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Centralization and decentralization
Pros and cons of decentralization
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Assignment: 1
Centralized vs Decentralized
Name: Lovepreet Singh
Student ID: 8076028
EXECUTIVE SUMMARY
I am a top manager in a large organization. My job is control all the processes in the organization. In this report, I am going to explain two different scenarios. In first scenario I am going to convert my organization from centralize to decentralize. However, in second scenario my company is decentralized and I am planning to convert into centralize.
Scenario: 1
Major Reasons to Decentralize:
1. Reduce Workload: It helps to reduce the burden of daily business operations of the business owner. In decentralization owner allow the other worker to perform such tasks like manage order and supply and hiring new
Empowering Employees: Decentralization gives more autonomy to employees to make their own decisions. It gives them the feel of importance and makes them since as if they have more input in the path of the organization. It additionally allows employees to make a better decision and use their knowledge and experience they have gained and implement some of their ideas.
3. Effective Control: It leads to effective control and managers enjoy full authority to make changes in work and workplace. They can also change production schedule and production rate according to need.
4. Satisfaction of Human Needs: Decentralization is an important tool to fulfill the human need for power, status, independence, and prestige. This satisfaction helps to construct a frame of satisfied managers, who feel their responsibility towards the company and work.
5. Ease of Expansion: In a growing corporation, decentralization can facilitate the method of enlargement. To explicate if I open a brand new business inside the new geographic region, decentralization allows the brand new unit to manipulate as an independent entity, it works very easily consistent with wishes of the neighborhood area and sells products that appeal to the local
Top management decides the degree of centralization by picking and choosing who will be focus more on who they want to push to get the job done. If they focus more on the lower crew members, while centralizing will have them focused on the upper brass of the corporate company.
One positive that came out of federalism is an increase access to government. It became much easier to get your agenda across, which allowed many special interest group to gain a footing in the political system and encouraged involvement. As the access to government increased so did citizens roll in government, allowing the political process to reach far more people than before.
Federalism was majorly influenced by Alexander Hamilton, who was the dominant author of the Federalist Papers. Hamilton did not want to repeat the mistake that Great Britain made and believed that spreading the power to multiple sources of government, along with checks and balances would abolish tyranny. Furthermore, it would aid the people to be heard and their concerns to be resolved faster and with attention from their government. Federalism is when a nation has two sources of government instead of one, the two levels are national and state/local. Similar to many American qualities, having a federal government has its advantages and disadvantages. Three positive factors of federalism are that there is a more orderly system to dispute and
... economic system, one that needs no interference, and needs to type of larger organization involvement.
Federalism definitely improves our American Democracy. It allows Local and State governments to be more important for its citizens and be more responsive to them. Federalism, at least in the United States, is the concept of both national and state governments having shared powers and authority of over matters - such as policies - that the other may not have. The state government has some autonomy, or authority, to pass those policies without needing the national government and vice versa. One simple example on how Federalism works is the national drinking age policy. The national government wanted to establish a minimum age for one to buy or consume alcohol. Since Congress could not simply pass a law making it so, they withheld federal highway
Another characteristic of bureaucratic organization that compromises efficiency is the division of specialized labor. When all the tasks are specialized and everyone is trained to do one specific thing, there is no allowance for free riding. If one person, or many people for that matter, decides to slack off (which is simply human nature), what then happens?
The Company observes the practice of decentralization where the responsibility and authority in all decision-making for the divisions’ operations lie in its respective division managers, except those relating to overall company policy.
In Enabling Creative Chaos: The Organization Behind the Burning Man Event by Katherine K. Chen (2009), the author offers an organizational model combining bureaucracy procedures with collectivist policies to readers. Chen analyzes the procedures and policies of the organizers behind the “Burning Man” festival’s creative chaos. Chen’s purpose in her book is to help society “reimagine organizations and their place in everyday life,” however, it remains unclear how the Burning Man organizational model relates to everyday lives in present society (Chen 22). Unlike Jason Corburn’s “street science” model used to study the potential causes of the asthma epidemic in Brooklyn, as explained in his book Street Science: Community Knowledge and Environmental Health Justice (2005), Chen’s model does not reflect on how the individual organizers and participants of the event have used the Burning Man’s organizational model to change other bureaucracies within which they are involved. Comparatively, Coburn’s framework for understanding “street science” – decision-making that draws on community knowledge and makes contributions to environmental justice – is the better model upon which society should view bureaucracy (Corburn 111-144.).
Empowerment is another feature of post bureaucracy. It represents organizations awarding power and authority to those lower in the organizational hierarchy (Knights & Willmott, 2007). To some extent empowerment could be beneficial to a organization because empowerment would allow the workers to work...
Advantage of hieratical organisation Employees know their objectives clear in their job task and carry out efficiently. Beside that, every staff specialised their job. For example: engine designers responsible for designer and develop engine. HR staff responsible recruits and select people. Divide of labour and specialization can be applied so that it increase the working efficient and reduce operation cost.
Given that organization need control so that they can effectively operate in today’s competitive market, hence they need to determine if their goals have been met, and weather correct actions have been taken. Hence the control process is beneficial in terms of providing and guiding the organizations with adequate regulation of the company’s activities so that they can efficiently focus on the performance of the company. As a result the scope of the process control in an organization is to help the organization in adopting the changes, as the control system will help in anticipating while monitoring and responding to the changing environmental conditions.
The Unitary theory is based on the assumption that the organisation is, or should be, an integrated group of people with a single authority/loyalty structure with a set of common values, interests and objectives shared by all members of the organisation. This is expressed by Gennard and Judge (1997), who state organisations are assumed to be ‘harmonious and integrated, all employees sharing the organizational goals and working as members of one team’. Through the unitary approach it is assumed that both management and employees can achieve and satisfy their common goals (high levels of productivity, profitability, pay and job security). In the Unitarist theory management see their function as controlling and directing the workforce and see the organisation as a unitary system which has one source of authority which is itself and one source of loyalty which is the organisation. Under the unitary theory the organisation system is in basic harmony and any opposition to or conflict with management is rega...
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
Benefits of decentralized system reduces overall demand by enhancing energy, Ingresses number of resources, reduces financial risks and creates job opportunities. It provides a clean and reliable energy and thus to increase the economic growth.