Feb 10, 2016 · Experts are tested by Chegg as specialists in their subject area. We review their content and use your feedback to keep the quality high. 100% (1 rating) Answer: The reason for the decentralization is that technology makes the information a …. View the full answer.
That is why decentralization happens as the task is segregated among all the employees giving less importance to hierchies. Yes it can also be used to greater centralization when in IT itself hierchies are defined and data is accessible on the basis of the hierchies.
The application of advance IT leads to great decentralization since it increases efficiency and allows for delegation of tasks. For example through the use of advanced IT, it's possible for the subordinates and the lower level managers to easily access information that allows them to make informed decisions.
Utilization of advanced IT will lead an organization for decentralization. As every task or a project can be breakdown and distributed to every individual. It can sta … View the full answer Previous question Next question
Motivation of Subordinates. Decentralization improves the level of job satisfaction as well as employee morale, especially amongst the lower level managers. Furthermore, it strives to satisfy the varying requirements for participation, independence, and status. Decentralization also promotes a spirit of group cohesiveness and spirit.
Another important pointer in the advantages and disadvantages of decentralization is that decisions are taken and executed by authorized personnel. This , in turn, results in faster and accurate decisions which are well aware of the real scenario.
Decentralization unleashes the fullest potential of the organization and can react easily to area-specific requirements.
Satisfaction of Human needs. Decentralization serves as an important tool for satisfying our basic need of independence, power, prestige, and status. A cadre of satisfied manager is build up by this satisfaction as they feel responsible towards the company’s betterment.
This, in turn, leads to greater efficiency in supervision. Performance evaluation of each decentralized unit helps in exercising adequate control.
What is decentralization? Decentralization refers to a specific form of organizational structure where the top management delegates decision-making responsibilities and daily operations to middle and lower subordinates. The top management can thus concentrate on taking major decisions with greater time abundance.
Decentralized product lines need to be adequately broad so that autonomous units can flourish within the same. This might not be of much help in small business houses having narrow product lines. Lower levels in the organization also lack competent managers thus adding to the difficulty quotient.
In a centralized network, all users are connected to a central server that stores complete network data and user information. On the contrary, a decentralized network has several peer-to-peer user groups wherein each group has its separate server that stores data and information relevant to only that particular group.
Decentralization is a practical approach when different departments in a company have different IT needs and strategies. It allows each business unit to maintain a separate server and choose hardware and applications based on individual needs.
There are many benefits of adopting this type of structure. A centralized IT network can: 1. Lower your hardware expenses. You can reduce hardware costs by keeping all servers and networking equipment in one place. When distributed across locations, extra or duplicate equipment is needed. In a nutshell, increasing redundancy increases costs.
Industry-specific regulations, such as HIPAA for healthcare providers and the Sarbanes-Oxley Act for financial services, require varying degrees of IT and database centralization, usually for data security reasons.
1. The ability to tailor IT selection and configuration. When individual departments have IT decision-making power, they can choose and configure IT resources as per their specific needs. The decision-making process is quick and doesn’t require a chain of approvals.
The concept of a decentralized network was introduced by researcher Paul Baran in 1964 to help improve telecommunications infrastructure. During the Cold War, researchers were looking for an alternative to the traditional, centralized network structure.
There isn’t one answer to the question whether your organization’s IT structure should be centralized or decentralized. That’s because businesses rarely commit to one of these models. In reality, centralized and decentralized IT structures are two ends of a spectrum, and most organizations, including yours, are somewhere in the middle.