Slides 17

Centralization / Decentralization:
• Centralization describes the degree to which decision-making is concentrated at a
single point in the organization. 
Centralization ma top level management tamam decision leti h or employee usko follow krty
hn
Jabk decentralization m decision making was push down to lower level manager or employee
Next slide 18
Centralization m middle management k pass decision making m koi rights ni hoty
This system is run in larger corporate organizations
like Apple is an example of a business with a centralized management structure. Apple ki jo
tamam decision making CEO krta h Apple has viewed as an organization that maintains a high
level of centralized control over the company’s strategies such as new product development,
markets to operate in, etc.
Slide 19
A decentralized organizational structure is one in which senior management has shifted the
authority for some types of decision making to lower levels for fast and effective decisions and
to improve efficiency. By letting the middle and lower level in the process of decision-making,
the top management can focus on other major decisions. This also increases the responsibility
and accountability of the employees.
For example
Ak HR manger h jisny vendor k sath ak deal finalise krni h. agar organization centralized h tu
usko top level management k approval ki zarorat ho gi If there is a delay by the management,
he might lose the deal.
Agar company decentralized ho gi to employee khud hi deal finalise k ly ga without
permission of top management
in turn, results in finalizing cost-effective and quick decision-making.
Slide 20
It is the element that determines the company’s rules and guidelines as adopted by
management. It also determines company culture aspects, such as whether employees have
to sign in and out, how many breaks workers can take and how workers at all levels are
expected to dress for work.
Slide 21
While formalization reduces ambiguity rule and regulation provide krny sa employee ko ak
direction milti h goal ko achieve krny k liya
A high degree of formalization may actually lead to reduced innovativeness because
employees are used to behaving in a certain manner.
strategic decision making in such organizations often occurs only when there is a crisis. A
formalized structure is associated with reduced motivation and job satisfaction as well as a
slower pace of decision making