Site Loader
Rock Street, San Francisco

Decision making is one of the most important aspects of the success of an organization. The organization has to adopt several strategies in order to G1 G2 G3 G4 realise its objectives and goals. It poses a big challenge to the organization on how to sustain its set objectives and how to improve its business processes. Thus, most organization resulted in adapting decentralised decision-making (Cosh, Fu, & Hughes, 2012). Decentralisation happens when top management delegates some of its responsibilities and decision making authority to middle and lower level managers within the organization, allowing top management to focus more on major decisions. However, several factors have to be considered in adapting the said strategy such as the organizational structure, nature of business and efficiency and competency of the employees. Decentralization has its advantages and disadvantages like any other strategies. G5 G6 G7 

Different decision strategy applies to the different G8 organization specifically it depends on the strategic plan of the organization. A strategic plan details the future goals of the organization and how to achieve its future goal. Large organization, such as multinational firms or global firms, adapt decentralization because of geographical locations and time distance to the home base. It is easier for the top management to manage the operational aspect of the business. Thus, G9 reducing their burden while performing various functions. When the top management allows the line managers to perform other tasks, which is usually operational and routine such as procurement of supplies or hiring new employees, they can focus more on most important items that need attention such as strategic planning.  A formally structured organization with a written plans G10 is likely to be more innovative (Cosh et al., 2012). G11 G12 

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

As the organization expands in size and growth, decision making tends to shift to decentralization. Top management bearing the weight of an increased workload tendG13 s to delegate responsibility to lower level managers. Lower level managers and their subordinates have the direct knowledge of the market trends or business operation under their control.  G14 In this strategy, it ensures better control and supervision as the line managers and their subordinates, as a team, will have the authority to make independent decisions based on the current trends that affect their areas of responsibility. As a result, they have a thorough knowledge of each and every activity under their control and one in a position to make corrective actions. It facilitates competition G15 G16 (Alonso, Dessein, & Matouschek, 2015) or facilitate modifications on the products to sell, services to offer, or whatever the current market dictates. Line managers can act quickly in a situation that needed immediate actions without having to wait for a chain of command. G17 If authority is not delegated because the top management lack faith in their employees, then subordinates will not have much opportunity to develop. Thus, top management or the organization must put effort on developing the leadership competency of the line managers. Holding a talented and ambitious people will be difficult if they lack the needed training. This will also ensure that the organization is being managed properly. The growth of the organization depends on talented employeesG18  and how this strategy affects their attitude and performance (Richardson, Vandenberg, Blum, & Roman, 2002).G19 G20 G21 G22 G23 

Another factor that affects decentralization is the cost and risk associated with the decision. Most managers and business owners are cautious in delegating authority or decisions to lower management if the decision to be made could have a big impact on the performance of the organization as a whole.G24 G25  Thus, a cautious effort is extended to make sure that the organization’s welfare is protected. G26 G27 G28 A poor planning result in poor decision making which can be manifested in complex tasksG29  (Lanaj, Hollenbeck, Ilgen, Barnes, & Harmon, 2013). Thus, top management must study and think strategically about how to carry on the plans. It should cover all aspects of the business process which include future endeavour.G30 G31 G32 G33 G34 G35 G36 G37 G38 G39 G40 G41 

Decentralisation can also be applied to the public sector. G42 In decentralisation, G43 G44 the national government makes the national policies while the local government units create special actions to the local issues. Authority is distributed from the national government down to the local government unit down to the small villages. It promotes flexibility and efficiency because local government units can respond quickly to unique and ever-changing needs of the locality. It also promotes innovations because they know better the G45 situations at the local level and they can find appropriate ways to address the current situations. Likewise, because the local officials are the main stakeholders in the ground, they have greater responsibility and accountability. Decentralisation also connotes democracy as people think that if the decision is made at the local level, they will be well informed. It is easy for them to monitor the performance of the government’s efficiency and how responsive they are to the need of the people. Decentralisation promotes good governance where accountability and transparency reside in the hands of the public officials (Smoke, 2015). This was evident in Brazil, Columbia and Mexico where authority and discretion were delegated to the local government and the resources they control.G46  It paved the way for the delivery of betterG47 G48  public services; budget spending, economic development, enhance public management, among others. The success attributes of higher civic engagement and good governance G49 (Faguet, 2014). The success and failures also of the community resides largely in the leadership of the local oG50 fficials. Thus, decentralization drives political reforms in the government. G51 G52 G53 G54 G55 G56 

In the educationG57  system, decentralization is widely used to facilitates reforms in the education management system. Just like in the public sector, decentralization in the education systems may improve transparency, administrative efficiency, finance management, among others. Often than not, the education systems reflect the political system of the country or the type of government. And to better equipped the school principals, in their new roles and responsibilities, they should be trained accordingly which include financial training.  Globalisation brought social transformation to any nation and has indeed influence greater reforms in the education system (Astiz, Wiseman, & Baker, 2002). G58 G59 

                Decentralisation has positive and negative effects on the organization. Different typesG60  of the organization the different strategic plan, or set objectives that they need to achieve in order to succeed. Thus, a thorough analysis of reforms or methods which is specifically fit to the organizatiG61 G62 G63 on must be applied to realise a more effective and sustainable decentralization (Smoke, 2015). This includes the long-term and short-term goals of the organization and how will this affect the future.G64 G65 G66 G67 G68 G69 G70 

Inserted: o

Inserted: The o

Inserted: of

Inserted: s

Deleted:in

Deleted:O

Deleted:a

Inserted:  the

Inserted:  the

Inserted: ly

Deleted:s

Deleted:s

Inserted: ed

Inserted: f

Inserted:  a

Inserted: ,

Inserted: i

Inserted: d

Deleted:ing

Deleted:n

Deleted:s

Deleted:s

Deleted:o

Inserted: n

Inserted: a

Inserted: is

Inserted: is

Inserted: a

Inserted: in

Inserted: u

Inserted:  the

Inserted: ut

Inserted: ab

Inserted: n

Deleted:t

Deleted:are

Deleted:are

Deleted:s

Deleted:to

Deleted:c

Deleted:n

Inserted: the

Inserted: ,

Inserted: s

Inserted: –

Inserted: ere

Inserted: r

Inserted: f

Inserted: f

Inserted: of the

Deleted:z

Deleted:s

Deleted:s

Deleted:as

Deleted:t

Deleted:t

Inserted: In

Deleted:At

Deleted:s

Inserted: n the

Inserted: e

Inserted: t

Inserted: the

Inserted: –

Inserted: –

Inserted: s

Deleted:t

Deleted:as

Deleted:d

Deleted:d

Post Author: admin

x

Hi!
I'm Eunice!

Would you like to get a custom essay? How about receiving a customized one?

Check it out