Centralisation and decentralisation

  Centralization is an organization which decisions are made by senior managers. In my opinion, it will be easier to make decisions because every subordinate must to follow the orders from managers. The managers can pass orders down to staff and make them implement immediately without hesitation. That’s the reason why my Business teacher said that it does not take time to make decisions and the manager will have full power in an organization.

  However, in order to make efficient productivity in an organization or company, the managers need to have accountability, good leadership and management skills so that the staff will follow the orders. Personally, I think this type of organization will give no freedom to employees. As the hierarchy has more layers, the managers might not understand the customer’s wants and needs so they might fail to target the market.

  Decentralization is an organization or a company which decision-making is not made by the managers, everyone in there will have chances to show their opinion. This type of organization is more democratic; everyone will be respected and listened. The hierarchy will be flatter so decisions in the organization are made closer to the customers. As there is no controlling from managers, people can have more freedom and less stress on work.

  In contrast, there will be the times that need leadership. For example, I’m working in financial part of the organization, I’m having dispute with the advertising department because they wanted to use endorsement to advertise. I disagreed with them because it’s costly to do so. It took us 6 months to come into an agreement because there is no one as a leader to solve the problem. This is the reason why decentralize can be time consuming and bring disagreement between staff.

  Both type of organization have pros and cons. In my opinion, I prefer the decentralization because I don’t want to have too much pressure from managers. If I work in an organization/ company in the future, I want to help the company to be closer to the customers because customers are the most important part in a business.