Question

How Do Managers Evaluate Performance in Decentralized Organizations?

Introduction

Explanation

Advantages

Disadvantages

Conclusion

                   

Answer 1

The firms and organisation decentralise the organization and make a segment for a better performance in the future

The decentralized organization will authorize the power of decision making in the hands of managers of the firm

For instance let's take a firm , there will be operational managers for operating activity, finance managers for finance activity and various other designated the separate work to run the organisation ,it can be extended to the level of size of the organisation .

If the size of the organisation increases the level of complexity and pressure over managers increases so the work split is required or decentralise is required among the managers

This changes can bring the firm a new level of work pattern to the managers and the decision making will be more appropriate and it helps to increase the performance of the organisation

Advantages

More competence

More than a single managers, the more number of managers will bring more decentralised organisation decision making progress

Fast decisions

High competency will lead to more quick decisions and it will be more appropriate due to specific managers with less pressure on them in the large firm.

Top level managers involved

Since the top level managers are less managed they will look in to every activity of the company possible, the responsibility for then will be mostly like that

Motivated by local level managers

Decentralized structure will provide a chance to grow in the organisation due to promotions and positive impact in the firm, the low level managers will be always motivated why the higher level of managers.

Disadvatages

Identical decisions

The decision may end up in similar manner due to the similar inner department in the head department , for example a purchase department may have a accountant records the purchases , in the same firm sales department there will be accountant records the sales these accountants have to make similar decisions

Conflict in decision making

More number of people may get up in more decision so number for decisions on a same decision making process is really hard and rational.

If the size of the firm increases the decentralized organisation should be implemented in a carefull manner the loss of control in top level can be controlled with a effective care in the organisation