Cons Of A Decentralized Office
When we speak about organizational structures, it helps us understand the hierarchy and work flow of a company. There are many kinds of organizational structures a company can choose, and one of them is decentralized office. In this kind of organizational structure, the responsibility for making decision is given to the employees by the management. The employees do not have to consult the top management for making routine decisions. While this kind of organizational structure has its advantages, there are some cons of a decentralized office. |
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A decentralized office does not allow for merging and integration of its different departments. This means that each department within a company ends up performing independently without consulting the other. Each department makes its own policies, rules, working practices and the way it functions. This can create a problem for the management as it will find it difficult to collate the tasks done by each department into organizational tasks. (See Reference 1)
It has also been observed that when a company has decentralized organizational structure, the mid level managers may not completely understand the goals and aims of the organization. This is primarily because the managers are busier achieving the goals set by their department heads. Hence, department heads are also responsible for ensuring that mid level managers understand the aims and goals of the organization. (See Reference 1)
As there is no one to supervise day to day performance, a decentralized office does not allow the establishment of a control mechanism. Hence, there is a possibility that some employees may end up becoming slack in their performance and this would result in a drop in the output. Furthermore, every employee is just interested in finishing the assigned work and pay no attention to the quality of the work. Hence, there is no way quality control measures can be adopted in a decentralized office. (See Reference 1)
Also, departmental targets may suffer in a decentralized office. When top management fixes departmental targets, the department head will be more concerned in achieving those targets than in increasing the profitability of the company. At the same time, since there is no monitoring procedure in place to supervise the departments, there could be some departments that do not achieve their targets. This would have an effect on the overall profitability and success of the company. (See Reference 1)
Unfortunately, decentralized offices limit the domain and scope of employees. Hence, they are unable to develop and implement new ideas that could benefit the company. So, it can be said that a decentralized office tends to pose an obstacle in the growth and progress of a company. (See Reference 1)
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Cons Of A Decentralized Office
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