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2.What are advantages and disadvantages of having many rules (hierarchical control) vs few rules (decentralised control) for

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Answer #1

Hierarchical Control

Advantages

  • Good for large organizations which rely on standard processes and predictable operations
  • Efficient top down cascading of priorities and direction
  • Clear demarcation of roles, responsibilities and accountability
  • Ease of communication

Disadvantages

  • Lack of engagement and participation at lower levels
  • Lack of feedback and communication up the channel
  • Rigid and formal organizational Culture

Decentralized Control

Advantages

  • Participative and engaging for all levels of the organization
  • Faster decision making at all levels
  • Lower span of control reduces complexity of decision making

Disadvantages

  • Lack of accountability for decisions
  • Possibility of siloed teams
  • Coordination of organization wide activities is complex
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