In organisations with strong centralised leadership, employees usually have well-defined job descriptions and roles. When employees are cognisant of their duties, as well as the duties and responsibilities of their co-workers, they are usually more likely to be productive and feel more confident in the process of making decisions within their ambit of responsibility. Morale might also improve as employees may be less likely to resent each other for either overstepping boundaries or, at the other end of the spectrum, not working hard enough.
When employees have well-defined responsibilities, it can be simpler for management and the HR department to determine if there is a need for creating new roles or hiring more employees. This can help keep costs down by avoiding unnecessary hires while also making it easier to recruit qualified employees for necessary positions.
What Is A Centralised Organisation?
A centralised organisational structure is a set-up in which most powerful and critical decision-making responsibilities are concentrated with a few key leaders. A centralised organisation typically houses its primary decision-makers or executives in a central headquarters with offices as well as meeting areas for leaders to discuss business.
What Is The Advantage Of A Centralised Structure?
This structure of management can be extremely efficient and organised as objectives can be set and managed by upper management.
What Are The Disadvantages Of A Centralised Structure?
This organisational structure has multiple managerial levels which can result in ineffective communications owing to hierarchy in the management structure.
What Is A Decentralised Organisation?
A decentralised organisation can be described as a company that is operated according to delegation of decision-making powers as well as flexible processes. In straightforward terms, executives or business owners assign tasks to management and employees and maintain open channels of communication.
While management is given the latitude to “run their department as they see fit” these people are still held accountable for production. The owner or business executives will rely heavily on management to instil and manage the processes and guidelines they have set in place but will allow the manager to bring their own style into the mix.
What Are The Benefits Of A Decentralised Organisation?
The benefits to a decentralised organisational structure are that it is more flexible as well as open to change. There is room for innovation in addition to individual thought-processes which could benefit the company as a whole or even one simple task.
Employees in this type of environment favour change and like the fast-paced environment which allows them to have input and feedback. These employees can be empowered by having more autonomy to make their own decisions which imbues them with a feeling of importance and makes them feel as if they have more input in the direction of the organisation.
A decentralised organisation also allows employees to make better use of the knowledge and experience that they have gained and to implement some of their own ideas. Empowered employees can cut the red tape of an organisation by taking the initiative to get the job done with minimal managerial approvals.
This type of structure allows the organisation to hire managers with different sets of expertise.
What Are The Disadvantages Of A Decentralised Structure?
This type of structure consists of a number of managers at the same level which often makes coordination difficult as they are in different regions.
In a marketing organisation, it is very necessary to decide whether or not the organisation will be a centralised or decentralised one.
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