Question

In today’s volatile, uncertain, complex and ambiguous (VUCA) environment, organisations often decentralise decision making. Do organisations really benefit from decentralisation?

Maximum word limit: 500 words

Answer 1

Often companies adopt decentralised decision making. It gives the management more control over the organisation. Organisations really benefit from decentralisation. Some of the benefits are :

• Decentralization in the decision making reduces delays in information flow throughout the organisation
• Facilitates faster feedback for the decisions taken in the organisation, if there is decentralization
• Innovative solutions can be derived if there is decentralized decision making
• Use of more expertise is possible since all the employees participate in decision making
• Better employee participation is ensured. Each and every department is participating in decision making