ds of their work rather than according to an established set of rules. The boss is not directing the business, so he is not aware of everything that is going on throughout the organization. Yet, the decentralized organization is found to be more effective and more flexible than the centralized one; this is because it can respond more effectively to the demands of the environment.
In a centralized organization, changes and adjustments are difficult to make. If the widget manufacturer hears on the morning news that the market for widget has bottomed out due to the development of a new device that does the job better for less money, his emergency efforts to save the company are likely to fail. First of all, making changes in a centralized organization is cumbersome. The changes have to be approved by all of the upper management people with decision-making authority; the rules and guidelines have
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