Centralization in Film Production. According to the Motion Picture Association of America, the average cost of all production, overheads in the studio and financing of all costs up to the creation of the actual movie negatives (also termed as the negative value), was around $51 million in 1999 and went up by 6.5% in 2000 to around $55 million (MPAA). This signifies a big difference over independent films whose budget often is around $10 million to $ 20 million (Frumes 5). Over the last decade, the negative costs have spiraled out of control prompting film studios, under their designated unions, to undertake debates on the most economical ways to ensure that the movie production cost does not go extremely high (Lambe 98). Among the policies mentioned included centralized production, independent films production and prices regulation (Susman). The paper herein identified centralization as the most efficient and economical way of film production costs does no spiral out of control.
Centralization is an organizational method whereby decision making is reserved for the executive level and employees lower in the hierarchy do not possess the power to make decisions (Tinbergen 43). Moreover, lower level employees are subject to approval by the executive managers. This type of organization has advantages in that there is fast execution as time is not wasted debating the matter, the vision of the organization and focused, conflict is reduced, and control and accountability are easy to…
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