Decision making

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    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

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