> Is decentralization a flexible way of managing power?

When a company is in the process of expansion, the question always arises as to which management model it should follow, whether it be the centralized centralizedthe centralized model, which we discussed earlier, or the decentralized model.

It is true that, in order to choose a particular model, many questions arise, such as: Who will be responsible for decision making, proposing solutions, and innovations, but it is all part of the growth and the objectives to be achieved.  

In this order of ideas, and at a time of growth and expansion, is where companies must choose between a centralized structure, a decentralized organization, or a combination of both. Here is their definition and advantages. 

What is decentralization?

Decentralization as an administrative model seeks to transfer or delegate authority to other hierarchies, i.e., other departments or units of an organization so that they can make decisions and generate greater benefits.

However, when this model is applied in an organization, the day-to-day operations and decision-making power is delegated from the highest level of management to the middle and entry levels.

An organization with a decentralized model aims to have the organization's leadership focus on growth opportunities and long-term strategic decisions, rather than overseeing day-to-day tasks.

The advantages of this administrative model are as follows: 

• The training of lower hierarchies is increased.
• The department heads are the direct decision-makers, thus making better use of their time.
• Greater control over certain labor issues can be achieved 
• The training of subordinate personnel is increased.
• Access to global and diverse talent
• Happier teams
• Loyalty and commitment (or lower turnover)
• Less expenses in general

The decentralized organizational model encompasses different areas and has the capacity to boost the companies, as well as the personal and professional development of its collaborators. 

It is important, at the moment of choosing one of these models, to make an evaluation of the resources available, this will help to take better advantage of the situation. As everything has its pros and cons, the choice should always be made based on the values of the organization.

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