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Centralisation and Decentralisation

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Centralisation and Decentralisation Definition

Centralisation and decentralisation refer to the extent to which decision making power is devolved in an organisation, or the degree of delegation of duties, power and authority to lower levels of an organisation (Hicks & Gullet, 1981). Organisations which have a high degree of delegation of power are thought to be decentralised. Organisations which have a lower degree of delegation of power tend to be centralised. A decentralised structure often means power over both operational issues and strategic direction is devolved to lower levels in the hierarchy.

Centralisation and Decentralisation Description

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Centralisation and Decentralisation Examples

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Centralisation and Decentralisation Implementation

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Centralisation and Decentralisation Strengths

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Centralisation and Decentralisation Value Focus

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Centralisation and Decentralisation Life Cycle

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Centralisation and Decentralisation Sector Focus

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Centralisation and Decentralisation References

  • Anon. (2007) A fast turnaround at Hewlett-Packard; Quick, easy wins or long term promise? Strategic Direction, Vol. 23 (2), p. 25.
  • Atkinson, W. (2006) Centralised Procurement: Success Breeds Success. Available at: http://www.purchasing.com/article/CA6341094.html
  • Johnson, G., and Scholes, K. (2002) Exploring Corporate Strategy: Text and Cases. Prentice Hall, USA.
  • Hicks, H., and Gullett, C. (1981) Management, McGraw Hill, USA.

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