1. (Mt) – Decentralized Operations
View attached explanation and answer. Let me know if you have any
questions.1Decentralizing The Company’s Decision-Making
ActivitiesNameInstitutionCourseProfessorDate2Decentralizing The Company’s Decision-
Making ActivitiesTiller Components is headed by Sherry Smith, who also serves as
president and chiefexecutive officer. She started the company, and now it’s a major supplier
of parts and accessoriesfor vehicle manufacturers. Over 35 states are represented by the
firm’s manufacturing facilities.Smith is discovering that she is no longer able to control her
life and maintain her usual routine.As such, the management may need to decentralizing the
company’s decision-making activities.This decentralization has both benefits and
limitations. On one hand, to start, it improves thequality and timeliness of the judgments
that managers may make (Bertacchini, Dalle Nogare &Scuderi, 2018). Supervisors at lower
levels are better in tune with the everyday issues facingtheir departments because of their
direct involvement in them. As a result, they are moreequipped to adapt to local conditions
than their more senior rivals. Management at lower levelshave a closer working
relationship with both staff and customers, putting them in a primeposition to resolve
difficulties quickly and efficiently thanks to a lack of bureaucratic red tape.Second, it
reduces stress for upper-level administration. The decentralization of acompany relieves
the upper leadership of the responsibility of managing the day-to-dayactivities. They are
released from the burden of day-to-day issue solving, or “managementfirefighting.” This
allows upper-level management to concentrate on strategic tasks such as longterm
planning, engaging with key customers and suppliers, assessing investment
opportunities,determining appropriate levels of finance (Bertacchini, Dalle Nogare &
Scuderi, 2018). Finally,it encourages and enables middle and lower-level management.
Delegating decision-making tomiddle management increases their sense of agency and
drives them to work harder toward thecompany’s objectives. As a corollary,
decentralization and local control ultimately foster tighter,more connected subunits. By
having a voice in the decisions that affect their workgroups,3workers’ morale is boosted. On
the other hand, when authority is decentralized, managers incharge of different
departments are under more pressure than ever to maximize profits. Thismight cause
tensions to rise between different departments. The leaders of each departmentmight be
tempted to further their own interests at the expense of those of their
colleagues.Management and governance issues may also develop from the existence of such
“minicompanies” or “small empires” inside a larger organization. Secondly, work is repeated
2. byseveral employees when power is decentralized. Each department needs its own team of
expertsin areas like procurement, HR, and marketing if it is to function effectively as a
standaloneentity. Each department must thus maintain a large and expensive specialized
workforce. It is notalways easy to find qualified people to head up the many subsets of a
company. Individuals maymake different choices when they are given the leeway to do
what they want. As a businessexpands, it’s not uncommon for top-down directives to lose
their impact. Decentralization alsonecessitates training programs, which may be costly and
time-consuming.During decentralization, there are various functions which should remain
central for thecompany. Any activity that has a high frequency of occurrence or is
performed continuously bythe organization might be considered a “function” of the
organization and therefore be centralize.Typical business operations include information
technology, research and development. Therehas been a recent trend toward
“nontraditional” organizational structures as a means throughwhich companies may
provide their workers with more independence (Foss, Lyngsie & Zahra,2015). Not only does
this provide workers greater leeway in determining how and when they gettheir work
done, but it also helps them better understand the influence they have on theorganization
as a whole. There is no benefit to decentralization if it is not directed towardsomething
specific. Failed efforts at decentralization are often the result of poor lines
of4communication between upper and lower management, as well as a lack of defined roles
andresponsibilities for staff members.If Sherry Smith…
