Factors That Influence the Amount of Centralization and Decentralization More Centralization More Decentralization Environment is stable Environment is complex,uncertain. Lower-level managers are not as capable or Lower-level managers are capable and experience at making decisions as upper- experienced at making decisions. level managers. Lower-level managers do not want to have a Lower-level managers want a voice in say in decisions. decisions. Decisions are significant. Decisions are relatively minor. ● Organization is facing a crisisor the risk of Corporate culture is open to allowing company failure. managers to have a say in what happens. ·Company is large. Company is graphically dispersed. Effective implementation of company Effective implementation of company strategies depends on managersretaining say strategies depends on managers having over what happens. involvement and flexibility to make decisions. ©Prentice Hall,.2002 10-17 Factors That Influence the Amount of Centralization and Decentralization © Prentice Hall, 2002 10-17