decentralized

(adjective)

Diffuse; having no center or several centers.

Related Terms

  • Line management
  • common law
  • functional
  • network
  • agile
  • organization

(adjective)

Dispersed rather than concentrated in a single, central location or authority.

Related Terms

  • Line management
  • common law
  • functional
  • network
  • agile
  • organization

(adjective)

A structure where business units operate autonomously and have greater decision-making power.

Related Terms

  • Line management
  • common law
  • functional
  • network
  • agile
  • organization

Examples of decentralized in the following topics:

  • Decentralizing Responsibility

    • In decentralized structures, responsibility for decision making is broadly dispersed down to the lower levels of an organization.
    • Decentralized organizations must be mindful of the possibility of running in too many different directions at once.
    • This image illustrates a decentralized (often referred to as a "flat") organizational chart.
    • The management structure in a decentralized organization changes from a top-down approach to more of a peer-to-peer approach.
    • Compare and contrast centralization and decentralization of responsibility within the organizational hierarchy
  • Characteristics of Organizational Structures

    • Important characteristics of an organization's structure include span of control, departmentalization, centralization, and decentralization.
    • Each of these structures provides different degrees of four common organizational elements: span of control, departmentalization, centralization, and decentralization.
    • Decentralization occurs when decision-making authority is dispersed among the lower organizational levels.
    • With decentralized authority, important decisions are made by middle-level and supervisory-level managers.
    • This diagram compares visual representations of a centralized vs. decentralized organizational structure.
  • Team Communication

    • Communication patterns describe the flow of information within the group and can be described as centralized or decentralized.
    • In contrast, decentralized communication means team members share and exchange information directly with each other and with the group.
    • Most teams use a mix of the two approaches, choosing centralized communication for messages that are more complex, urgent, or time sensitive, and decentralized communication when discussion and idea generation are needed.
  • Network Structure

    • ., more flat), more decentralized, and more flexible than other structures.
    • Because the network structure is decentralized, it has fewer tiers in its organizational makeup, a wider span of control, and a bottom-up flow of decision making and ideas.
  • Increasing Empowerment

    • One key technique of empowering employees and providing autonomy is decentralizing the organizational structure.
    • Notice how the diagram of the centralized organization looks like one large asterisk with many spokes, whereas the diagram of the decentralized organization looks like many small interconnected asterisks.
  • Basic Types of Organizations

    • Committees represent a decentralized approach to organizational design and tend to have a collaborative, often unstructured workplace.
    • In a matrix organization, teams of employees perform work to take advantage of the strengths and compensate for the weaknesses of both the functional and decentralized forms of organizational structure.
  • Combining Internal and External Analyses

    • These actions can be supported by decentralized structures, local autonomy, and strategic alliances.
  • Flattening Hierarchies

    • This "flattened" hierarchy promotes employee involvement through a decentralized decision-making process.
  • Increasing Coordination

    • In practice, coordination involves a delicate balance between centralization and decentralization.
  • Fulfilling the Organizing Function

    • Decentralization: The location of decision making authority is relatively evenly dispersed across the company.
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