As we all know there are three major levels of organization the top, middle, and lower management. Each of these level have functions, roles, and responsibilities to be performed that contributes to the achievement of the objectives of any organization. When each of this level perform according to its mandate through its duties and responsibilities the operation of an organization becomes stable and aligned to the overall performance of the organization. There are a lot of strategies that is out there that make an operation of a large organization more effective and efficient. Organization always wanted to improve its processes and operation to adapt on the changing business environment or to fix some issues that concern the overall processes of the organization that will improve the performance and productivity of the organization.
Decision making is very important to organization. Decisions are done in a day to day basis but there are decisions that have major impacts to the operation and to the future of organization which needed to be studied and supported with data. There are two flows of decision making in an organization it is centralization and decentralization though this concepts are related in the delegation principles in the area of management specifically in the organizing function of an organization. In centralization, decisions are only in few key people of an organization that drives the organization to where it should be in the present and in the future. Usually, the top level is the one making the most decisions in a centralize organization. The top and middle level managers have absolute authority while the lower level managers are dependent on the decisions of the top and middle level management, sometimes it slows the processes of the organization in this kind of set up. Decentralization What is decentralization? it is process of giving authority to all levels of management including the lower level management except those which are necessary function of the top level management. In other words decentralization is delegation of authorities of the top management so that it can free up some unnecessary tasks which can be done by other levels of management and focus on its important functions. I am not a fan of delegation or delegating perhaps this is not the right term to be used because each level has its own functions, roles, and responsibilities to be performed but because of politics and control the top management must acquire certain key controls in key areas of the organization. However, in decentralization the other levels are given the authority to perform what is necessary when it comes to there roles and responsibilities. In decentralization operations at the middle and lower level is full controlled by the responsible departments. A shift from centralization and decentralization is not an easy task it will require a lot of work in the middle and lower level. How Do Organization Decentralize? Organization gives its authority to the people and department who knows exactly what is going on so that they can have an accurate and relevant decisions in there operations. Checks and controls of the top level are done and decided by the responsible department. Organizations knows best how to decentralize its structure because in this set up the structure of an organization changes according to the degree of decentralization that will be implemented. Key areas, processes, systems etc. should be identified so that this processes of decentralization will be effective and efficient. Key Takeaway Shifting from centralize to decentralize structure is not easy because there are lot of things to be changed in this kind of set up but when organizations are ready for this change and set up it will be easier for them to transform their organization to a decentralize structure. When organization knows that it is best to decentralize than to centralize they will be able to transition much faster and easier. Decentralization is done to ease and simplify some processes that hinders the effective and efficient flow of operation and processes of the organization which can affect its performance and the delivery of services to its client. Photo is not mine, credit to the owner if you like what you have read like us on Facebook or subscribe in this website. ©2020 JAR RAMOS ALL RIGHTS RESERVED
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