Any business will have obstacles that they will have to face eventually. One such issue that can happen frequently in businesses are issues of trust. There are many methods to go about solving these trust problems, but one such way that can be effective is decentralization.
What is Decentralization?
Essentially, decentralization (which is also known as distributed leadership) is a transfer of the power to make decisions and assignment of responsibility for results. Various organizations have gone back and forth as to whether or not they should have centralized or decentralized standards. It all may depend on the needs for the business.
For example, certain markets may place more emphasis on the needs of the market as opposed to the needs of the business hierarchy, which can facilitate a decentralized organization. Organizations that are decentralized can have hierarchies, but individual teams are responsible for certain decision-making. Usually, this decision-making power is reserved for those who may be on the lowest of the business hierarchy.
What’s important to remember is that there is no business that can be fully decentralized or centralized. The only thing that varies is the extent to which the centralization, or lack thereof, is present. Size, culture and strategies that can influence which direction a company wants to go into.
Regardless of such, in order to alleviate certain issues regarding trust, businesses may want to look at a decentralized structure. Here are some reasons why.
Provides Better Control
One of the best aspects about a business having decentralization is that the objectives of the organization are met by verifying contributions of each department. Certain businesses go about this in different ways from management information systems to balance score cards.
This can prove to be valuable, because if a corrective decision has to be made, it can be done so in a timely manner. That way, every department of the business are on the same page and any suspicions can be cleared up. You can visit Cyrus Baseghi for more information about certain methods that businesses use to solve problems such as these.
More Efficient Decision-Making
Organizations can come up with potential solutions and decisions more quickly than those with a centralized framework. This is because managers can make decisions without having to wait for approval from a chain of command at the top. This can also allow for swift reactions to gaining or losing customers.
Emergency Preparation
There will be emergencies that businesses have to face sooner or later. It is not a matter of if, but when. Sometimes, the business owner will have to be away for an extended period of time due to extraneous factors that cannot be controlled. When they are gone, what will happen? If a business is decentralized, then that will increase the chances that a business will become self-sufficient exponentially.
If managers and employees are conditioned to work autonomously, there will be increased confidence that competent decisions can be made without having to wait for a specific person. You can visit Cyrus Baseghi for more information on these certain advantages