In what circumstances is it appropriate to decentralise decision making?

Decentralisation of decision making is the process of involving different people in an organization in making key changes whether these changes are policy based or otherwise, different levels of management are involved and their expertise and opinion is sought before any changes are enacted. There are 2 key decisions making methods in an organisation, namely centralized and decentralized, In the latter, only the top management is involved in making key changes and decisions which affect the whole organization. This system is advantageous in that, it is faster, reliable and less tasking. While it is still used in majority of organizaions, most organizations are shifting to the decentralised method and therefore are involving different levels of management in the decision making process. This system is ideal in a number of situations as explained below. Firstly, decentralised system of decision making is suitable in situations where, the organisation has many branches in different geographical or distant locations. This is usually necessitated by the fact that, there arise emergency situations whereby key and quick decisions have to be arrived at and therefore contacting the central decision making authority within a short period of time is out of question question. Secondly, decentralised decision making process is preferred when an organisation is experiencing major staff turnover and their fore lack of key management staff through sackings or retires or any other natural attrition method warrants decisions to be made irregardless. Thirdly, decentralised decision making process is ideal whereby, key decisions are being made at departmental levels such as in production department. Empowering departmental heads to make key decisions perhaps pertaining to the purchasing of crucial ingredients as well as other technical areas may require a decentralised decision making model. PAGE 2: Organisational culture can present difficulties for management initiated change programmes? Discuss Organisational culture refers to the employee – employer relations which shape how the two parties interact and intermingle at the work place. Also, organisational culture can be shaped by, employee backgrounds, external factors as well as the level of support accorded to the employees by the organization staff. Usually there are two common types of organisational cultures namely, positive and negative culture. The first one affects management initiated programmes in that, employees experiencing this kind of culture are more likely to accept any changes in the organisation as usually there is a good blood between the two parties which therefore translates into a strong trust, and mutual understanding. In such an environment, any changes coming from the management whether good or bad are welcomed without any queries and are looked at as being beneficial to the employees. This in turn leads to failure of pragrammes initiated by the management in that, as long as the staff who are tasked with project implementing do not question anything in terms of abnormalities and even if there are clearly missing facts, this is never realized until it is too late therefore causing programme failure. On the other hand an organization culture which is negative leads to customers shunning away so that, any well meant programmes will be fail to take off since, negative publicity which the employees can advance in the process of interacting with the different stake holders also does have a bearing on the outcome of the projects. Lastly, organizational culture determines output in workers in that, a negative attitude amongst employees is more likely to lead to low output in that, it is highly correlated with low morale and therefore productivity. PAGE 3: Discuss why managerial authority is so important to our understanding of organisations and how this power has to be legitimised not just by individual workers but by the organisations culture. Failure to appreciate managerial authority stems form a negative culture which in stead of pestering a mutual understanding between workers and employers causes tensions and misunderstandings in an organization. Usually, for the organisation to meet its goals and objectives the management has to execute its duties well just as stipulated in functions of management. This involves carrying out duties and responsibilities which must be commensurate with the corresponding authority. In situations whereby managers are allocated duties and responsibilities without proper and clear cut, authority to accompany it, the management becomes ineffective and this contributes to failure of many organizations. Therefore, there is a need for decision makers while allocating managers duties to weigh the responsibilities and duties assigned to employees versus the authority and power required to execute the roles and responsibilities effectively. To achieve the above, management should work towards having and inculcating in the organization, the right culture. This can be achieved (if it is lacking), through the launching of strategic plans which could incorporate vision and mission statements, core values of the organization as well as the social responsibility statement of the organization. All the above are necessary in ensuring that, the organization functions in the right environment whereby the needs of all members in the organization are taken care of and employees feel free and as a part of the organization. This in turn result into a culture of unity and strength.