A centralized organization has two basic steps, transform business to be more efficient in order

to maximize profitability and elect an executive, who coordinates with the leadership team.
Typically, the business unit, division or city within the organization, is made up of multiple
organizational levels. Distributed organization is a hierarchy decision-making structure where
all decision-making decisions and processes are handled at the lower levels of the organization
and are adopted for the rest of the organization. The lower levels make subordinate decisions,
which are implemented on the upper levels. The organizational structure is integrated through
structures of middle management in-between the decision-making levels where all the
decisions are implemented. when leaders effectively regulate the self and the structure and
prevent competition for subordinate tasks, the organization is most likely to thrive. (Stein, M.
K. 2019)

It is not possible to conduct an uncooperative organization as this would be against its spirit
and was reprehensible. It is very common for people who are working under a centralized
organization to lack coordination. In reality, the organization functions almost the way a human
team does in that it leads each member in the right direction. In most cases, it is not possible to
have a mutual governance between members. centralized organization is a collection of
hierarchical decision-making structures that frequently support and justify the decisions of
senior managers and others who derive their authority from the agency’s authority structure.
(Giannoccaro, I. 2018)

Decentralized management system is a mechanism by which individuals who need to

coordinate activities in areas of continuous development can do so. That is, in a decentralized
management system, decision making is closer to the persons involved. Whether a
decentralized management system will lead to higher productivity for those involved depends
on the strength of the decentralized control unit and whether it operates with a democratic or
authoritarian culture. middle and lower-level managers who are accountable to and answer to
the membership. (Giannoccaro, I. 2018)

Maintaining a decentralized structure is best for businesses that are fully active and transparent,
and where membership interests are an important element of corporate governance and
development. A well-developed mix of protocols and systems can facilitate decentralization.
In a decentralized organization, the steps to implement a new project are streamlined through
project management and informed by cost-benefit analysis. No single person decides and
executes decisions in a decentralized organization. Instead, decisions are delegated to a central
office, where appropriate, and the decentralized decision-making structure is implemented by
higher-level employees. (Stein, M. K. 2019)

References:

Gol, E. S., Avital, M., & Stein, M. K. (2019). Crowdwork Platforms: Juxtaposing Centralized
and Decentralized Governance. In The 27th European Conference on Information Systems
(ECIS) 2019European Conference on Information Systems. Association for Information
Systems. AIS Electronic Library (AISeL).

Giannoccaro, I. (2018). Centralized vs. decentralized supply chains: The importance of

decision maker's cognitive ability and resistance to change. Industrial Marketing Management,
73, 59-69.

Replies:

1. In a centralized organization the individuals involved are generally unaware of and

untrained in the tasks they are performing, and as such are unprepared to cope with
changing circumstances and business problems. Centralized systems are also prone to
failure, regardless of who manages the organization. If the leadership is poor and
unaware of the risks, problems will inevitably happen. Centralized organizations also
lack effective information flow. The organization may or may not have a hierarchy; the
decision-making structure is designed to enable a sole decision-maker to make all
important decisions. In a more open organization, a membership may make decisions
or make suggestions through a consensus system. Each member of the membership may
have his or her own individual goals and his or her own personal sense of what is good
for the group. However, all decisions must still be approved by the leader or their
designated representative. In an organization where most people report to a manager,
decentralized management can reduce conflicts of interest by removing decision-
making power from the hands of managers.
2. The model of centralized organization usually provides a centralized mechanism for
decision-making. If, however, all processes in the organization are left to individuals,
you can get a lot of corporatism with no strong central authority to help. It can also be
a lot of trouble for those who are forced to work in that environment. That said, if you
need an organization and you know that centralized organization can work, it's often
best to go that route. Open hierarchies are those in which all decisions are decided in
the highest level of a business, without any of the executives having any decision-
making authority. In open hierarchies, there is no one who actually makes decisions,
but rather a process of discussions, votes, and consensus-building at the bottom. Under
a decentralized structure, there is an emphasis on a department's core functions, which
may include the management of people, the planning and implementation of operations
and capital investment, and the maintenance and support of an internal network.