Decentralization in an Organization.
Each organization has to choose the management and decision-making approach that they have to use in the company. Technological changes and customer, as well as workforce expectations, mean that decision-making is more crucial for the company today. However, the dilemma is whether the management, mid-level employees, or low-level employees will be responsible for making decisions.
Generally, organizations have to choose the kind of management approach they have to use in their organization: decentralized and centralized management approach; some companies can use both approaches.
Decentralization would work at that organization. The choice of management approach that a company can adopt depends on the market and the abilities of both leaders and employees. Decentralization is the practice where daily functions and decision-making approaches are delegated by top management to middle and low-level managers, and in some cases, the delegation is extended even to team members (Wang et al., 2019). Companies following a decentralized organizational structure allow the top management to focus primarily on prospects for growth as well as daily operations.
Moreover, decentralized approaches have multiple checks and controls and expand the scope of decision-making (Hassan & De Filippi, 2021). The main idea of the decentralized decision-making approach is that it gives authority and responsibility to those who understand best since they are close to stakeholders and have the right information available to them. For instance, an employee who deals with a specific issue day will be in a better position to spot an issue faster than the upper management can. Instead of directing the clients to upper management for assistance, they can use their knowledge and experience to solve the problem directly.
Hassan, S., & De Filippi, P. (2021). Decentralized autonomous organization. Internet Policy Review, 10(2), 1-10.
Wang, S., Ding, W., Li, J., Yuan, Y., Ouyang, L., & Wang, F. Y. (2019). Decentralized autonomous organizations: Concept, model, and applications. IEEE Transactions on Computational Social Systems, 6(5), 870-878.
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Think of a company you worked for in the past, currently work for, or hope to work for in the future, and discuss if you think decentralization would work at that organization. Why or why not? Be sure to include specifically related examples of why this would or would not work in that organization.
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