Where would you prefer to work? Centralized organizational structure or decentralized organizational structure. What are the consequences for both?

I prefer decentralization for it gives every employee or supervisor and or Manager to have the autonomy to make decisions based on the level of complexity of the decisions to be made. Decentralization is preferred for the following reasons;

• It is empowering especially if one is the employee.
• It makes it easier for one to accept responsibility for decisions made and the consequences thereof.
• It makes it easier for one to respond to changes that surround the decision making and with precision.
• It is motivating for one to be able to make decisions around and based on the areas they work on.

Contrary to the above;

• It is believed that strong leadership is best given from above thus need for centralization.
• Decentralized decisions may benefit the individual or unit at the expense of others.
• Standardized procedures can result in cost savings for the company not necessarily the individual.
• There is greater control of the organisation if decision making is centralized.

Centralized organizations can be extremely efficient regarding business decisions. Business owners typically develop the company’s mission and vision, and set objectives for managers and employees to follow when achieving these goals.

Decentralized organizations utilize individuals with a variety of expertise and knowledge for running various business operations. A broad-based management team helps to ensure the company has knowledgeable directors or managers to handle various types of business situations.

Centralized organizations can suffer from the negative effects of several layers of bureaucracy. These businesses often have multiple management layers stretching from the owner down to front-line operations. Business owners responsible for making every decision in the company may require more time to accomplish these tasks, which can result in sluggish business operations.

Decentralized organizations can struggle with multiple individuals having different opinions on a particular business decision. As such, these businesses can face difficulties trying to get everyone on the same page when making decisions

Good morning Yousef and thank you for this opportunity.

Along a years career I have quite always worked as a 'one man band' both in centralized and decentralized organizational structures (because an easily recognizable high personal integrity and professional reliability).

Said that, as a general 'rule of thumb' (and as per common sense :), I may even agree with the analysis of Patrick Olson. However, what makes the real difference is the so-called 'individual/human factor'.

For example, in the presence of a high level of organizational excellence you may find in both centralized and decentalized structures people acting as 'an ensemble of re-united soloists/superstars' (so everyone knows perfectly all do's and dont's never interfering each others, always concurring for a 'common wealth').

On the other hand, in both centralized and decentralized structures there always is a certain amount of 'crazy' and highly unpredictable units that you may not keep under full control.

In my opinion (and as per History lessons), the real problem is what role these units do have in the overall hierarchy, no matter the level of structural centralization :)

I hope this helps.   

Its depends which organization sector its.A public company or government are most of the time centralized.Some of the professions such as Hospitals ,Law firm are centralized with a bit of decentralized .A centralized organization doesn't mean always same work .It follows task delegated from Apex only.Whereas most of firms such organization which follow divisional work or functional tasks use decentralized approach. Decentrazlied motivate staff ,delegates authority and feedback

I for sure would like to work with a centralized organization. Here you have the security from the center as well as someone can here your views. Manpower shuffle is also an additional asset. In a decentralized organizational structure you can be suppressed and also favoritism works.