Centralization

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The extent to which organizations centralize or decentralize decision$-$making varies widely. In top$-$down organizations, decision$-$making is centralized. Senior managers make virtually all the decisions about how an organization operates, give lower$-$level manager's and employees little input into these decisions, and expect them to implement their directives without question. In highly decentralized organizations, lowerlevel managers and employees have much more latitude to decide how to act in areas of their expertise, such as how to treat a dissatisfied customer or whether to launch a new project.

As you move into a more functional structure, select the degree of centralization that better impacts vertical coordination by influencing the amount of decision$-$making that will be done at the upper and lower levels. In each row, check all people who would be allowed to make these decisions$-$there may be multiple selections in each row.

Top Management

Supervisors

Strategic

What should our three$-$year vision be$?$

Product

What new products should we add to our site?

Implementation

How do we serve our customers?

Individual

Contributors