Decentralization is one of the management control system technique that been implement in public sector. It is about devolution of higher authority to the lower management. This technique is also indicated a delegation of power and authority from the central government to the lower level management as a means to improve the management quality. It was also identified as a tool for more effective decision making. In details, decentralization concept is an attempt to give the organisation’s constituents which are managers and staff more control over what happens in the organisations. Normally, lower level management or local government are only having authority over their specific geographical area and do not have the powers to pass or enforce laws that affect a wider region.
This management control system is actually aimed at efficiency and problem solving where the organisations are given the power and responsibility to solve problems effectively in time. It includes demand for less control and uniformity that subsequently reduce the size and cost associated with maintaining a large central bureaucracy.
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Decentralization may not always be efficient, especially for standardized, routine, network-based services. It can result in the loss of economies of scale and control over scarce financial resources by the central government. Weak administrative or technical capacity at local levels may result in services being delivered less efficiently and effectively in some areas of the country. Administrative responsibilities may be transferred to local levels without adequate financial resources and make equitable distribution or provision of services more difficult. Decentralization can sometimes make coordination of national policies more complex and may allow functions to be captured by local elites. Also, distrust between public and private sectors may undermine cooperation at the local
Ahrens and Chapman go on to introduce their article by giving a background knowledge of modern perceptions of management control systems through their mention of related literature. Some key points discuss pertain to the author’s
Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).
Even when it happens slowly, there is a need for experimentation, testing, adjusting, and replicating successful experiments in other contexts. Decentralization should not be considered as a process, but a way of life and a state of mind based on the principles of freedom respect and participation. Above all it is trusting and recognizing that people are capable of managing their affairs the need to close the gaps and differences between all levels of governance through interaction and sharing decentralization as consisting of interlocking rings of responsibilities from the center to the community. Decentralization should not be imposed, but that people should be imposed, but that people should be exposed to it, thereby honoring their intelligence and respecting their independence.
When I first learnt about the world Bureaucracy and looked up the definition, it sounded clear cut to that the president is in charge or should be in charge of his constituent. Looking at the current polls, the president right now is not in good terms with the congress let alone the whole/federal bureaucracy. When it comes to my thoughts towards the presidents control over the bureaucracy, I don’t not believe have control over bureaucracy. I say so because there that has to be taken into account when talking about Bureaucracy. According to the textbook, they hinted to the fact that bureaucracy can range from postal service to drilling and when taking all the bureaucracy individual, government and polices into account, it is just too much
The Development of a country to a large extent depends on how the bureaucracy of that country functions. As bureaucracy gives input in policy making, implements those and evaluate outcome of an implemented policy,
and local authority it will gain the most structure from the people, instead of constantly
Other common terms for the idea of organizational decentralization include: team self-management, self-management, shared control, distributed leadership (Lambe, Webb, & Ishida, 2009) and holacracy (Robertson, 2007). While these terms may have small differences they all describe the common theme of distributing power across organizations. Several concepts help to explain why decentralization and the encouragement of teamwork throughout an organization are often superior to traditional management structure.
Before compare the two different models TPA and NPM, I will illustrate what is the
Structure and hierarchy come from how work and the work processes are coordinated together and relating how tasks and coordination of these tasks is to be obtained. When determining the authority in the structure of an organization, there are two major options, centralized and decentralized. A centralized organizational setup is where the authority to make important decisions is retained by managers at the top of the created hierarchy whereas a decentralized organizational setup is where the authority to make important decisions about organizational resources and to initiate new projects is delegated to managers at all levels in the hierarchy. Each choice is made based upon the main goal/task of the organization and what would better fit the organization. Whether work/the
The backbone of a decentralized system is to eliminate 561 “agency-delegated functions,” this functions government ministries delegate to prefectural governors, municipal mayors, and local governments; and replace many of them with “local autonomy functions.”
Management Control Systems are systems that are put into place within organisations to help ensure that managers within organisation’s act
In a centralized organizational structure one individual is responsible for making all the decisions and maintains control of the company by giving direction. While Decentralized organizational structures often rely on several persons with the authority to make final decision for the company’s well being. Some benefits associated with a centralized organization are as follows: Reduction in cost in the work environment, having a focused vision on one common goal and Reduction in conflict. A Few drawbacks of a centralized organization include, No secrecy because all ideas and decisions are conveyed to all, No special attention and Delay in work. Advantages associated with Decentralization are; Huge relief is provided off the top managers, Greater use is made of employees skills and Decision making is left up to educational and well informed people.
In today’s ever changing economy, society’s idea of management is becoming increasingly more difficult to sustain with the continuous demands of the position. A successful manager must have a certain level of expertise and problem solving techniques to carry out the daily tasks required. Over the years, there have been various ideas on what management is, such as planning, organizing, leading and controlling.
1. Coordination. The size of modern organisations is quite large. A large amount of capital and large number of people are employed in them. This complicates the problem of control as there are many units producing and distributing different products. In order to coordinate their activities, an efficient system of control is necessary.
The purpose of this case study is to describe and analyse the features of the management control system (MCS) of University of Southern California (USC). Before commencing the analysis a brief background of USC is provided.