- 6 Marks
CSEG – May 2016 – L2 – Q6a – Organisational mission and objectives
Explain three reasons why a company should maintain its current centralized administrative department, focusing on benefits of centralization.
Question
You are the Chief Operations Officer and a member of the board of directors of a reputable firm that has operations in all ten regions of Ghana. The board is currently deliberating on a strategy to decentralize the administrative function in order to promote flexibility in administration across all the operational areas of the company. You feel strongly that this move will be detrimental to the prospects of the company and has therefore spoken against it. The Chairman of the board has, therefore, asked you to submit a short memo to argue out your position.
Required: In a memo to the Chairman of the board, explain THREE reasons why you believe your company should maintain the current centralised administrative department. (6 marks)
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