Centralized Vs. Decentralized Operations // Management Reporting // Elvy Razonales, CPA

Management must accomplish its objectives by working through people. Presidents of companies could not possibly execute all of their company’s strategies alone and therefore must rely on other people. The process of delegating the decision-making authority throughout an organization is called decentralization.

Before designing strategic performance measurement systems, top managers determine when delegation of responsibility (called decentralization) is desirable.

The strategic benefit of the centralized approach is that top management retains control over key business functions, ensuring a desired level of performance.

Additionally, with top management involvement in most decisions, the expertise of top management can be effectively coordinated.

.
.
.
.
.
#financial #management #financialmanagement #OnlineEducation #Philippines #OBS #Streaming #tax #taxes #accounting #business #taxseason #finance #incometax #accountant #smallbusiness #entrepreneur #bookkeeping #taxpreparer #gst #money #taxrefund #taxprofessional #taxreturn #pajak #payroll #taxpreparation #audit #cpa #taxplanning #taxconsultant #covid #irs #businessowner #akuntansi #accountants

[maryfeflores]

Understanding the structures of both centralized and decentralized organizations lays the groundwork for comprehending the differences in management accounting practices employed by the organizations.

[christieannf.hernandez]

Centralization makes sense when scale or standardization is a major factor when it comes to costs, when specialized production capabilities are necessary, or when manufacturing strategy is a strong component of business strategy. Alternatively, decentralization is more appropriate when different products for individual markets are needed or when the company must respond quickly to changing or regionally differentiated customer needs

[lysjyc]

I have learned the difference between decentralized and centralized in the aspect of decision making. In decentralized operations, middle and low-level managers have the power. Meanwhile, in centralized operations, only a few upper management members have decision-making power.

[coleenjamison]

Decentralize approach of management operation will be preferred to adopt since management can concentrate itself to the task at hand.

[kimespino]

Employees require specific job descriptions in order to be held responsible for its actions; by minimizing uncertainty, employees can gain skills to better do their jobs, and managers can monitor performance more accurately.

[JirehTruthCBARON]

Decentralization is a type of organizational structure in which daily operations and decision-making responsibilities are delegated by top management to middle and lower-level mangers. This frees up top management to focus more on major decisions.

[lovedemseyah]

Decentralization benefits include better, more timely decisions and increased motivation. Because it reduces the burden on top management, there is less management firefighting and day-to-day problem solving. It also makes diversification and the development of junior management easier.

[richa-lejapitana]

In centralized approach, the top management retains control over critical business functions, ensuring that the required level of performance is achieved while the primary concept of decentralized approach is to delegate authority and responsibility to people who are closest to the stakeholders and have a pertinent information which is why, many businesses preferred to have this approach.

[leicablas]

Decisions at lower levels in the firm must be made on a timely basis using the information at hand to make the firm more responsive to the customer.

[pearljoyillustrisimo]

My key takeaways for this topic are the following:

1. In decentralized, all level were involved in decision making while in centralized only upper level were involved in decision making.

2. Decentralize means functions were already delegated. They know every small details of each part of the company.

3. An advantage if we choose decentralize operation because in this type of operation the work is less, it is self-sufficient, and of course faster when it comes in decision making.

4. Decentralize and centralize can be mixed or combine.

5. There are cons and prons from decentralized and centralized operation that can be adopt in one company.

[laicaamos]

Strategic planning, goal formulation, budgeting, and talent deployment are often handled by a single senior leader or leadership team in centralized businesses. Decentralized organizations, on the other hand, distribute formal decision-making power between numerous persons or teams.

[dominiquecababasay]

Centralization is the systematic and continuous concentration of authority at strategic points. On the other hand, decentralization is the methodical delegation of authority within an institution.

[jocedhelg.agreda]

Centralization can bring with it many benefits cost savings, standardization, and sharing of best practices. In centralized organizations, strategic planning, goal setting, budgeting, and talent deployment are typically conducted by a single, senior leader or leadership team. In contrast, in decentralized organizations, formal decision-making power is distributed across multiple individuals or teams.

[gilmaelacaba]

Delegation of each responsibility to a specific member of an organization who has proper and focused knowledge to what he is assigned to is importand in order to come up with a relevant information to the users.

[angelbanderado]

The key idea behind a decentralized approach is giving authority and responsibility to those who know best.

[shekalair]

centralized “tatanda ng mabilis” have all the work on your back from purchasing, hiring and etc. you really need to prioritize these things.

[marycrisermosillas]

As being discussed decentralized operations is more on managing people. The frontliners must know the small details of each part of the company. Presidents could not establish properly alone but he needs professionals who are experts in specific areas. Moreover decentralized work as a team or functioning as a group they can’t work alone. On the other hand centralized operations is good or appropriate for the sole proprietorship kind of business and it is not applicable to a bigger company. This is less expensive because it doesn’t need lot of people to be delegated. It is more on standardization and upper management usually have an overworked. Team members are powerless because they don’t have the authority to decide.

[johnelgortayo]

The difference between centralization and decentralization is my main takeaway from tonight's discussion. Decentralization achieves its goals by working through people and delegating authority and responsibility to those who know the most, whereas centralization is a type of organizational structure in which top management has decision-making authority. I also learned the advantages and disadvantages of the two, and that the best framework for a business is determined by the overall business objectives, resources, and the type of business a person operates.

[jaybezgrabato]

Decentralization is a type of organizational structure in which daily operations and decision-making responsibilities are delegated by top management to middle and lower-level mangers.

[jillanrossalcantara]

A company cannot stand alone without it’s employees. A good leader must know how to allocate resources such as money, manpower and etc. A company must determine if a decentralized or centralized approach is better fit for them.