Answer to Question #183237 in Management for EMMANUEL ANIEWU

Question

decentralization is one of the trends in organizational structure. critically examine why decentralization is becoming more common in contemporary organization.what should companies consider when determining the degree of decentralization

Answer 1

Decentralization is on the rise in most of the organization because it flatten hierarchical structure of the organization. When the hierarchy structure is flattened it become easier easier to make decision. Decentralization is trending because of decision making and that why most contemporary organization are adopting the mechanism for complex companies. The following are things to consider when an organization is determining the degree of decentralization. First is the size of the organization and its complexity. If the organization is large there is need of decentralization, but if it is smaller no need because it is expensive. Second ,the nature functions of the organization highly determine the degree of decentralization.