I need help analyzing the advantages and disadvantages of decentralized organizations based on decision-making, include examples of performance measurement in decentralized organizations.© BrainMass Inc. brainmass.com October 25, 2018, 8:58 am ad1c9bdddf
Decentralized organizations enjoy more diversity to explore opportunities, can optimize local conditions and can earn more rewards for individual performance. Managers in decentralized units are given the charge to try to figure it out for themselves. For instance, in a decentralized retain chain, the local manager can decide what products to carry since they have more detailed information about the local area and so may be able to make more responsive decisions than a central remote decision maker. Decentralized settings are seen as more motivating because the local manager believes they can impact profits (because they can make critical decisions about how to serve the market, what products to sell, what advertising to buy and so forth) (Rajan, 1992) and so will work harder than if the benefit of all their hard work accrues to everyone evenly. For instance, local managers did a better job selling warranty plans when they were responsible for warranty claims (Dai, Zhou & Xu, 2012). Decentralization also permits the organization to evaluate local managers based on the performance of their ...
Your discussion is 605 words and includes four scholarly references.
Series of explanations of organizational structure: Which is the correct explanation?
Go online to http://www.answers.com/topic/organizational-structure and explain what you found (pro and con) as it relates to
Chapter 3 Hall, R., & Tolbert, P. (2009). Organizations: Structures, Processes, and Outcomes. Upper Saddle River, NJ: Prentice-Hall, Inc.
We have considered a series of explanations of organizational structure. These
have ranged from those emphasizing more material factors, such as size and
technology, to those focused on more ideational factors, such as internal and
external cultural inﬂuences. Which is the correct explanation? It should be obvi-
ous by now that neither "all of the above"nor "none of the above"is the appro-
priate answer. The explanations of structure must be considered in combination.
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