Gore & Associates case Research Paper Example | Topics and Well Written Essays - 2000 words

Gore & Associates case - Research Paper Example In this case, the organization is divided into decision-making entities and affording them powers to undertake routine forms of decisions with respect to the operations of those entities (Grindle, 2007). This paper will look into the W. L. Gore & Associates radical approach of devolving decision making to the lowest levels of its organization. In decentralization, methodical efforts are made to give power to subordinate levels. The delegation of power in decentralization is not from one person to another but to each entity in an establishment (Grindle, 2007). An organization is deemed extremely decentralized, when entrustment is company-wide within all divisions and functions. Decentralization differ from centralization since in centralization, decision-making power rests on one individual only. Additionally, centralization is a type of traditional supervision in India whereas decentralization is a standard practice in professional management (Burton & Obel, 1995). Everything, which attempts to upsurge the significance of subordinate’s duties is decentralization and everything, which reduces it is centralization (Burton & Obel, 1995). ... Therefore, devolution with respect to office may comprise departmentation of operations. When power is dispersed, devolution is present (Burton & Obel, 1995). The requirement for devolution is manipulated when the company develops in its scope, which demands broadening of office operations. Devolution ensues during decision formulating of routine kind but if verdicts are crucial, the power is not dispersed (Burton & Obel, 1995). The political factors technological development and accessibility of administrators also influence the extent of devolution. Devolution does not occur in its wholesome sense. There exists a combination of the two since some operations are integrated and some are devolved (Grindle, 2007). What are the strengths of this approach? Decentralization aids to enhance the quality of decision-making at top-level management. Decentralization of power among subordinates at each level within a firm releases the top management the excessive responsibilities saving them ti me to devote to more crucial and long-term glitches (Burton & Obel, 1995). This enhances the quality of top management decisions with respect to such problems. Devolution, therefore, provides top managers with chances of looking into other new methods of improving their companies by engaging in managerial forums (Grindle, 2007). The approach of devolving power to the lower levels in an organization accelerates diversification of operations in an organization. It is a subject of common knowledge that a company with departments upon the footing of its products accelerates diversification of market or products even when the power is centralized. Decentralization takes this procedure a footstep further.