Decentralization empowers individual to make their own decisions that will benefit the organization, which results in a high level of employee satisfaction and boosts the productivity of an organization.
Decentralization perturbates the order of things and leads to chaos. The risk of having a bad employee is higher than in a strictly organised system. + efficiency will be reduce due to ingroup fighting
On prior projects, centralization has been the goal to rid silo-ed organizations. Decentralization employs individual ownership or accountability, however, depending on workplace culture, can create redundancy and inconsistency. As a result, incurring financial loss, unexpected impacts and/or operational inefficiency. Centralization, most times, is preferred to strengthen org governance, processes and communication at large. Centralization seems to be the best method to orient stakeholders to business standards (roles and responsibilities).
smart explanation on the factors of centralization and decentralization, key decisions, organisational hierarchy and approaches from business industry. Thank you
I thought franchise businesses are a perfect example for decentralized organization, since every single restaurant in a Fast Food franchise has it's own manager.
Having managers never mean they are empowered to take any decisions. Suppose, a manager thinks one specific item can be added to McD menu for a specific outlet to support local demand, is this possible for him/her to do that? They are bound to follow (centralized) the decisions already made somewhere very high in the hierarchy.
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Decentralization empowers individual to make their own decisions that will benefit the organization, which results in a high level of employee satisfaction and boosts the productivity of an organization.
Decentralization perturbates the order of things and leads to chaos. The risk of having a bad employee is higher than in a strictly organised system.
+ efficiency will be reduce due to ingroup fighting
thanks i feel confident about my upcoming test now.
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On prior projects, centralization has been the goal to rid silo-ed organizations. Decentralization employs individual ownership or accountability, however, depending on workplace culture, can create redundancy and inconsistency. As a result, incurring financial loss, unexpected impacts and/or operational inefficiency. Centralization, most times, is preferred to strengthen org governance, processes and communication at large. Centralization seems to be the best method to orient stakeholders to business standards (roles and responsibilities).
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Dr. Anish Kumar M S
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Centralisation and Decentralisation in Business Decision Making
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I thought franchise businesses are a perfect example for decentralized organization, since every single restaurant in a Fast Food franchise has it's own manager.
Those managers must follow code and conduct ordered from higher up in the layers...
Having managers never mean they are empowered to take any decisions. Suppose, a manager thinks one specific item can be added to McD menu for a specific outlet to support local demand, is this possible for him/her to do that? They are bound to follow (centralized) the decisions already made somewhere very high in the hierarchy.