Agree or Disagree and Why?

One of the most important functions of a business is the management hierarchy and the flow of decision making throughout the business.The two types of management covered in the chapter were centralized and decentralized organizations.Jiambalvo (2016), states that most firms are neither totally centralized nor totally decentralized.Due to that fact, there is no clear cut line of a centralized or decentralized organization; you have to look at the degree they are centralized or decentralized.If more decisions are delegated down, the company is decentralized; if more decisions are kept at the top, the company is centralized.The decision to decentralize depends on the firm's operations and upper management confidence in the subunit managers.In any large organization, delegation and decentralization at some point are required, because there is too much for one manager or CEO to do.The key is the companies talent management when it comes to picking the right person for the job at the right time and right place.The whole concept of decentralization depends on those managers to do the right thing in the best interest of the company.The advantages of decentralization are that those managers are on the front line and able to make on the spot decisions to improve operations.This advantage makes the subunits autonomous, and as long as everything is working well, a company can manage by exception and allow the subunit to operate without upper management inputs.The disadvantages come from when the subunit managers do not operate well and cause more problems then they can fix.This problem results in the upper management having to get involved after the fact and put more effort then if they are never decentralized in the beginning.I think that decentralized operations in most situations are preferable, but you need the right people for it to work properly.