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Centralization vs decentralization example
With examples, explain the difference between centralized and decentralized organization
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Decentralization of Human Resource Management
What is decentralization?
Decentralization is a broad term with many applications, especially in government and business. First used in 1846, it is defined as “the dispersion or distribution of functions and powers; specifically: the delegation of power from a central authority to regional and local authorities” (“Decentralization”). Decentralization is often hard to understand without discussing centralization. Centralization is defined as all decision making power concentrated in the hands of a primary authority. So, a centralized government is a single individual or small political group making all the decisions, such as in a dictatorship. But a decentralized government spreads the decision making power over multiple territorial and local administrations, such as in a republic. In business, decentralization involves “the transfer of authorities, functions, rights, duties, powers and accountability of the top level management to the middle
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The sacrifices are often consistency, expertise, cost, and efficiency. A decentralized human resource approach is not as efficient as a centralized department, just as individual production is not as efficient as mass production. With a centralized human resource department, personnel specialists specialize in one area of human resources. Therefore, they make less mistakes and are more cost effective. Whereas, when personnel generalists are functioning independently in a decentralized approach, policies and procedures may not be as well understood or followed. So, if every personnel generalist is understanding or applying the rules differently without supervision, there are often inconsistencies in the way human resource functions are executed. This can sometimes lead to serious repercussions, even lawsuits, especially in the realm of hiring and firing (for example, “nepotism and favouritism”) (Kolehmainen, R., and L.
Mathis, R. L., & Jackson, J. H. (2010). Human resource management (13th ed.). Mason, OH: Thomas/South-western
Ulrich, D., Younger, J., and Brockbank, W. 2008. “The twenty-first century HR organization.” Human Resource Management, 47, pp.829-850.
PRINCIPLES Federalism: "A political system in which ultimate authority is shared between a central government and state or regional governments. "1 The first and foremost principality addresses the power of the federal and state governments. The framers of the Constitution never meant for the federal government to grow to today's tremendous size.
Retrieved from http://go.galegroup.com.library3.webster.edu/ps/i.do?id=GALE%7CCX1700400026&v=2.1&u=edenweb_main&it=r&p=GVRL&sw=w. Dessler, G. (2011). The 'Standard'. Human resource management. Upper Saddle River, NJ: Prentice Hall.
Coca-Cola manages its human resource department through a decentralized human resource system, which means that not only management can have an input in decision-making but employees can as well. Coca Cola’s decentralized system ties together shared visions of the employees and management, but Coca-Cola also realizes the complexities of managing operations in different locations that the company has established an International Advisory Council (IAC) to help senior managers make effective decisions for the company.
Nowadays, Good managers are not only effective in their use of economic and technical resources, but when they manage people they remember that these particular resources are special, and are ultimately the most important assets. On this occasion, this report is written to explain the reason why Personnel Management has changed to Human Resource Management and how the functions and roles of Human Resource Department differ from Personnel Department.
Human resource management and the organizations in which it takes place are facing challenges from a changing environment. Hiring the proper people with the appropriate skills is an essential part of maintaining the workplace. Economic issues which include downsizing, organizational culture, productivity, ethics, demographics, and diversity plays a significant role when redesigning a company 's Human Resource Department. Success in the field of Human Resource requires an update of knowledge continually. Training, certifications, hands-on experience, and tactic knowledge helps to perform a difficult redesigning task with speed and sensitivity. Human Resource actions are comprised of but not limited to equal employment, staffing, compensation, benefits, labor relations, and safety. Ethical issues are
Federalism, by definition, is the division of government authority between at least two levels of government. In the United States, authority is divided between the state and national government. “Advocates of a strong federal system believe that the state and local governments do not have the sophistication to deal with the major problems facing the country” (Encarta.com).
Fisher, C., Schoefeldt, L., & Shaw, J. (1996). Human resource management. (3rd Edition). Princeton, NJ: Houghton Mifflin Company.
Schuler, R. S. & Jackson S. E. (1994) ‘Convergence or divergence: Human resource practices and policies for competitive advantage worldwide,’ in International Journal of Human Resource Management, Vol. 5, Iss. 2, pp. 267-99.
Obtaining the position of human resource director for an organization that has not had a structured and directive human resources department has various challenges. It is likely that as XYZ Company has grown from a small software development firm they have neglected one of their most important aspects of business that contributes to the success of the organization: their employment practices. Employees and employment practices have evolved over the years and the personnel departments that we once relied on mainly for the hiring and firing processes have evolved to meet the expectations and demands of State and Federal laws and regulations, the work force, and organizational strategies that the company has adopted in order to remain competitive and successful in the marketplace. The processes and procedures that now need to be observed by the “personnel department” requires greater knowledge, skills, and abilities regarding laws and regulations, current and potential employee needs and demands, and has paved the way for the transformation of the human resources professional to become an integral member of the management team in an organization.
...on and the office is subdivided based on three functions within the region. This form of organization responsive to regional needs but departures from national objectives and a complex form of organization. Second form of decentralization is decentralization on purpose or likely known as deconcentration, senior manager responsible for each function remaining in head office. Each branch is subdivided into region and specialize in providing only one function, it is to ensure uniformity of administration. This form is simpler than previous one, but the form lacks of coordination of the program and insensitive to regional needs.
Federalism is a legal concept that is centered around the concept that law is best handled as a two layered responsibility. Federalism is also built on a belief that sharing power with the local government is key to a successful governance. According to the text book, “the United States was the first nation to adopt federalism as its governing framework” (pg83). The following are a few examples of some advantages, as well as disadvantages of Federalism.
In dynamic, global competitive markets, successful organizations are likely to be staffed with managers capable of adapting to constantly evolving roles, and with the capacity to achieve and sustain optimal levels of performance. The global market place has currently impacted the practice of human resources management in the United States and will continue in the next ten years.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)