Discussion of Decentralized Structure Organization

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I would prefer to work in an organization with a decentralized structure, largely due to the levels of freedom, flexibility, and creativity it provides in comparison to centralized structures. A decentralized organizational structure is one where authority and decision-making are spread out from top management to lower levels of management or even individual employees. Top management typically oversees strategic vision and major decisions, while lower-level management works and guides their respective projects and departments as fitting with the organizational objectives and vision (Vantrappen & Wirtz, 2017). The biggest preference for this type of structure is the employee autonomy, as these types of businesses typically empower their employees to have a greater voice, more decision-making power, and a sense of choice in the projects being worked on as well as the direction of the organization (Joseph, 2019). Some of the famous companies that have succeeded on this model include Google and Netflix, which are known for providing employees great flexibility and initiative in the company, but also expecting working results or output. However, the result typically leads to greater productivity and innovation among team members.

Another reason for working in a decentralized structure is the efficiency of both work and decision-making. Since there is not such a centralized vertical chain of command, for most decisions low and mid-level managers can make decisions and react quickly, without dealing with the bureaucracy and time-consuming structural limitations. Decentralized structure may come with its challenges such as having to manage expectations, discipline, and communications. Decision-making is delegated and close cooperation is required to avoid time-critical issues and confusion, which may be difficult to achieve without competent leadership and appropriate systems in place (Tsybulko, 2020). However, the payoffs are extensively beneficial and can be achieved as was demonstrated during the COVID-19 pandemic when companies were forced to decentralize with remote working conditions.