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Obviously, the advantages of each model for corporate learning management are, in essence, the
disadvantages of the other.
Overview
The emergence of the debate over decentralization vs. centralization as a
contemporary facilities management issue comes to us in a era where an
organizations efficiency, speed, and usage of time have never been more
critical. The demands on an organizations ability to rapidly respond to change
while maintaining a sense of stability rests heavily on the combined application
of the these strategies. The debate is not concerned with which strategy is
better however - rather it is concerned with the extent to which the strategies
should compliment one another. Decisions to decentralize or centralize a
company's operations, facilities, or management policies must be derived from
a careful analysis of the company's existing state, immediate needs, and future
goals. This web site seeks to clarify the distinction between these seemingly
opposing strategies and stress the importance of their coexistence within
organizations.
Decentralization
Centralization
Contemporary Examples
One way to better understand the difference is to consider the following
examples of each strategy.
Centralization
It makes sense to centralize a town's library system. By having a main library
with divisions in neighboring areas, a system of inter-library loans and
standardized service procedures can be easily implemented. With a centralized
library, a specific book that is in one library can be easily tracked and checked
out by a patron in any part of town. A decentralized strategy might not be
appropriate in this situation as it would be much more difficult to keep track of
where materials were located.
Decentralization
For many fast food restaurants across the United States, decentralization plays
an important role. While many cooking procedures and furniture layouts are
standardized and monitored, individual restaurant owners are responsible for
tasks such as hiring, maintaining adequate food supplies, and facility
maintenance. With the love of hamburgers and french fries and other greasy
foods that the American public seems to have, thousands of fast food
restaurants are needed across the United States. In order to meet this demand,
McDonald's chose to implement decentralized strategies for individual owners
to follow. Since a franchise owner's profit is contingent upon their individual
franchise's success, owners can be trusted to make decisions based on their
particular facilities needs.
Centralization
Benefits Costs
Greater efficiency May lessen internal communication
May lessen involvement with organizational
Increased professionalism
image
May lessen the extent of "team member"
Less parochialism
feelings
Uniform corporate image Possible loss of innovation
Standardization of space allocation
Delayed response time
and furniture distribution
Cost Savings on bulk purchases of Manipulation of zoning, space allocation, and
building services and materials lease requirements probable
Minimizes company's dependence Dependence on centralized authorities may
on outside consultants and vendors discourage the development of local skills and
talents
Allows for company wide
Necessary changes become slow to implement
databases
Decentralization
Benefits Costs
Enhances communication and
Loss of objectivity may occur
interaction among employees
Promotes project prioritization Possible loss of budget control failure
Creates a need for less formalized Possible loss of ability to address cross-
communication therapeutic issues
Facilitates a more comprehensive Limited opportunity and ability to think
understanding of individual units more broadly
Less formal restrictions promote Need for constant employee training since
innovation and creativity operations are separate
Increased input from local hubs Veteran knowledge easily lost with turnover
More difficult to ensure and monitor
employee compliance with company policies
Organizational Design For Multinational Companies
Overview: The focus of this presentation is upon organizational design. It
discusses how organizations structure subunits and coordination and control
mechanisms to achieve their strategic goals. The basic question, which is
addressed, is how to divide work among the organization's subunits? Designing
of the organization could be done through matrix structure. It discusses about the
Hybrid and Worldwide matrix structure, which supports strategies that include
local adaptation and concern for globalization and mix geographic units with
product or function units. The article also discusses about structures of
multinational operations and coordination and control.
Organization Design
Organization design is central to an enterprise’s ability to be market driven,
adaptive, innovative, and more – in short, to be able to compete effectively.
Hay Group works with clients to design and implement organizations that deliver
on their strategic vision and business results. Our approach is guided by the
following core principles:
Our expertise is focused on helping clients get the most value from their work
structures. We advise on the design of overall organization “architectures”, e.g.,
structures, processes and culture. We also assist with the supporting
components of those architectures – ensuring that individual jobs are well-
defined; and, accountabilities, interrelationships and reporting relationships are
clear and logical.
1. Being referred to too many 3rd parties to implement the entire solution for their
organizations and hence choosing to go to our competition.
2. Could not understand why we were unable to make small changes quickly to our
solution for them.
3. The product was powerful but hard to learn.
We needed a dynamic organization that could understand customers’ real problems and
put together prototypes and solutions quickly.
The meeting lasted about 1 hour. Many ideas were discussed, but no direction or pattern
emerged. In the end, we were asked for proposals by the next morning.
Organization Design
An organization's design includes more than its formal structure—the boxes on
an organization chart and the lines connecting them. It encompasses
work practices, culture, processes, and staffing, which together comprise
the organizational architecture. Using our proprietary tools and
methodologies, we help leaders align their organizational architectures
with their business strategies.
Competing by Design
David A. Nadler and Michael L. Tushman
Total integration of corporate structure, workplace culture, and employee motivation can help companies
achieve a competitive advantage. Bringing all such processes together into one unified organization is as
important to a company's future as the architectural unity of the building that houses it. (Jossey-Bass
Publishers, 1997)
Companies often identify and select partners in an ad hoc manner as the need arises, and
once initiated, these relationships are not actively managed to ensure they deliver
maximum value. Given the complexities of co-development, this is a recipe for failure.
Ask yourself:
PRTM offers a broad range of Partner Selection and Management services to address the preceding
questions and ensure you achieve maximum value from your partnerships. We work closely with our clients
to:
Client results
PRTM’s hands-on approach to Partner Selection and Management delivers significant results to our clients: