Business Activity: The Concept Of Decentralization in Businesses by @swaylee
Greetings Everyone,
Today I would be looking at a rather perculiar topic which is decentralization in our places of work, what it is all about, it's good sides and it's bad sides. I feel this post is a rather interesting one as whenever Decentralization comes into mind, the first thing that comes to mind is cryptocurrency but wait till the end of the post so I can change that thought. Stay tuned and have a good read.
Decentralization isn't a new thing to anyone even those who are below the age of 8 and might not have cell phones might have a little knowledge about it. Even from the name "DE" & "CENTRALIZATION", it is safe to say that a lay man could have a guess at what it's all about. Well without further ado ladies and gentlemen,
Decentralization in general terms involves the division and distribution of power to the lower members or constituents instead of all the power being vested on one central body. It doesn't necessarily mean there isn't a main head but the power and decision making is distributed.
A good example of decentralization in business is amongst foreign owned chain restaurants where their main branch is in their native country then they have different branches in different states under the management of different people hence they are Decentralized.
Advantages of Decentralization in Business
It reduces the work load which the higher executives have to go through. Normally the higher ups have alot of work on their hands with the whole business in the palm of their hands but with delegation, it can remove up to half or more than half of their work load which would enable them focus on some top objectives.
It enables for faster decision making. There is always that situation where the business would want to make a huge decision which would decide the fate of the business but they would have to seek permission from the higher ups which would delay decision making and time is of utmost importance. Decentralization would put an end to that.
It let's the lower workers act independently and enforce their innovative ideas so as to enable the business grow exponentially. Attimes the key to a successful business idea is to let the employees take charge and you would be surprised by what they would come up with.
It motivates the lower workers and the rest of the staff to work harder and increases their morale towards the business especially when they are part of the people making decisions for the business.
Increased profits from increased workmanship, innovative ideas and quicker decision making. It leads to the overall betterment of the business as a whole with an active team and smaller workers who know the business inside out in power.
Disadvantages of Decentralization in Business
It increases business costs. Due to the fact that there are alot of people in power, they would need higher salaries than the average workers hence instead of just one central body receiving the salary, many lower managers also receive more salaries thus the business costs would appreciate exponentially.
Numerous independent workers/managers who exercise power in their own specified unit would make them harder to be controlled by the higher ups.
The business could run at a loss if the individual managers are not capable enough to handle their autonomous units the right way. The workers who end up in said positions might end up doing the job haphazardly or might not be able to handle the positions well so they would start running the business down.
Decentralization in business can be stressful especially on the part of those training the lower members inorder to make them manager material. The training process might prove stressful because they would need to train each manager candidate to be specialized in their particular field of work.
Conclusion
As Entrepreneurs, there especially those with large companies that cut across parts of the region, there are times when we have to fall back on Decentralization inorder to ensure better running of the business especially if we have capable hands that can take the business to new heights
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All images used in this publication were made using Canva
| Post Name: | Business Activity: The Concept Of Decentralization in Businesses by @swaylee |
|---|---|
| Owner's name : | @swaylee |
| Business Address | Barnawa, Kaduna, Nigeria |
| About us | Link |
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Thank you very much for the information provided, with quite favorable points, in which investor members and steemians in general will be able to take advantage of this content and apply it as best for them.
You can support the community with a delegation, strengthening and teamwork is part of everyone.
Greetings.
Thank you for reviewing my post. I want to build my sp more than I assure you of a reasonable delegation
Decentralization in a business is not an easy thing to do.
Handover of authority to a second party must be done to someone who we think is capable and has a reliable attitude.
Must trust each other have a steadfast personality, honest, disciplined and trustworthy.
God willing, the business will be consolidated.
Thank you for all the information you share is always happy with each of your publications, we salute your every commitment.
Thank you for reading. I really gat to hand it to you, y'all are really versed in the world of business and I keep learning everyday. I never regret joining this community and I've learnt alot already
Hello @swaylee, a very interesting topic that offers us, letting us know many characteristics that currently every business must keep in mind in the centralization issue.
Greetings, thank you for being active within the community.
Alright but I registered as a student not yet working but here to post business stuff and learn