Decentralized organizational structure

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Decentralized organizational structure

  1. 1. DECENTRALIZED ORGANIZATIONAL STRUCTURE<br />
  2. 2. Centralization:<br />The process of transferring and assigning decision-making authority to higher levels of an organizational hierarchy.<br />
  3. 3. Decentralization:<br />The process of transferring and assigning decision-making authority to lower levels of an organizational hierarchy.<br />
  4. 4. DECENTRALIZATION:<br />Definition: The process of transferring and assigning decision-making authority to lower levels of an organizational hierarchy.<br /><ul><li>In a decentralized organization, the decision making has been moved to lower levels or tiers of the organization, such as divisions, branches, departments or subsidiaries.
  5. 5. Knowledge, information and ideas are flowing from the bottom to the top of the organization.
  6. 6. The span of control of top managers is relatively small, and there are relatively few tiers in the organization, because there is more autonomy in the lower ranks.</li></li></ul><li>FORMS OF DECENTRALIZATION:<br /><ul><li>Deconcentration: The weakest form of decentralization. Decision making authority is redistributed to lower or regional levels of the same central organization.
  7. 7. Delegation: A more extensive form of decentralization. Through delegation responsibility for decision-making is transferred to semi-autonomous organizations not wholly controlled by the central organization, but ultimate accountable to it.
  8. 8. Devolution: A third type of decentralization is devolution. The authority for decision-making is transferred completely to autonomous organizational units.</li></li></ul><li>
  9. 9. STRENGTHS OF DECENTRALIZATION - CHARACTERISTICS<br /><ul><li>Philosophy/emphasis on: bottom-up, political, cultural and learning dynamics.
  10. 10. Decision-making: democratic, participate, detailed.
  11. 11. Organizational change: emerging from interactions, organizational dynamics.
  12. 12. Execution: evolutionary, emergent. Flexible to adopt to minor issues and changes.
  13. 13. Participation, accountability. Low risk of non-invented-here behaviour.</li></li></ul><li>Thank You<br />

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