Decentralization Worksheet

Decentralization Worksheet

A large number of factors determine the extent to which a manager should decentralize, anything that increases a manager’s workload creates pressure for decentralization because only a finite level of work can be accomplished by a single person. As with many facets of management, there are advantages and disadvantages to decentralization.

1. The greater the diversity of products, the greater the decentralization.

• With the help of the decentralized system each and every department of the company can present their opinions. It is difficult to manage the supply chain and to hold the same standard of quality.

1. The larger the size of the organization, the more the decentralization.

• For a larger organization, there are more decisions to be made about different aspects of it. These aspects can be controlled in different places and it is difficult to coordinate them.

1. The more rapidly changing the organization’s environment, the more decentralization.

• Organizations in rapidly changing environments must be relatively decentralized so that decisions can be made quickly by those who are closest to the situation.  Organizations in relatively stable environments can be managed effectively through centralized decision making.

1. Developing adequate, timely controls is the essence of decentralizing.

• Yes, this is true. Delegating tasks and giving decision making to lower level employees/everyone allows for timely decisions to be made and for changes to be implemented in a timely manner.

1. Managers should delegate decisions that involve large amounts of time but minimal erosions of their power and control.

• In terms of decentralization this is true. Managers do not always necessarily have the time to make lengthy decisions, especially when a decision is needed in a timely manner. Distributing this task to a lower level employee allows for the employee to attend the necessary meetings and gather important information making this decision.

1. Decentralizing involves delegating authority, and therefore, the principles of delegation apply to decentralization. (list the principles of delegation before you start your discussion).

• The principles of delegation include: principle of result expected and oriented, principle of authority and responsibility, principle of absolute responsibility, and the principle of authority level. To a point this is true. When you decentralize, you are giving power to lower level employees. It may seem like authority and power but really deep down is not. Decentralization is most likely good for morale, empowering the employees to feel like their decisions and input really does matter. But authority still lies within the management.