As most of the decisions are centralized with upper-level executives, it makes the process speedy, and execution becomes faster because not many people are involved in the decision making, which reduces the time of questioning each person.
The image above depicts how fast the decision converts into success when the organization follows the centralized structural approach for making or executing important decisions. It becomes possible because fewer people are involved in a centralized organization, which gives results quickly. It also makes the decision more efficient than in a decentralized organization. The top management makes the decisions and then gives directives to the lower level for quick follow-up. This speedy decision-making process is one of the traits of a centralized organization.
Vision refers to an ability to see beyond a particular thing. A centralized organization emphasizes focused vision because it is involved in taking important decisions.
It is one of the advantages of a centralized organization that it supports a focused vision. The upper-level management deals with all the problems and decisions. They alone get involved in such things so that other staff would not make it worse, they individually focus on making worthy policies, and then they pass the information on to lower levels. While working on a vision, they may take advice from the lower level, which helps in serving the common goals. For making the vision work, upper management needs to communicate with its lower and middle team. This helps an organization find its common vision. And also, it prevents the inconsistency due to miscommunication in an organization.
Roles are well-defined
In a centralized organization, the roles from upper to lower levels are well-defined. In such organizations, where the centralized leadership prevails, often the roles of managers and the other employees of the organization are well-stated by the executives already.
Having defined roles in a centralized organization makes it an advantage over other organizations where a decentralized approach is followed. It has been seen that when employees and other staff know their responsibilities and duties, it makes them more productive and more confident towards their sphere of responsibility. The morale of employees would boost as they already been aware of their duties, which would not create an environment of resentment among the members of an organization.
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