Decision making

Decision making

Centralised: Decision made at the top of the hierarchy

  • Multi location markets
  • Control is maintained to keep consistency of customer experience and quality
  • Encourages layers creating higher costs
  • Act as demotivator for junior managers as they have no power
  • Customer – bad experiences cannot get decision quickly from management as has to be approved by head office

Decentralised: Decision making throughout the business

  • Chain
  • Empowered and enabled staff
  • Deal with customer needs better
  • Improved level of customer service
  • Flatter hierarchy creating lower cost
  • Empowered means motivated
  • Difficult to respond to legal citation
  • Not strategic
  • Harder to provide consistent
  • Financial uncertainty