Question

Acc105

chapter 14

-What is a tool an organization can use to mitigate the disadvantges of a decentralized organization?

Answer 1

Decentralised organisation empowers middle and junior level of staff and creates decision making authority among the individuals. This creates a platform for these individuals to grow slowly so that they can step into bigger shoes tomorrow.

Decentralised organisation has its own demerits e.g. lose of control over day to day activities, lack of unity of purpose to achieve larger goal.

Using a balanced approach between centralised and decentralised structures is the key to successfully managing the decentalised structure.

The organisation may create a limit (monetary may be) around the authority, follow chain of command in bigger decision making, weekly/monthly status update, reinforcing message of achieving united purpose, tighter control around decisions and review of decisions taken on random basis may be some of the items which can help overcome disadvantage of decentralised organisation.