Even the most well-developed strategy will fail if it isn’t effectively implemented. It is essential that...
Even the most well-developed strategy will fail if it isn’t effectively implemented. It is essential that organizations have the proper fit between their structure and strategy. Explain the difference between centralized and decentralized organization structures. Which one is more associated with sound strategy execution? Why?
Homework Answers
Centralized and decentralised organization are different in their power, heiraechy and communication. Centralized structure need approval fr the central team even for small level updates while decentralised have quick decision support capability and providing apporvals based on the power assigned to regional teams. Flow of communications is from top leadership to bottom in centralized while decentralised is more of flat and people can reach out to people irrespective of their heirarchy. Decentralised beleves in people collaborative effort while centralized systems are more into autocratic type.
Decentralisation is more people centric and they incorporate their views into strategy building. Thus for strategic building and innovative steps organization with decentralised structure has more possibilities. Strategic execution requires support from different teams and different levels of people. This also include change management. Thus decentralised structure with better visibility can do well in such strategic formulation and execution.
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