In a corporate setting, centralized and decentralized organizational systems are both common. Business owners can benefit from and avoid each arrangement.
A bureaucratic organization is known for having a pyramidal command structure. The administrative framework is well-organized and runs with a lot of formality.
The bureaucratic organization standardizes tasks.
The alternative that best fits the beliefs of a decentralized organizational structure is that decision-making authority should be placed in the hands of the people closest to and most familiar with the situation. A decentralized organization is one whose decision-making process is not only in the hands of top management, that is, in this type of decision making, employees of lower hierarchical levels also participate in crucial company decisions.
The organizational culture, work environment, organizational strategy, etc., are some aspects that influence this type of structure.
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