Response to the following problem:
You Decide: Which is more conducive to a successful organization: a centralized or decentralized company?
With the improvements in technology and communication, many companies are able to decentralize their operations and still work effectively. Many segment managers have been given the responsibility to make decisions and react quickly to problems for their respective department without consulting upper management.
Although the trend has been towards decentralization for some time, is this the best solution for today's companies?
Many people believe that by decentralizing operations, the overall goals and objectives of the company are forgotten.
What one segment manager does for his or her department may not be in the best interest of the company as a whole.