Question

Regions and localities are faced with two mayor trends in opposite directions, namely internationalization and decentralization. Discuss how that is, also providing the advantages and disadvantages of each of them.

Answer 1

The term 'decentralization' is used to describe a wide variety of power transfer arrangements and accountability systems. Policies range from the transfer of limited powers to lower management levels within current health management structures and financing mechanisms to extensive sectoral reform efforts which reconfigure the provision of even the most basic services. In the first case, decentralization may later become the driving force for health sector reform; in the latter, it is driven by the wider sectoral reform efforts. The parameters for decentralization -- the speed, the pressures, and the scope of issues to consider -- vary considerably.

Advantages

• Since each department is responsible for its operational decision making, the top level management are free to focus on high degree tasks.
• There exists a stronger emphasis on critical business conditions.
• Decentralization ensures decision-making opportunities to middle level and lower level managers. These opportunities and experiences are crucial in the employee workforce skill building.

Disadvantages

• There could arise a huge communication gap between the different hierarchical levels of the organization.
• Many times, the department’s goals delineate from the organizational ultimate goals and objectives.
• The process of effective control, monitoring, and evaluation of departmental performance may be impossible.