11. Using the frameworks above, Be able to discuss and utilize the centralized vs. decentralized decision-making framework to AMAZON IN DEPTH!

Determining How Much Authority to Delegate Organizational Approaches to Decision Making: Centralized Decentralized Decision Making: Decision Making: Authority is retained by Authority is delegated to top management. lower-level managers and employees. Basic Tenets of Centralized Versus Decentralized Decision Making Centralized Organizational Structures Basic tenets Decentralized Organizational Structures Basic tenets Decision-making authority should be put in the hands of the people closest to, and most familiar with, the situation. Decisions on most matters of importance should be in the hands of top-level managers who have the experience, expertise, and judgment to decide what is the best course of action. Lower-level personnel have neither the knowledge, time, nor inclination to properly manage the tasks they are performing. Strong control from the top is a more effective means for coordinating company actions. Those with decision-making authority should be trained to exercise good judgment A company that draws on the combined intellectual capital of all its employees can outperform a command -and-control company