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Decentralization of an Organization

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Do you believe it is possible to have effective overall management in a decentralized company? What are the advantages and disadvantages of decentralization? Does a company getting so large that it has to decentralize play a part in the gap between financial goals and actual ones? Please give personal opinion, experience and cite information gathered through research of existing companies' experiences.

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Solution Summary

Organizations must sometimes change their structure depending on their growth.

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Companies are an organism meaning they will change organically. The leadership within the organization should always shape what direction an organization will move. When a company grows and decides to decentralize it is because of the need to remain efficient and maintain growth. When a company decentralizes there are many positive advantages. One of the main advantages is that individual departments will have more autonomy to act as their own centralized unit and make their own decisions based on the company goals. The major advantage of autonomy between different department's means even when a company grows the organization can find ...

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