Organization structures that have been decentralized allow for delegation of authority to all echelons of management and in all departments of the organization. The top managers of the organization retain the prerogative of making salient decisions and structuring organization policies while the rest of the authority is disseminated among the middle level management and the lower echelon management. A representation of decentralization could be when an operational manger delegates his duties to a junior official upon the request of the junior officer then this is a form of decentralization.
Decentralization structures have extensively impacted the employee/manager relationship within the organization. Managers in this system trust their subordinates enough to offer them a chance to make some decisions affecting the organization independently. This has led to the subordinates enhancing their skills and capabilities especially in making critical business decisions. A pool of shrewd and talented employees is created. The mangers are encumbered with less managerial burden since the decision making organs have been diversified among lower echelons of management (Ctb.ku.edu, 2015).
The decentralized structure offers profound motivation and builds on morale of the employees to attain the goals of the organization. Knowing that the manager trusts you as a subordinate staff to decide freely on matters that affect the business is a desired impetus to drive the employees in striving to impress and in doing so the organization grows. It also gives the employees a feeling of significance and make them believe they have more input in the direction of the organization.
Decentralization has been applauded by many scholars for its impact on strategies of the company. The integrative and heterarchical nature of a decentralized system has overwhelming impact on a companys strategy such us producing higher levels of job satisfaction among employees. An organization success is tagged on having the right instrument to elicit the desire values and behaviors from employees. A decentralized structure does this quite efficiently as it natures the requisite attributes among employees for adequate response to problems, blend of tasks accorded to staff, improved skills and abilities and all this result to impressive performance of the organization due to a decentralized structural arrangement (Referenceforbusiness.com, 2015).
Ctb.ku.edu,. (2015). Chapter 9. Developing an Organizational Structure for the Initiative | Section 1. Organizational Structure: An Overview | Main Section | Community Tool Box. Retrieved 10 September 2015, from http://ctb.ku.edu/en/table-of-contents/structure/organizational-structure/overview/main
Referenceforbusiness.com,. (2015). Organizational Structure - strategy, levels, examples, advantages, manager, model, type, company. Retrieved 10 September 2015, from http://www.referenceforbusiness.com/management/Ob-Or/Organizational-Structure.html
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