Characteristics Of A Decentralized Organization

702 Words 3 Pages
Organizational structure sees that the tasks within an organization are properly distributed, categorized and coordinated. Structure is important for both small and large organizations. It helps in ensuring that tasks are allocated and performed effectively and efficiently. Using a sound organizational structure, promotes productivity of the employees, reduces conflicts among them and improves their decision making process. Organizations can be set up in different ways to achieve their goals. They can be centralized or decentralized.
Centralized organizations are the ones whose command of control is vested to the top management. Lower level employees merely follow those commands and acts in the best interest of the top executives. This can create sense of detachment and lack of trust among the employees. On the other hand, decentralized organizations spread out the power and control among the manager and pushed down from the top executives. Over the years,
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They feel like they are a part of something big, and play a bigger role than they world in a centralized organization. Decentralization spreads out control among different departments and their managers. The managers plan, coordinate and monitor the activities of the employees. These managers are closer to what’s actually happening, and solve problems better. Employees also feel empowered due to their ability to make decisions independently. Employees, now, come up with more innovative ideas. For example, Procter & Gamble empowered a section of its employees to make product development decisions regardless of the hierarchy of command. This improved the product development process and led to the creation of new and innovative products. This instills a sense of belonging, responsibility and trust among the employees. Employees perform better, because the managers more closely monitor their activities. , Thereby, increasing

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