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Decentralized decision-making GudangMovies21 Rebahinxxi LK21
Decentralized decision-making is any process where the decision-making authority is distributed throughout a larger group. It also connotes a higher authority given to lower level functionaries, executives, and workers. This can be in any organization of any size; it may be present in a governmental authority to a corporation. However, the context in which the term is used is generally that of larger organizations. This distribution of power, in effect, has far-reaching implications in the fields of management, organizational behavior, and government.
The decisions arising from a process of decentralized decision-making are the functional result of group intelligence and crowd wisdom. Decentralized decision-making also contributes to the core knowledge of group intelligence and crowd wisdom, often in a subconscious way à la Carl Jung's collective unconscious.
Decision theory is a method of deductive reasoning based on formal probability and deductive reasoning models. It is also studied in a specialized field of mathematics, wherein models are used to help make decisions in all human activities including the sciences and engineering. (See also Game theory, Uncertainty, Expectation maximization principle.)
History
Decentralization and centralization have been consistent themes throughout history pertaining to governmental authority and political theory. From the rise and fall of the Roman Empire, there have been periods of centralization and decentralization in societies worldwide. Almost any political movement, from the rise of city states in Roman times, to the later rise and downfall of feudal empires during the Middle Ages, to the rise of fascism in Germany prior to World War II, and to the late 20th century formation of the European Economic Union; the history of Europe has been one of cycles of centralization and decentralization.
MIT Professor Thomas W. Malone explains that "decentralization has three general benefits:
encourages motivation and creativity
allows many minds to work simultaneously on the same problem
accommodates flexibility and individualization
Decentralized decision-making, Malone says, tends to create less rigidity and flatter hierarchies in organizations. When upper management delegates decision-making responsibilities, there also exist wider spans of control among managers, creating a more lateral flow of information. Thus, there will be more bottom up directional information flow, allowing for more innovation and efficiency closer to the means of production. This increased flow of information thereby allows for innovation in what is called as Total quality management.
See also
Cointelligence
Collective intelligence
Crowd psychology
Crowd wisdom
Delphi method
Early adopter
Group intelligence
Groupthink
Herd instinct
Information cascade
Opinion leadership
Outline of management
Social networks
Sociocracy
References and further reading
Drucker, Peter F., Post-Capitalist Society. (1993) HarperBusiness, New York.
Gerstner Jr., Louis V., Who Says Elephants Can't Dance? Inside IBM's Historic Turnaround. (2002) HarperBusiness, New York.
Gladwell, Malcolm, The Tipping Point: How Little Things Can Make a Big Difference. (2002) Little, Brown & Co., Boston.
Kahneman, Daniel, & Tversky, Amos, Choices, Values, and Frames (2000) Cambridge University Press, Cambridge, United Kingdom.
Malone, Thomas W.,"Is 'Empowerment' Just a Fad? Control, Decision-Making, and Information Technology," Sloan Management Review 23: 38, no. 2 (1997).
Malone, Thomas W., The Future of Work: How the New Order of Business Will Shape Your Organization, Your Management Style, and Your Life. (2004) Harvard Business School Press, Cambridge, Massachusetts.
Trotter, Wilfred, Instincts of the Herd in Peace and War. (1915) Macmillan, New York.
Surowiecki, James, The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations. (2004) Little, Brown, Boston.
Sunstein, Cass, Infotopia: How Many Minds Produce Knowledge. (2006) Oxford University Press, Oxford, United Kingdom.
External links
https://www.npr.org/2004/07/31/3806781/james-suroweicki-and-the-wisdom-of-crowds
http://www.randomhouse.com/features/wisdomofcrowds/excerpt.html
https://web.archive.org/web/20070920020436/http://weblamp.princeton.edu/~psych/psychology/research/kahneman/
https://www.rand.org/pubs/occasional_papers/2005/RAND_OP153.pdf
http://www.infography.com/content/237200278899.html
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Decentralized Decision Making
When To Decentralize Decision-Making, and When Not To | PDF ...
A guide to decentralized decision-making - LogRocket Blog
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Decentralized Decision Making Advantages and Disadvantages ...
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What Is Decentralized Decision Making? 6 Ways It Benefits Managers And ...
The Benefits Of Decentralized Decision Making – Infinity-Economics
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What is Decentralized Decision Making? | GoCardless
What is Decentralized Decision Making? | GoCardless
What is Decentralized Decision Making? | GoCardless
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When to Decentralize Decision Making, and When Not To
Dec 26, 2017 · It’s common today for decision-making to be pushed down and out in the organization, toward the people who are closest to the front lines. The theory is that by decentralizing control, you can make...
Decentralized decision-making - Wikipedia
Decentralized decision-making is any process where the decision-making authority is distributed throughout a larger group. It also connotes a higher authority given to lower level functionaries, executives, and workers.
What Is Decentralized Decision Making? 6 Ways It Benefits ...
Aug 16, 2023 · Decentralized decision making is a process where decision-making power is distributed across different levels of the organization. In this style, decisions are made by the individuals or teams who have the most knowledge and expertise about the situation.
A guide to decentralized decision-making - LogRocket Blog
Mar 26, 2024 · Decentralized decision-making in agile frameworks such as SAFe allows employees or teams at different levels to make autonomous decisions, resulting in faster solutions, innovation, and agility. There are three main …
How To Succeed At Decentralized Decision-Making - Forbes
May 4, 2020 · Keys To A Decentralized Decision-Making Success. 1. Obtain and retain knowledge. 2. Create efficiencies throughout the organization. 3. Continually increase core competency activity. 4....
What is Decentralized Decision Making? - GoCardless
Decentralized decision making means just that — empowering employees to make more strategic and operational decisions on their own without managerial hand-holding. It may seem like ceding control. But properly implemented, it can actually make for a more responsive and agile company with an empowered and highly motivated workforce.
Decentralized Management: Definition & Examples | HR ... - AIHR
Decentralized management is an organizational structure where decision-making authority is distributed throughout an organization, rather than only at the top. Unlike centralized management, it allows all managers to make strategic and operational decisions on their individual teams and projects.
