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All 10 Flashcards — Centralisation and decentralisation
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Question
Define centralisation.
Answer
Centralisation is when decision-making authority is kept at the top of the organisation by senior managers.
💡 Hint
Decisions at the top.
Question
Centralisation means decisions are made at the ______ of the organisation.
Answer
Top.
💡 Hint
Top = centralised.
Question
Define decentralisation.
Answer
Decentralisation is when decision-making authority is passed down to lower levels and local managers/teams.
💡 Hint
Decisions pushed down.
Question
Decentralisation pushes decision-making ______ to lower levels.
Answer
Down.
💡 Hint
Down = decentralised.
Question
Centralisation often leads to slower decision-making because approvals take ______.
Answer
Time.
💡 Hint
More approval steps.
Question
Give one advantage of centralisation.
Answer
It ensures consistent policies and decisions across the whole business.
💡 Hint
Consistency.
Question
Give one advantage of decentralisation.
Answer
It enables faster decision-making because local managers can respond quickly to local conditions and customer needs.
💡 Hint
Speed + local knowledge.
Question
Decentralisation can increase motivation because managers feel ______.
Answer
Trusted.
💡 Hint
Empowerment.
Question
Exam tip: When evaluating centralisation vs decentralisation, what must you consider?
Answer
The business size, locations, manager skills, and whether decisions need consistency or fast local responses.
💡 Hint
Fit to context.
Question
Give one disadvantage of decentralisation.
Answer
Decisions may become inconsistent across departments/locations, making coordination harder.
💡 Hint
Inconsistency risk.
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Full study notes for Centralisation and decentralisation
Topic 2.2 hub
Organizational structure
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