Question: Need assistance to responding to discussion question answer in a personal opinion in 100 words. There are advantages and disadvantages with corporations operating in centralized
Need assistance to responding to discussion question answer in a personal opinion in 100 words.
There are advantages and disadvantages with corporations operating in centralized and decentralized fashions. A centralized corporation is one where the top group of management controls the majority of the decision making and decentralization where local or lower level managers have more control over decisions. One of the main advantages centralized management control is that it creates consistency across the board that comes from the top down. You see consistency in the food, uniforms, ect no matter where you are. Even if there are regional differences they are consistently different. A prime example of this for me is in New Mexico people eat green chile on EVERYTHING and corporations add things like green chile cheeseburgers to their menu to appeal to local market that are not offered in other markets and I am sure the same goes for other items in other areas. However when you go somewhere like McDonalds because they are centralized every McDonalds in our area has the green chile cheeseburger on the menu not just some throughout the area. However, in the same rearguards to this it can become a disadvantage if the corporation isnt responsive to local market needs which can happen very easily in a centralized controlled corporation and they do not put in the resources to determine regional needs. In a decentralized controlled corporation an advantage is the managers that are making these decisions are on the ground in the local areas and have a much stronger grasp on what is needed in their particular environment which makes them more locally efficient but this can also create disorganization and inconsistency among different locations. Although you can create local efficiency with decentralized management one of the risk that is run with that is a great deal of responsibility is being put on local management. This requires that there is a great deal of trust and confidence in the local managers and that they are properly trained. It also opens up opportunities for companies to get in trouble because they do not have the same level of structure for things like HR and policies when they are done on a decentralized basis. Companies can also evolve from centralized to decentralized over time and vice versa what meets their needs at one point in time may not meet them at a later date and they may find more advantages for them in the alternative.
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