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Tactical management
(carried out by middle management) is concerned with establishing means 
to the corporate ends, mobilising resources and innovating (finding new ways to achieve business 
goals). Decisions made at this level would have medium-term implications. 
(c) 
Operational management
(carried out by supervisors and operatives) is concerned with routine 
activities to carry out tactical plans. Decisions at this level would deal with short-term matters. 
 EXAM FOCUS POINT 
One of the basic organisational structure concepts is that of the separation between direction setting for 
the business, and day-to-day management processes. This distinction is specified in the Study Guide.
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CHAPTER 5
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BUSINESS ORGANISATION, STRUCTURE AND STRATEGY 
 
141 
 
4
Centralisation and decentralisation 
4.1 What is centralisation? 
A 
centralised
organisation is one in which authority is concentrated in one place. 
We can look at centralisation in two ways. 
(a)
 Geography
. Some functions may be centralised rather than 'scattered' in different offices, 
departments or locations. 
So, for example, secretarial support, IT support and information storage (filing) may be 
centralised in specialist departments (whose services are shared by other functions) rather than 
carried out by staff/equipment duplicated in each departmental office. 
(b) 
Authority
. Centralisation also refers to the extent to which people have to refer decisions upwards 
to their superiors.
 
Decentralisation therefore implies increased delegation, empowerment and 
autonomy at lower levels of the organisation. 
4.2 Advantages and disadvantages of centralisation