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The mini-factory concept at FAVI, detailed in Cummings and Worley's Organizational Development and Change (2019), presents a decentralized approach where smaller units within the organization
The mini-factory concept at FAVI, detailed in Cummings and Worley's "Organizational Development and Change" (2019), presents a decentralized approach where smaller units within the organization operate semi-independently. This concept brings several strengths and weaknesses to the fore. The mini-factory approach enhances accountability by decentralizing decision-making, which empowers each unit to take greater responsibility for its performance. This can boost employee motivation and engagement. The increased flexibility of smaller units allows them to adapt quickly to changes in customer demands and market conditions, providing a competitive edge. Improved communication is another benefit, as fewer hierarchical levels mean more direct and efficient information flow, facilitating faster decision-making. Additionally, employee empowerment through increased autonomy can lead to higher job satisfaction and retention rates (Cummings & Worley, 2019). However, this approach also has its drawbacks. Coordination challenges arise as multiple mini factories operate semi-independently, making it difficult to ensure coherence with overall company goals. Resource duplication can lead to inefficiencies, with similar resources being used across different units. Resistance to change is a significant challenge, especially for employees and managers accustomed to traditional hierarchical structures. Lastly, performance variability among different mini factories can result in inconsistencies
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