The chief advantages of a centralized organizational structure include having a small number of top-level managers micromanage the business by
(a) requiring lower-level subordinates to obtain top management approval before taking action on their own and personally making most decisions themselves.
(b) increased likelihood of arriving at the "best" decision from the standpoint of the company as a whole.
(c) making it easy to know who is accountable when things do not go well and reducing the potential for conflicting decisions and actions among lower-level managers who may have differing perspectives and ideas about how to tackle certain tasks or resolve particular issues.
(d) speedy decision-makingâbecause the manager-in-charge of an organizational unit has the authority to decide what to do without consulting others (there is no requirement to spend time gathering and processing information from others).
(e) faster implementation of new ideas for doing things better and increased ability to reduce the layers of managerial bureaucracy.