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Exercise #3 Centralized vs. Decentralized
QUALITY, STRATEGY AND VALUE CREATION (QUAL8000)
Conestoga College
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Student Name:
Homik Patel (8684662)
Assignment:
Exercise #3 – Centralized vs. Decentralized
Course Name:
Quality Strategy and Value Creation
Date Assigned:
23 rd March,
Date Due:
27
th March,
Rules:
1) This assignment will be completed individually
2) You will use Word for this exercise
3) Your work must be your own
4) Each deliverable should be clear and simple to read
Scenario 1 :
Major reasons behind the Decentralization of the successful centralized large organization:
In centralized organization, only top level management has the decision-making power in the whole organization and sometimes, the power decreases towards lower level management. The process of decentralization means each level of management has the power of taking decisions which directly increase the productivity of an any organization. In the decentralized management, all the stakeholder have equal authority to take decision, sometimes any lower level manager or supervisor can take any important decision. The decentralization in an organization distributes the workload equally amongst each level of management and it results into increase in the efficiency of the organization. As each stakeholder has an equal opportunity to take decision, sometimes they came up with several unique ideas which directly benefits to the company, however it also help to grow individually. This method also helps to maintain the uniformity between the decision taken by different level of management in an organization. As each employee has an equal power to take decision, they become more focused towards their work , which eventually increases the productivity.
Barriers of decentralization of an organization:
Though the decentralization of an organization has various benefits, however it also has some drawbacks. It is a fact that not every person has equal decision-making capability and because of that sometimes employees take wrong decision due to lack of knowledge, which become the main reason behind the failure of any project or the whole organization. As decision-making capability, each person has different point of view of any situation or everyone think in different way, hence there might be situations where some employee will not agree with the decision taken by any other employee or manager, which creates the conflicts between the employees. Apart from that, sometimes it becomes difficult to reach the conclusion when everyone come up with different ideas.
In my opinion, the application of centralization method is lot more easier than the application of decentralization. Because this method transfers all the powers to the senior management, who have more knowledge and experience in the management industry. Hence, they can take any decisions very effectively which are beneficial for the company and also it releases other managers or employees from their extra responsibility. After implementation of the centralized method, each employee just need to follow the instructions given by their superiors.
If I am starting my career in the industry, I would to prefer to start in a company which have decentralization system because it has more opportunity to grow individually. As this system has involvement of each employee and all the managers, if I do not take any decisions, however I can still learn from my seniors, by observing the way how they see the situation or any problem and how they react to it. Also, I can be more focused towards my work as I know that my decision could affect the project. Also, I can grow my management and leadership skills by sharing my ideas with upper management, as this system allows two-way communication.
References:
eConestoga slides
corporatefinanceinstitute/resources/knowledge/stra tegy/centralization/
managementmania/en/centralization
Exercise #3 Centralized vs. Decentralized
Course: QUALITY, STRATEGY AND VALUE CREATION (QUAL8000)
University: Conestoga College
