MIT Professor Thomas W. Malone explains that "decentralization has three general benefits: (1) encourages motivation and creativity; (2) allows many minds to work simultaneously on the same problem; and (3) 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 information thereby allows for innovation in what is called Total Quality Management.
Posted on: Wed, 25 Sep 2013 06:34:11 +0000
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