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Business & Marketing
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English (U.S.)
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Week 6. Decentralization. Business & Marketing Essay
Essay Instructions:
Using your textbook (Samuelson, W. F., & Marks, S. G. (2015). Managerial Economics (8th ed.). Hoboken, NJ: Wiley). and one outside source answer the following question. Do you think decentralization makes decision rights assignment more complex? Why, or why not?
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Decentralization
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Decentralization
Businesses today are in an environment where communication has become cheaper and more efficient that it was a few decades ago. With the advent of the internet, instant messaging and emails, it is now much easier for the employees to communicate. As such, it is much easier for the staff to be involved in the decision making of the elements at the work place that affect them (Samuelson & Marks, 2014).
Decision making in most of the companies has always followed the tradition hierarchy, where the main decisions come from the top and flow downwards to the staff in the middle and lower management. There is little feedback that then flows back up through the different ranks and only the most sensitive gets to the top (Malone, 2004).
Decentralizing is a sensitive element and one that comes with a number of elements especially for the staff. All of these are a positive attribute and justify the assignment of decision rights to the staff at the bottom of the ranks. More importantly, it b...
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