And Disadvantages Of Centralised Decision Making

Open Document