how much authority are managers willing to disperse throughout the organization? managers who emphasize centralization disperse only the smallest possible amount of authority.proponents of centralized management feel they can most effectively control and coordinate company activities by retaining most of the authority.



managers who emphasize decentralization disperse great amounts of authority to subordinates.decentralization allows middle and supervisory management more leeway in making decisions than centralization.for example ,middle managers in a decentralized operation are likely to make many financial ,production,and personnel decisions themselves rather than obtaining approval from their superiors.this allows higher-level managers to devote their time to other problems.decentralization also has the advantage of allowing decision making to occur where the decisions will actually be implemented.the result should be a more effective decision.



sometimes companies are forced to decentralized when they have grown too large for one person to control.korean-based lucky-goldstar,founded by the koo family ,started out in 1947 by selling face cream and rapidly expanded into a huge coporation selling electronics,chemicals,and financial services.as sales in 34 countries hit $25 billion,however,product quality began to fall.many felt it was because chairman-and family head-koo cha-kyung continued to make a lot of the decisions.says one senior exec,"nobody had the guts to tell him to get out of the daily management and let the professionals run the bussiness." finally,koo agreed to delegate more authority to his managers ,to allow them to respond more quickly to market changes.says top manager byun,"we are becoming more efficient in management,quicker in decision making."



while most management experts favor decentralized over centralized

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