In: Accounting
Define decentralized organizations and tell how they work and how they measure the performance of those charged with management.
Attention: Please answer in the form of paragraph, no bullet points or numerical and I will rate. Thank you in advance!
Unlike a centralized organization where decisions are made by top-level management. In Decentralized organization, most of the decisions are held by the middle or lower-level management. Decentralized oraganization defines the structure where the decision making authority is not solely in the hands of a particular group of people. Employees can be empowered by having more freedom to make their own decisions, to make them a sense of being important in the organization. It will help them to utilize their own skills and talent towards the organization. Decentralized structures build a better chance for the organization which maintains self-sufficiency when mangers and high-level authority are absent during emergencies. As emergencies can be handled much better in a decentralized organization. A decentralized organization is able to make decisions more quickly than centralized as the chain of command needs not to be followed. As the top management is partially free from the daily activities, it creates opportunities for to top-level management to create healthy competition amongst the different division.