Advantages Of Decentralizing Decision Making Authority

People make decisions every day and all of the decisions have consequences which can be big or small. These decisions can be about what clothes to put on in the morning or whether or not to make the bed before work. Admiral Bill McRaven said, â€Å"If you make your bed every morning you will have accomplished the first task of the day. It will give you a small sense of pride and it will encourage you to do another task and another and another.† Making decisions is an important aspect of an organization success and how the organization makes these decisions can be crucial to its success or failure. This essay will discuss the advantages and disadvantages of decentralizing decision-making authority in an organization. When an organization decentralizes its decision-making authority it gives more power to lower level managers and potentially non-management staff. According to George and Jones, â€Å"When lower-level managers have the responsibility to make important decisions, the problems of slow and distorted communication are kept to a minimum.† (p. 484). When lower level managers have more authority to make decisions within in their business unit they can become more effective. For example, individual departments may be allowed to make decisions regarding equipment and inventory up to certain dollar amount without vice president approval. Vice presidents can be very busy so this allows the department to have more flexibility and possibly less downtime by cutting out the approvalShow MoreRelatedThe Issue Of Traffic Congestion Essay1634 Words   |  7 Pagesrude gestures, verbal insults, deliberately driving in an unsafe or threatening manner or making threats, road rage can lead to alter cation, assaults and collisions which can result in injuries and even deaths. 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