Management Part I: The Biggest Term Paper

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(Bhatnagar, 2004)

PART III

INSTRUCTIONS

The following Decentralization Worksheet contains some observations on decentralizing. As you review each of the statements, provide an example that illustrates why this statement is important and related problems and benefits of the situation or condition indicated in the statement. SELECT ANY 2 Decentralization Worksheet: A large number of factors determine the extent to which a manager should decentralize. Clearly, anything that increases a manager's workload creates pressure for decentralization because only a single person can accomplish a finite level of work. As with many facets of management, there are advantages and disadvantages to decentralization.

Question

The greater the diversity of products, the greater the decentralization.

An organization, such as a national supermarket chain, that sells a diversity of products will benefit from decentralization because decentralization allows local and regional managers to tailor the selection of goods to the specific market -- and also prevents a stocking up of goods not desired by that market, but desirable perhaps in other regions.

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Question

The larger the size of the organization, the more the decentralization.

This principle seems like a no brainer -- until one encounters a 'control freak' manager in a large organization, which underlines this principle all to starkly, when different responsibilities are not delegated properly, and not enough attention is given to these tasks. A small, single proprietorship may require an intense knowledge of a specific local market. Because a small organization cannot sell at volume, it instead offers the customer a product or service that is customized and sold with a relatively high degree of attention. But a large organization, for instance, The New York Times, requires a decentralized environment because it fulfills a number of separate informative functions, with many employees performing different tasks that are often only tangentially related to one another.

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