Exercise Overview Diagnostic skills enable a manager to visualize the most appro

Question

Exercise Overview Diagnostic skills enable a manager to visualize the most appropriate response to a situation. Communication skills refer to the manager's abilities to both effectively convey ideas and information to others and effectively receive ideas and informati In this exerdise, you're asked to apply your diagnostic skil You are also asked about communication Ils to the question of centralization versus decentralization in an organization. issues as they relate to the decision to move between centralization and decentralization. Exercise Background Managers sometimes find it necessary to change an organization's degree of centralization or decentralization. Begin this exerise by reflecting on two very different scenarios in which this issue has arisen: Scenario A. You're the top beyond the scope of this exercise, however, you've decided to make the firm much more decentralized. manager in a large organization with a long, successful history of centralized operations. For valid reasons nario B. Assume the exact opposite decentralized, but have made the decision to centralize operations of the situation in Scenario A: You still occupy the top spot in your firm, which has long been

Explanation / Answer

1. Divisional or M form organization

U form is a centralized form

2.

b) both centralized and decentralized approach can be used for expansion; centralized for economies of scale

c) can be a reason for centralization

d) can be centralized to reduce costs

3. It may become more specialized because managers will have less responsibility

It will be more centralized, and, solutions will not be customized at a lower level; the products will be standardized

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