Advantages Of Decentralizing Decision Making Authority

Decision-making in the workforce is a process of responsibilities used by upper management to implement, enforce rules, regulations, and maintain a successful environment. Decision-making implemented more effectively by making a plan, thinking it through, accepting more than one opinion and determining what is best. However, decision-making often utilized more effectively by opening doors of opportunities for a suggestion, question, discussion, and feedback. Although, more involvement helps improve understanding, utilize behavior skills and present opportunities for better communication. Everyday life consists of decision-making, the right decision may not always be applied, but ensure room for improvement and opportunity. Individuals approached decision-making in many different ways. As stated by (Jones, Graham, & Bateman, 2006) decision making is a procedure used to recognize a problem, weigh the alternatives and evaluate a solution in which, certain situations will require different approaches to become effective.

Delegation is widely acknowledged to be an essential element of effective management (Yukl, G. 1994). Delegation is basically a process of assigning responsibility, sharing authority, and producing accountability in organizations. It is a managerial instrument that allows managers to nurture subordinates to capitalize the subordinate’s potential and ability to meet organizational goals and objectives. As a form of employee involvement in decision-making, delegation describes a category of leader behavior that entails assignment of new responsibilities to subordinates and additional authority to carry them out (Yukl, G. 1998). Managers usually find it easier to speak about delegation of

Cervus’ decentralized decision-making model could be easily imitated. At first glance the model’s imitability appears to be a major barrier that is preventing a sustainable competitive advantage. However, decentralization is not a new concept and was certainly not developed by Cervus. The true value lies in Cervus’ ability to implement and execute the concept, which involves far more than simply imitating a model or a process. Would-be imitators must also invest the time necessary to develop the experience and capability to implement the model effectively. Thus, Cervus’ decentralization capabilities are actually quite difficult to imitate as they require a significant time investment.

The communication is extensive in both directions (from employees to leaders and vice versa). This style can be particularly useful when complex decisions need to be made that require a range of specialist skills: for example, when a new ICT system needs to be put in place, and the upper management of the business is computer-illiterate. From the overall business’s point of view, job satisfaction and quality of work will improve, and participatory contributions from subordinates will be much higher. However, the decision-making process could be severely slowed down unless decision processes are streamlined. The need for consensus may avoid taking the ‘best’ decision for the business unless it is managed or limited.

The process of decentralization redefines structures, procedures and practices of governance to be closer to the citizenry and to make them more aware of the costs and benefits; it is not merely a movement of power from the central to the local government. It is the central government has to make some effort for the enactment of legislation.

The third frame we are looking at is the Political Lens which looks at the power within an organization. Organizations for this lens are looked at as arenas so to speak, in that the people working within the company compete for power and scarce resources. The actions of bargaining, coercion, compromise, and negotiations are a part of everyday life within these establishments. If power is too concentrated inside a workplace, it can result in having a problem or problems. However, the same thing goes if power is too delegated in an organization, it can cause problems because it can result in nothing getting done. Making decisions within an organization involves assigning the scarce resources among the individuals who work for the company. Decision

Our section owns nine safety boats that are used by numerous units around Australia. We needed to downsize the fleet to five craft to save on sustainment costs and other expenses. We required a decision from higher headquarters in order to decide on how the craft would be distributed among the user units. The decision from higher headquarters was delayed a number of times as the member responsible for the decision did not want to offend the unit commanders by taking craft off them, while other units got to keep theirs. Eventually, the decision on allocation was passed to the member’s commander, who was well above the level required a decision of this nature. By simply looking at the merits of who needed the craft the most and allocating based on that reasoning the decision could have occurred a lot quicker and at an appropriate level. This decision-making paralysis at a higher level significantly affected our ability to conduct our work.

Decentralization has several advantages. Staffs are encouraged to develop decision-making skills, which help them advance in their careers. The autonomy afforded by this style of operation also increases job satisfaction and motivation. For example, if maintenance staff receives a complaint on a fault by a customer, in a decentralized organization the maintenance staff has the power to fix the problem without getting the approval from the administration. If that same front maintenance staff determines that a customer has been

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.

Owing to limited rationality of man, Herbert Simon contends that most decisions are based on limited rationality, that is, the organization is working like a brain. It would be impossible for organizations to attain perfection since their members have limited information-processing abilities (Morgan, G, 1997)

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 decision is to select an action among a number of actions that solves a given problem, that prevents a problem from happening, or that forces to apply new ideas for development. The need for understanding decision making process is increasing because the complexity of modern organizations is increasing, and because the modern organizations' effectiveness depends on the decisions made by the managers. The question is how to select the most appropriate action to solve the problem satisfying all stakeholders.

The focus of my term paper is the decision making process used by today's top-level managers. Top-level managers, such as Chief Executive Officers (CEOs), Chief Operations Officers (COOs), and Chief Financial Officers (CFOs), must make critical decisions on a daily basis. Their choices and the resulting outcomes affect the company, the employees, and the stakeholders. Due to the high importance of their decisions, the process they use to reach them merits a close examination.

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.

As individuals, we make decisions throughout the day weighing the cause and effect, cost and benefit, risk and impact of our actions on ourselves and upon others. When taken to a larger scale, as the manager of a team, the CEO of a corporation, or the leader of a nation, the decisions exponentially increase in impact and importance.