Decentralized decision-making is how the authority

Definition

Decentralized decision-making is how the authority to make decisions within an organization is distributed throughout a larger group. Usually, the top-level leaders hold all the decision making authority. In a decentralized decision-making system, such authority is distributed to all levels of the organizational structure.

Summary

The article is based on the research carried out by Bakonyi (2018). It focuses on what approach a business should use in times of crisis in making decisions. The debate is on the advantages and disadvantages of centralization and decentralization of decision-making in times of crisis. Bakonyi Zoltan is a Ph.D. holder and Senior Expert in Strategic Management. He works at the Centre for Economic and Regional Studies, Hungarian Academy of Sciences, Budapest, Hungary. It makes him a credible source for information about business and economics. The article is done by carrying out research using a qualitative methodology. The author interviews senior managers in various manufacturing companies. The findings show that most businesses adopt a centralized decision-making system in times of crisis. The belief is that it is quicker to make decisions when power is concentrated on a smaller group. Centralized decision making in times of crisis creates efficiency and has short term advantages to the business. Thus, the article provides a rationale for the centralization of decision-making in times of the recession despite its drawbacks on innovation and flexibility in the long run.

Discussion

Most businesses focus on the decentralization of decision-making to increase flexibility and innovation within an organization. Decentralized decision making gives every individual within the organization a chance to contribute to changes within the organization. However, businesses do not focus on whether the decentralization approach should be used in crisis times when the organization needs to make decisions quickly. The research by Bakonyi (2018) shows how centralization could be the key to creating organizational efficiency in times of recession. Decision-making is critical in any business, and the time spent on a decision matters. In a crisis, businesses do not have the luxury of times hence the appropriateness of the approach. The decentralized decision-making system allows top-level majors to focus on petty issues in the organization and focus on major decisions.

The article relates to the decentralization of decision making in that it realizes the importance of the concept. The author acknowledges that decentralization leads to innovation and creativity within the organization. The second article by Natrajan et al. (2019) also discusses how the concept of decentralization acts as a way of employee empowerment. Their article is focused on how employers achieve better job performance by engaging their employees. The process of engaging employees in the matter of businesses is decentralization. It creates a sense of belonging and empowerment, and it gives employees a sense of being an essential part of the business. The authors justify how an engaged employee feels like part of the organizational objectives. Decentralized decision making in any organization will mean that employees also have to be involved in the process. The authority lies in any individual that is beneficial to the organization. Therefore, both articles support the decentralized decision-making process in that they cite the many benefits that it could have on the performance and overall attainment of the organization’s objectives. The earlier article by Bakonyi (2018) suggests that a centralized decision process is more effective in times of crisis. In such a decision-making process, only a few individuals are the top management are tasked with making organizational decisions, thus saving on valuable time that would otherwise be costly for a business.

Biblical Integration

The Bible talks about decision-making and how human beings should come to conclusive decisions. As Christians and business leaders, decision making comes at the core of everything. The Bible has a more centralized decision-making system where Christians should rely on the Holy Spirit and God when coming up with life decisions. In the book of Philippians 4:6-7, the Bible states that “Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus.” The verse shows that human beings should not be worried about anything or make decisions on anything and trust in God to help direct their thoughts and processes. God is the Supreme Being that controls the mind, body, and soul of the human being and their thoughts and decisions.

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