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What is the primary goal of decentralized decision-making? |
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Answer» The primary goal of decentralized decision–making is to enable FASTER flow of value. Decentralized decision-making, Malone says, tends to create less rigidity and flatter hierarchies in organizations. When upper management delegates decision-making responsibilities, there also exist wider spans of control creating a more lateral flow of information. Thus there will be more bottom up DIRECTIONAL information flow, allowing for more INNOVATION and efficiency closer to the means of production. This increased flow of information thereby allows for innovation. Decentralization helps in breaking the chain of escalations and time LAG that impacts the value delivery. But one must always understand that everything cannot be decentralized, there are few decisions which are still handled by the management. Decentralizing decision-making reduces delays, improves product development flow and throughput, and facilitates faster feedback and more innovative solutions. |
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