Friday, July 3, 2009

Business Centralisation:

According to the question of centralisation or decentralisation is a simple question of proption a matter of ifnding the optitum degree for a particuler concern in his view everything that oncreases the improvent of the perfornmance of the subordinates role is decentralisation and that which reduces it si centralisation.
The degree of centralisation will be different in each case small firms for example are likely to have absoulte centralisation because in thier case the manageers orders are directely trnsmitted to subordinates in this case of a large firm however the managers orders have to pass through a number of intermediaries to reach the subordinates.
To what extent a manager can centralise authorit in his hands will depend on his intelligence experience and decision making ability. If the manager does possess these qualities he would centralise all decision making in his hands such that his asssistans would be reduced to a position where they have little else to do except to carry out his orders in case he lacks these qualities he will largely depend on his collegues and confine himself to giving general directions only.

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