What are the factors that affect centralization and decentralization?

The factors affecting centralization and decentralization are: product structure and production technology characteristics, environmental conditions and business strategy, enterprise scale and organization form, enterprise management level and cadre conditions.

1, business situation and nature of business activities;

2. The scale, space and distribution breadth of the organization;

3. Importance of decision-making and quality of managers;

4. Require the consistency of principles and policies and use modern control means;

5. The history of the organization and the influence of the leader's personality.

Extended data:

Excessive centralization has brought various disadvantages, the most important of which are as follows:

1, reducing the quality of decision-making.

In a highly centralized organization, with the expansion of organizational scale, the top managers of the organization are far away from the grassroots, and the problems at the grassroots level can only be reported after asking for instructions, which not only affects the correctness of decision-making, but also affects the timeliness of decision-making.

2, reduce the adaptability of the organization.

Organizations in a dynamic environment must constantly adjust according to the changes of various factors in the environment. An overly centralized organization may make all departments lose the ability of self-adaptation and self-adjustment, thus weakening the overall adaptability of the organization.

3, is not conducive to mobilize the enthusiasm of subordinates.

Due to the high degree of centralization, almost all decision-making power is concentrated in the top management. In this way, middle and lower managers become pure executors, without decision-making, discourse and autonomy. In the long run, their enthusiasm, creativity and initiative will be erased, their enthusiasm for work will disappear and their concern for the organization will weaken.

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