Question

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!

Answer 1

Decentralized Organization

Decentralized organization is an organizational type where the decision making and daily operations are delegated to the middle and bottom level by the top leve.It is a type of organization in which most decisions are made by the middle level or bottom level managers. The decision making is not solely in the hands of some people but by mutiple people. It helps the top management to focus more on main decisions. It also means the dissemination of powers, functions, roles and responsibilities.

Following example explains how decentralization works in an organization. Hotels, Supermarkets,etc.. are mainly implementing the decentralized process. In this type of organization, it is impossible to focus on more than 200 or more branches. So the major decisions are taken by local zonal managers. There is no much more role for top managers in taking daily decisions. They are giving more focus for main decisions.

The importance of decentralization relies on various areas and they are: It helps to make prompt and efficient decisions quickly and easily without spending more time. It also helps to develop executive skills. Because, it allows middle and bottom level to take responsibilities and decisions. The process of decentralization promotes growth of each department by helping them to take decisions independently. It also helps to ensures higher control over the performance of each department. It helps the top management to reduce their risk and burden.