Purchase Solution

Centralization vs. Decentralization

Not what you're looking for?

Ask Custom Question

What are the major advantages and disadvantages for centralizing or decentralizing a MNE? What are the factors that support centralization or decentralization? In your estimation what system works best? Why?

Purchase this Solution

Solution Summary

The expert examines the major advantages and disadvantages for centralizing or decentralizing MNE. What systems works best is determined.

Solution Preview

Centralizing or decentralizing a MNE:
Centralization of the MNE is the process where the authority and power of an organization lies with the Head office of the company. This power includes planning, decision-making and delegating authority and other important business activities. In this type of arrangement the top management takes all the important decisions without getting the lower management involved in this process. These decisions are enforced on the lower tiers of the organization (Daniels, Radebaugh & Sullivan, 2009).
Decentralization is becoming common these days due to growing organization sizes. In large size organizations, power is distributed at different levels in order to run the organization efficiently. In a decentralized arrangement, the organization level and middle level of the management has some power within them, they also have decision making power at local levels.

Advantages of ...

Purchase this Solution


Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.