Centralization vs Decentralization

The video explores centralized and decentralized organizational structures. Centralized organizations concentrate power in a single leader or small group, leading to tight control but limited flexibility and poor upward communication. Decentralized organizations distribute power across teams, enhancing flexibility and adaptability but requiring effective coordination. The video compares these models, highlighting their strengths and weaknesses.

What is a key characteristic of a centralized organizational structure?

• Team-based work

• Top-down communication

• Flexible hierarchy

• Distributed decision-making

In a centralized organization, what is a common issue with upward communication?

• It is too frequent

• It is often distorted or tainted

• It is always accurate

• It bypasses middle management

What is an advantage of a centralized organizational structure?

• High flexibility

• Strong control and stability

• Rapid adaptation to change

• Excellent upward communication

How is decision-making power distributed in a decentralized organization?

• Limited to frontline employees

• Concentrated at the top

• Centralized in one department

• Spread out among teams

What is a loosely coupled system in a decentralized organization?

• A system where all parts are tightly connected

• A system with rigid connections

• A system where parts are interdependently connected

• A system with no connections between parts

What is a disadvantage of decentralized organizations?

• Coordination is not automatic

• Inability to adapt to market changes

• Lack of flexibility

• Poor product quality

Which organizational structure is more adaptable to changes in the marketplace?

• Rigid

• Decentralized

• Centralized

• Hierarchical