What are the differences of a centralised and a decentralised organisational structure?
When referring to organisational structure, centralised means that generally, there is very strong control down from senior executives, usually along strict functional lines. Other features are lots of layers between front-line/shop floor positions and the CEO. Responsiblity and accountability is concentrated in the centre hence centralised. Decentralised organsiations can be organised on functional or more likely geographical or brand lines. Accountability and responsibility for financial performance is delegated to a senior executive level. For example, a senior executive/director/VP is put in charge of a particular country and has delegated profit/loss responsibility for all the functions in that territory. These organisations tend to have fewer levels of management and cross-functional working within the delegated areas. A flat structure is a different type of organisation and indicates that there are very few levels of management between CEO and operational levels. These tend to b
