Decentralization of Organizations

TodayÆs organizations are more decentralizedùhaving multiple small, autonomous groups instead of one large group with a central locus of controlùthan organizations of the past, and this has raised a controversy between those who believe that organizations should be centralized and those who believe they should be decentralized. On the centralization side, proponents point to the benefits of standardization and efficiency, while on the decentralization side, proponents tout flexibility and effectiveness. Every organization values all four of those benefits, so the argument over which type of organization is best continues. By analyzing the changes in todayÆs global marke

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rience he needs to draft some concepts that might provide a solutionùJill from Accounting, Bob from Information Systems, and Carol from the product design group. Working intensively with them on a self-managed team develops a concept for repurposing the widget. With only a few inexpensive adjustments, the widget can be manufactured to perform a completely different function. Even better, it will be virtually alone in its new market, virtually guaranteeing that profits will now go up instead of down. In the time it takes the centralized organization to change the job descriptions, JoeÆs organization is already producing its new product. Proponents of the old centralized organization can see the advantages of decentralization after the success of JoeÆs organization in meeting its crisis, but they still harbor serious misgivings about the concept. They find it hard to give up the usual way of doing businessùplanning for the future, and then working the plan, with every employee sticking to a defined job description. They see a decentralized organization as chaotic, and they find it hard to believe that such an organizationùespecially one of any sizeùcould possibly survive by operating that way. Yet, some of todayÆs most succes
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Approximate Word count = 2462
Approximate Pages = 10 (250 words per page)