One-way, top down communication
Centralised decision making
One way communication
Centralised decision making
Management seeks to convince employees of their decision
Two-way communication
Centralised decision making
Management seeks input from employees
Manager still makes the final decision
Two-way communication
Decentralised decision making
Employees and managers work as a team to make decisions
Two-way communication
Decentralised decision making
Managers provide employees with the responsibility to make their own decisions
Saves time as the manager doesn’t need to consult employees about their decisions
Suitable for high risk/pressure situations as communication is direct and doesn’t rely on employee input
Reduced employee moral, as input is not valued
Doesn’t make use of valuable employee insight
Saves time, as the manager has the final say
Employees are more likely to accept decisions if persuaded
Employees may have reduce moral as they feel their input is not valued
Does not make use of valuable employee insights
More informed decision making
Employees likely to feel more valued
Can be more time consuming
If employees are left out of the final decision, may feel their input has been ignored/is not valid
Time consuming
Not suitable for all environments, like high risk/pressure situations
Employees feel more valued due to the level of responsibility
Encourages teamwork between employees
Employees may lack skills and knowledge to make suitable decisions
Lack of guidance from management can negatively impact morale of staff
Providing clear/concise instructions
Setting clear objectives/expectations
Facilitate dialogue and receive feedback
Hiring the best staff
Purchasing inventory
Expanding operations (opening new stores)