WV8 is a large not for profit (NFP) public sector organisation responsible for organising the operation of publicly financed schools within its region. WV8 receives its income solely from government grants but, because of funding cuts, is under pressure to maintain existing services whilst operating more cost effectively. Recently, a government spokesperson publicly criticised public sector organisations claiming that they are expensive, lack skills found in the private sector, such as marketing and business acumen, and have a lack of understanding of the customers they are meant to serve.
Discuss the potential advantages for WV8 of decentralising the CIS function.
Decentralisation includes a systematic attempt to delegate functions and responsibility to the lowest practical levels of authority within an organisation. Inevitably, there are both benefits and disadvantages associated with decentralisation of central services like CIS. The advantages are reflected here.
A positive response to user feedback
Decentralisation offers a positive response to criticisms made by WV8's service users. Service users are, in reality, internal customers of providers of central services like CIS. A move to decentralisation might be seen as a positive response to the claims that organisations like WV8 have a lack of understanding of the customers it is meant to serve.
Symbolic response to external forces
Decentralisation might be seen as a proactive response to the challenges WV8 currently faces. WV8, like lots of public sector organisations, is under pressure to deliver value for money in the provision of services. With funding cuts, WV8 is under pressure to function more cost effectively. WV8 will also require to meet the challenge of the government spokesperson who claims that organisations such as WV8 are 'expensive'.