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Firms may prefer decentralization because it ensures efficiency by making sure that managers closest to the local information make decisions and in a more timely fashion; that their taking responsibility frees upper management for long term strategics rather than day-to-day decision-making; that managers have hands on training to prepare them ...
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 among managers, creating a more lateral flow of information.
One of the most well known examples of a "natural" decentralized system is one used by certain insect colonies. In these insect colonies, control is distributed among the homogeneous biological agents who act upon local information and local interactions to collectively create complex, global behaviour.
Diagrams of systems in various degrees of centralisation. From left to right: centralisation, decentralisation, distribution, and distributed decentralisation. ...
Holacracy is a method of decentralized management and organizational governance, which claims to distribute authority and decision-making through a holarchy of self-organizing teams rather than being vested in a management hierarchy. [1] [2] Holacracy has been adopted by for-profit and non-profit organizations in several countries. [3]
Decentralized economic planning is a planning process that starts at the user-level in a bottom-up flow of information. Decentralized planning often appears as a complement to the idea of socialist self-management , most notably by democratic socialists and libertarian socialists .
It quoted one definition: Decentralization, or decentralising governance, refers to the restructuring or reorganisation of authority so that there is a system of co-responsibility between institutions of governance at the central, regional and local levels according to the principle of subsidiarity, thus increasing the overall quality and ...
The term new public management (NPM) expresses the idea that the cumulative flow of policy decisions over the past twenty years has amounted to a substantial shift in the governance and management of the "state sector" in the United Kingdom, New Zealand, Australia, Scandinavia, North America, and Latin America. [8]