- 10 Marks
BMIS – April 2022 – L1 – Q1a – Business and organisational structure
Explain five benefits that a company would derive from adopting a decentralized structure.
Question
Normu Ltd develops accounting software for small and medium-sized firms. The company, for the past five years of its operations, has operated with a simple form structure with most decisions being taken by the founder. Currently, the company’s market base, as well as its product range, has significantly increased. The company now develops and sells accounting software to large organizations and businesses, resulting in a modification of its existing simple form structure to a decentralized structure where decision-making powers are assigned to branch managers.
Required:
Explain FIVE (5) benefits the company would derive from this new structure.
Find Related Questions by Tags, levels, etc.
- Tags: Communication, Decentralization, Decision Making, Motivation, Strategic Decisions
- Level: Level 1
- Topic: Business and Organisational Structure
- Series: APR 2022
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