Do you advocate Decentralization in an organization?

Do you advocate Decentralization in an organization?


The manager has built a great team, and it seems all fine until there arises a need of more team members. The manager has to think around about messing around the present structure with a over-specialized team. It is one of those challenges that every manager has to face once in his life time. It is about finding out the solution about macro level concerns that can even complex the organizational structure. So, do you advocate Decentralization in an organization?



• When it comes to a larger organization that has offices at various locations, centralization cannot be followed. Decentralization is must for efficient performance.

• In an organization, there is definitely the need of experts in a team who can look after the specific tasks of an organization.

• The process is about involving everyone in the planning, and when inputs come from various people, the manager has more options to choose from.

• Decentralization is the other name of delegation of authority that enhances employees’ morale and encourages them to deliver better.

• It is essential that functions should be diversified in an organization. Also, on economic front it adds more employment opportunities.

No

• Decentralization can create a mismatch of work allocation. Some employees have to work more while some have to work less creating problems in organization.

• When a particular function is assigned to someone who alone is responsible for the work, it can lead to problems when he leaves the job.

• The process involves higher costs and can lead to the unwise practices of duplication of functions.

• It results in a complex organizational structure where it is tough to maintain uniformity leading the inefficiency in work.

• The decentralization results in the ego clashes between the employees that is not favorable for any organization.

Conclusion

Decentralization in some cases is not an option but an obligation that is required to be implemented in any case. If it ever happens, it becomes essential to select a team with a balanced set of skills. Manager should realize it that success is a result of balanced profile of people’s capabilities. So, it is essential to understand what works best for the team and the organization. In any case, don’t mess it up!
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    Discussion

  • RE: Do you advocate Decentralization in an organization? -Deepa Kaushik (07/11/14)
  • Decentralization is a good option to choose in a large organization. The big organizational structure makes it impossible to be handled effectively from a single resource. Though there needs to be a single large unit to overlook the various fields and work allocation, still the decentralization will help in the effective work delivery.

    When it comes to decentralization, some issues get emerged abruptly like the infrastructural requirement, the cost input and cost effectiveness, requirement for manpower etc.; still when we analyse the quality of the work delivered, it is far more superior in comparison to the centralised work efficiency. Also, for a huge organization having various branches spread across the country or worldwide, it becomes almost impossible for a single authority to supervise each and every department. If the same management is divided and the authority is further distributed to the individual branches with a single governing unit taking care of maintaining a uniform platform across all its branches, the output gets better increasing the revenue multifold.

    Thus, analysing the status as a whole, the decentralisation is a befitting measure for huge organizations, though the same could not be very much effective for the smaller ones, as it will create more loopholes for the work inefficiency.