What Are the Benefits of a Decentralized Business Structure?
In a centralized business structure, not all employees have the authority to make decisions, which can result in a lack of initiative. On the other hand, in decentralized management, decisions are often made by mid or low-level managers instead of exclusively by the head of the company.
4Corners Business Centers, a trusted conference room rental provider, discusses the advantages and challenges of a decentralized business structure.
Perks of Decentralized Management
Employees who are allowed to make decisions at many levels of the organization are more likely to be motivated in their jobs. They tend to find their work more interesting, resulting in less turnover. Allowing lower-level employees to accomplish tasks like ordering supplies and even hiring new employees without too much oversight gives the higher-ups time to focus on big-picture tasks, such as dealing with major clients.
Many companies or working on decentralizing their structure, with some choosing remote working arrangements or investing in a virtual office space. The number of co-working spaces in the country is expected to reach 26,000 by 2020. These workspaces provide organizations and employees with facilities, space and a business address. At 4Corners Business Centers, you can count on us for reliable virtual office solutions.
Challenges Faced by Decentralized Management
Some potential challenges are dealing with task repetition as well as wasted energy and effort when different employees have the power to make the same decisions. Your employees may be confused about who is ultimately responsible for which task and who has the right to make the final decisions. This can lead to miscommunication and potential conflict between employees or managers.
Communication is key to avoiding unnecessary work and ensuring all jobs are done on time. Clear leadership will also make streamlining tasks easier.
Whether you’re looking for meeting rooms or virtual office spaces, 4Corners Business Centers is here to help. Call us at (718) 280-5170 or fill out our contact form to learn more about our services. We work with clients in Brooklyn, NY.