Centralization And Decentralization Essay

Decisiveness in Empowerment:
The Crucial Element of Decentralized Decision Making

Decisiveness in Empowerment:
The Crucial Element of Decentralized Decision Making

Centralized Management vs. Decentralized Management 4

  The Influence of Corporate Culture 5

  Leadership 5

  Organizational Structure and Internal Control 6

Conclusion 8

Bibliography 10

Decisiveness in Empowerment:
The Crucial Element of Decentralized Decision Making
      In a world that is being made smaller and more complex by the process of globalization and advancements in communication technology, organizations must re-invent their own systems of management while acclimating to changes.   Communication, in the 21st century, is so sophisticated that worldwide organizational activity can be centrally managed from the headquarters unit.   Just as easily, management can be “decentralized” so that maximum efficiency can be won with the careful delegation of responsibility.   The question that presents itself, when globalization and advanced methods of communication leave top decision makers within an organization with more options than ever before, is, “What are the benefits of centralized and decentralized management?”
      This paper is intended to show that there are advantages associated with both centralized and decentralized systems of management, and that decentralization is more complex.   Decentralization must occur with certain decisiveness if it is to be beneficial rather than harmful.   The necessary decisiveness, specifically, is the ability to pass down not only responsibility, but also real authority, to managers at the various divisions within a diversified, decentralized firm.   Top management might be willing to delegate responsibility, but giving up authority is more difficult.   With regard to topics such as corporate culture, leadership, internal control, and organizational structure, the nature of decentralization will be explained....