Business – 7.1 Organisational structure – Centralisation and decentralisation | e-Consult

Centralisation concentrates authority at the top, which can speed up decisions when the senior team is small and well‑informed, because fewer people need to be consulted. However, it may reduce the quality of decisions because managers at headquarters often lack detailed knowledge of local operations, leading to choices that are less relevant to specific market conditions. Over‑reliance on senior managers can also create bottlenecks when many routine decisions require their approval.