n an attempt to adopt a system to enhance organizational performance, Mr. Addison is torn between adopting a centralized decision-making system or a decentralized decision-making system. Which of these two systems will you recommend to him and why?
In an attempt to adopt a system to enhance organizational performance, Mr. Addison is torn between
adopting a centralized decision-making system or a decentralized decision-making system. Which of
these two systems will you recommend to him and why?
The decision making system of the organizations should be such that it helps in further analysis of the production and costs of the firms in an economy. The organization should resort to adopting systems that will make them lead to efficient decision making and the decisions should be in acceptance from all the people.
A decentralized decision-making system is much more important and efficient than a centralized decision making. In a decentralized decision making, the decision is made by a larger group involving various levels or stages in an organization. The people can put forward their view points and a combined decision can be made in consideration to the people and the management in general.
In a centralized decision-making, the decisions are done by a central authority only and are imposed on to the other employees in the organization. The centralized decision-making can become biased as compared to decentralized decision making.
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