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Factors affecting the degree of centralization and decentralization are:
Importance of the decision:- How would be decision made affect the culture and image of the organization.
Size of the organization:-a larger organization with several duties and function would highly need a much decentralized structure on its divisions.
Willingness of top people to delegate power:- leadership style at the top contribute so much to any kind of organization structure. Democratic leadership is much more willing to discuss and delegate some duties to others.
Willingness of the subordinates to accept responsibility:- there should be interest from the subordinates to take responsibility and assume authority to enable delegation of duties to take place.
Availability of management talents:- the subordinates should have enough managerial know-how and skills to be able to make just and proper decisions that is in the interest of the organization. This would mean training them to be in a position to carry out decision making efficiently.
Rate of growth:- organization which are static would remain for long time centralized as there are no more duties and programmes to be decentralized as opposed to continually growing organization which could have a branch in a different area, be it geographical or operational that will need line managers.
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