1. Management Structure

2. Centralised or decentralised? The decision will be based on the following factors: - The size of the organisation The scale/ importance of the decision The level of risk The corporate culture Management attitudes and competencies The use of ICT

3. Centralisation and decentralisation Decision-making power can be either kept in the hands of a few people or it may be spread out among the workforce. The extent that decision-making is spread out amongst the workforce will depend on the characteristics and skills of managers and workers, the degree of trust and the corporate culture.

4. Centralised Structure

5. Centralised Structures In centralised structures the vast majority of decisions are made by a very small number of people. All decision are made by the person in the centre, without any form of communication between other members of the organisation.

6. Centralised Structures Decision Maker AdvantagesDisadvantages Rapid decision making Better control Better sense of direction can benefit from the decision making of experienced senior managers. Possible delays Increased pressure and stress for the decision- maker Inflexibility De-motivating for staff

7. Decentralised Structure

8. Decentralised Control Some decision making authority and responsibility is passed on to others in the organisation. E.g. some departments or regional offices may be empowered to make decisions on behalf of the organisation. Key decisions are made centrally.

9. Decentralised Structures AdvantagesDisadvantages Input from workforce Allows better delegation of responsibility Specialist people with the correct skills can be hired Speedier day-to-day decision making Higher morale Improved accountability Encourages teamwork Direct control of the owner is reduced Owner may not know the strengths and weaknesses of each worker Greater chance of mistakes Greater reliance on effective communication Duplication