Indeed, simulations and creative activities help foster a supportive learning environment where students of all learning styles can learn. One of the basics of business education is learning the difference between centralized and decentralized organizations. In centralized organizations, most decision making is done by top management and orders are passed down through the ranks.
Decentralized organizations distribute decision-making authority throughout the company.
Organizations may discover that both approaches can be useful depending on their situation. In times of financial crisis, an organization may require a high degree of centralization so that top management can work through the crisis. Decentralization can help an organization be highly flexible when in conditions of high competition or fast-changing market conditions. Try the following simulation after teaching students the basic structure of centralized and decentralized organizations. Divide students into two groups.