Organisational structures (AQA GCSE Business): Flashcards
📚Flashcards
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12 cards from this deck
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Practise the cards
12 cards from this deck
What is centralisation?
What is centralisation?
Decision-making concentrated at top with senior management
What is decentralisation?
What is decentralisation?
Decision-making authority distributed throughout organisation
What structure do most large businesses use?
What structure do most large businesses use?
Combination of centralisation and decentralisation
Example industry using centralised structure
Example industry using centralised structure
Fast-food businesses
Why fast-food chains use centralisation
Why fast-food chains use centralisation
Ensure consistency in customer experience and product quality
Centralisation benefit: bulk buying effect
Centralisation benefit: bulk buying effect
Economies of scale - cheaper unit costs
Centralisation drawback for local managers
Centralisation drawback for local managers
Lack of authority to make best decisions for their areas
Examples of decentralised businesses
Examples of decentralised businesses
Supermarket chains and hotel chains
Decentralisation benefit: decision location
Decentralisation benefit: decision location
Decisions made closer to customers and local needs
Decentralisation effect on staff motivation
Decentralisation effect on staff motivation
Improved motivation through increased responsibility
Decentralisation drawback: consistency
Decentralisation drawback: consistency
Difficult to ensure consistent practices across locations
Trade-off: centralisation vs decentralisation
Trade-off: centralisation vs decentralisation
Control & consistency vs flexibility & local responsiveness