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Assigmnent #1- 8137887
QUALITY, STRATEGY AND VALUE CREATION (QUAL8000)
Conestoga College
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Exercise #1 – Centralized vs. Decentralized Quality Strategy and Value Creation DATE ASSIGNED- 22 MAY 2018 DUE DATE- 25 MAY 2018 AKSHAY DESAI 8137887 Scenario #1 Assuming a centralized structure in an organization, a centralized structure is basically a rigid system which flows a particular path to top management for decision-making. All the decision and planning are done through the same process and by same people. Now, due to certain reasons, the organization is planning to make a decentralized structure for decision-making. These are the following reasons for a decentralized structure: 1. A centralized structure is not favorable for a growing organization as top management might not be aware of local conditions or environment for taking decisions. As a result, there are chances of incorrect decision which can be a hindrance to company’s growth. 2. Centralized structure hampers the development of employees as they are not involved in the decisionmaking. Employees’ moral also drops as they do not feel participative in decisions. Innovative ideas and feedback from employees are also wasted due to autocratic decision-making. 3. The centralized structure also causes overburden to top management. As the organization grows, departments also tend to grow and as a result, top management can lack efficiency in decision-making due to increase in the burden of additional departments. The above mention are the top reasons for establishing a decentralized structure. But, for an organization which is habitual to a centralized structure can face hurdles to a decentralized process. The hurdles can be following: 1. Training to the employees to make them capable for taking decisions on their own. 2. A decentralized structure might create confusion among the employees for taking the decision as it is free and open environment in a decentralized structure. 2. Top management might be unaware of rapid changes in regional conditions and thus, a decision might be affected. 3. It can cause overburdening to top management. (Dr. S. B. M. Marume, 2016) Opinion I personally believe the #2 scenario will be easier to implement because a decentralized structure is more wide and complex. It includes many decision-making authorities and there are no standard procedures for taking decision whereas, in a centralized structure all the decision is done through a standard process and it is easy to control it. Thus, centralized mainly needs to establish a path and a process through which organization will take the decisions. Choice If given a choice between a centralized and decentralized organization, I will choose a centralized organization in my starting career as in a centralized organization it will be easy to learn the decisionmaking process. Also, in the starting career, I do not possess much experience to take the decision and a wrong decision can reduce my confidence level. Later, in my career, I will like to work in a decentralized organization as I will be able to take the decisions on my own based on my experiences. I can also put my valuable feedback on organization’s growth and can feel an integral part of the organization. References Dr. S. B. M. Marume, R. R. (2016). Centralization and Decentralization. Quest Journals, 106-108.
Assigmnent #1- 8137887
Course: QUALITY, STRATEGY AND VALUE CREATION (QUAL8000)
University: Conestoga College
