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