“Budget leads to a centralized control on many decentralized activities”. Comment.

 Decentralized Management:

Decentralized organizations have decisions coming from all levels of management towards the same goal. Decentralized management is the opposite – the upper levels of management transfers some of the decision-making processes onto lower levels, and even to individual employees.

The overall authority is still maintained by top level managers, who make policies that influence the major decisions of the company, but most decision-making responsibility is delegated to the lower levels. This form of management would, for example, allow a manager at a call center or retail store to make instant decisions that impact their work environment.

Decentralized management is found most often in areas with a lot of direct contact with clients and customers, since it allows the managers closest to the “Action” have more flexibility. Decentralization should not be confused with the allocation of tasks to individual members of the management team,

since this is an individual action and does not always reflect the broader trend of the company. An increase in duties of the lower-level employees can be seen as “decentralizing”, while decreasing their duties is “centralizing”.

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