Decentralization: good or bad

Essay by squire_1102College, UndergraduateB, April 2004

download word file, 4 pages 5.0

Decentralization is a question facing top executive's everyday. Companies are deciding whether or not it is a good idea to hand down authority to lower levels of the company or to remain centralized so top level managers have the only input in organizational operations. Not only companies but also countries have to decide whether or not to decentralize. There are many advantages and disadvantages to both sides. This paper will examine the benefits of decentralization and whether they are good or bad for an organization.


I would hate to work for a company where I had no say in anything that happened. I'm not saying that I need to make top management decisions or decide on the organizational operations, I would like to be able to make suggestions and have input on how to improve the company or how to make things run better and more efficient. Decentralization would allow me that freedom by letting me have the input I need to be a more happy employee and increase my motivation.

Employees dislike being told just what to do and have it left at that. Come to work do your job and leave is not really a pleasurable environment, though many people and also many mangers like it that way. There are many reasons to decide to decentralize including financial situation and employee satisfaction to name a few. Decentralization can occur in many different forms and in many different places.

What is Decentralization and how does it affect us?

Decentralization is commonly referred to as the downshift of power. It occurs when the right to make decisions is passed own to the middle and lower levels of the management hierarchy. Centralization on the other hand is when top management makes all the decisions regarding the organizational structure. Decentralization allows...