Decentralization: Good Or Bad Essay

1069 words - 4 pages

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.DecentralizationI 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 people and their institutions to be empowered throughout an entire societal system whether global, national or household levels. The more people are involved in the decision making andManagement at all levels the greater the potential for effective and equitable development.Decentralization has its ups and downs. Looking at it through a government prospective it can be a good thing. Instead of just a federal level you also have provincial representatives. To go even further, you can include town mayors and aldermen. They can be split into fiscal, administrative and political processes of decentralizing. Central governments around the world are decentralizing to have lower level types of government and into the private sector. Political pressure is what drives most to decentralization. It's tough to say whether decentralization is good or bad because of the fact it may be better for some, and not for others. It varies greatly within a country or the structure of an organization.Decentralization in Healthcare and EducationThe general idea for decentralizing healthcare is to hopefully improve quality and coverage. But it could come at a price because of the impact it could have on health...

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