Effects of Decentralization on Attainment of Firms Objectives

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Table of Contents

Introduction
Background of the study
Statement of the problem
Objectives of the study
Research questions
Significance of the study
Limitation of the study
Scope of the study
Theoretical frame work
References

Introduction

The part introduces the background of the study, objectives of the study, scope and theoretical frame work.

Background of the study

Decentralization as form of management system plays a big role towards attainment of goals and objectives of any institution or organization, hence the importance or need for this study.

Decentralization is the means by which power ad authority is dispersed to ensure easy management process.

Evanrich (1994) defines decentralization as the process of distribution of authority throughout the organization. It delegates an organization member, actually a manager the right manner to make decisions without obtaining approval from the higher level manager.

Authority to identify problems or issues and recommend solutions is also delegated. Decentralization is therefore a means by which authority to make decision is shared with all members in the organization. In the study we will see how Barclays bank has decentralized its activities.

According to Sagimo (2002, p. 451) decentralization is where authority is distributed to more people in an organization. A liberal policy of delegation of authority allows this to be practiced. The delegation can be in two ways, functional where one particular department is declared autonomous and geographical where by an organization branch in different locality is autonomous. Generally, decentralization is the means of power and authority distribution used in many firms globally and therefore, there are many reasons as to why this form of authority distribution is used in firms (Sagimo 2002, p. 453).

Further, Crosby (1984) defines decentralization as the distribution of authority throughout the organization or held in the hands of a few. Decentralization therefore according to him is the distribution of authority throughout the organization. This delegates an organization (historically a manger) the right to make decision without obtaining approval from the higher-level manager. The authority to identify problems or issues and recommend solution is delegated as well. In the strictest sense, decentralization represents one end of a continuum in which authority to make decisions is shared with all members of an organization (Crosby 1994, p. 49).

Let us understand the statement of the problem in the study, in the study we will have to understand the question of how an organization is managed. There are many ways in which the organizations are managed. This will actually outline the problems that will be addressed in the study, because not any means can be applied as a way of organization management and suite the organization satisfaction. It is against this background that the study seeks to investigate the effects of decentralization to attainment of firm objectives.

Statement of the problem

The question of how an organization is managed will be addressed in the study and this will bring out the meaning of decentralization. Sincerely many organizations that do not decentralize their authority loose efficiency, slow decision making and employees are not empowered, therefore it is against this background that the study seeks to investigate more on effects of decentralization to attainment of firm’s objectives.

Objectives of the study

Now, let me discuss the objectives that the study will address. The main objective that will be discussed in the study is the investigation of the effects of decentralization to attainment of firm’s objectives. The other objectives that the study will consider are, to determine various structures of a decentralized firm, to find out how authority is dispersed throughout the organization and to determine how management system empowers employees (Crosby 1994, p. 36).

Research questions

The research questions acts as the directive for the study that will be undertaken. In this sense I have prepared the questions as follows; how effective is decentralization towards the attainment of firm’s objectives? What is the importance of organizational structures? How is authority dispersed to different people in an organization? Then, how does this management system empower employees?

After gathering such questions, the study will be conducted with an ease.

Significance of the study

The study will address the need for decentralization towards attaining the firm objective and will hence determine the importance of decentralization towards the attainment of firm’s objectives. It also outlines the benefits the organization and other related bodies get from it, i.e. apart from Barclays bank being the beneficiary of this study, many other organizations will benefit from the same. Other students undertaking other research in the same or related field will benefit from this study. The study can guide them or provide them relevant information.

Limitation of the study

In any study we expect limitations. The anticipated limitation in the study is the suspicion from the despondence, actually the researcher will have to explain the aim of undertaking the study so that the may find information from the resonance. Another anticipated problem is the time of bringing the study to completion. This will actually depend on different factors ranging from the researcher to the respondents (Crosby 1994, p. 35).

Scope of the study

This include the geographical area of the study, the study will take place within a division that contain many organizations of great nature that will facilitate the study. The research will take place in Barclays bank Brand ford city and the study will be centered on effects of decentralization to attainment of firm’s objectives.

Theoretical frame work

Administrative management theory, Weber and Fayol (1988) outlined principles of bureaucracy and administration that are related to managers today as when they were written at the turn of the centaury. Much of modern management research refines the principles to suit contemporary conditions. For example increasing of cross department teams and the empowerment of workers are issues that managers also faced at the turn of the centaury. Weber (1864, p. 23) went ahead and made a description between power (the authority to make people obey) and authority (where actions were voluntarily obeyed by those receiving them). In autonomy system, those in the subordinate role (workers) see the issuing of directives by those in the authority role (managers) as legitimate. The first model of exercising authority is based on the qualities of the leader (Weber 1864, p. 23)

The essence of the theoretical frame work is to bring the understanding of the study. This will further breakdown the information on decentralization in order to enhance the understanding of the theory in management.

References

Crosby, Jonathan (1994) management quality and competitiveness, New York: Mc Graw-Hill publishers.

Evancerich, Stephen (1994) management quality and competitiveness. New York: Mc Graw-Hill.

Sagimo, Edward (2002) Management Dynamics. East Africa publisher, Nairobi, Kampala, Dar es Salaam.

Weber, David (1864) Managers Management Theories. New York: Mc Graw-Hill publishers.

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