Chapter

7.5. Degree of Centralization*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. What factors determine the optimal span of control?

   "If hundreds of employees perform the same job, one supervisor may be able to manage a very large number of employees. Such might be the case at a clothing plant, where hundreds of sewing machine oper

2. What are the benefits and limitations of centralization?

   "The final component in building an effective organizational structure is deciding at what level in the organization decisions should be made. Centralization is the degree to which formal authority is

3. What are the benefits and risks of decentralization?

   "Decentralization is the process of pushing decision-making authority down the organizational hierarchy, giving lower-level personnel more responsibility and power to make and implement decisions. Ben