decentralized
World History
Management
(adjective)
Diffuse; having no center or several centers.
(adjective)
Dispersed rather than concentrated in a single, central location or authority.
(adjective)
A structure where business units operate autonomously and have greater decision-making power.
Business
(adjective)
not centralized; having no center or several centers
Examples of decentralized in the following topics:
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Decentralization
- Decentralization is the policy of delegating decision-making authority down to the lower levels in an organization.
- Decentralized organizations tend to utilize many channels of information flow, allowing for more open communication between group members.
- In a more decentralized organization, the top executives delegate much of their decision-making authority to lower tiers of the organizational structure.
- A major disadvantage to a decentralized organization is that departments can easily lose sight of the organization's common mission.
- Decentralized organizations tend to utilize many channels of information flow, allowing for more open communication between group members.
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Decentralizing Responsibility
- In decentralized structures, responsibility for decision making is broadly dispersed down to the lower levels of an organization.
- Decentralized organizations must be mindful of the possibility of running in too many different directions at once.
- This image illustrates a decentralized (often referred to as a "flat") organizational chart.
- The management structure in a decentralized organization changes from a top-down approach to more of a peer-to-peer approach.
- Compare and contrast centralization and decentralization of responsibility within the organizational hierarchy
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Characteristics of Organizational Structures
- Important characteristics of an organization's structure include span of control, departmentalization, centralization, and decentralization.
- Each of these structures provides different degrees of four common organizational elements: span of control, departmentalization, centralization, and decentralization.
- Decentralization occurs when decision-making authority is dispersed among the lower organizational levels.
- With decentralized authority, important decisions are made by middle-level and supervisory-level managers.
- This diagram compares visual representations of a centralized vs. decentralized organizational structure.
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Centralized versus decentralized organizations
- There are two communication models that are utilized—centralized and decentralized.
- Decentralized organizations tend to utilize many channels of information flow, allowing for more open communication between group members.
- One of the major advantages to decentralized communication is that problems and processes can be solved and changed in a timely manner.
- A major disadvantage to a decentralized organization is that departments can easily lose sight of the organization's common mission.
- So how does an owner begin to digest and pick between all the choices (function, product, process, project or matrix structure, flat versus tall, centralized versus decentralized) available when it comes to organizing a business?
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Control Theory
- Control Theory in sociology can either be classified as centralized, decentralized, or mixed.
- Decentralized control, or market control, is typically maintained through factors such as price, competition, or market share.
- An example of mixed control is clan control, which contains both centralized and decentralized control.
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Team Communication
- Communication patterns describe the flow of information within the group and can be described as centralized or decentralized.
- In contrast, decentralized communication means team members share and exchange information directly with each other and with the group.
- Most teams use a mix of the two approaches, choosing centralized communication for messages that are more complex, urgent, or time sensitive, and decentralized communication when discussion and idea generation are needed.
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Price Transparency
- Since bonds are traded in a decentralized, over-the-counter market dominated by dealers, there can be a lack of price transparency.
- Rather, in most developed bond markets such as the United States, Japan, and western Europe, bonds trade in decentralized, dealer-based, over-the-counter markets.
- In summary, since bonds are traded in a decentralized, over-the-counter market dominated by dealers, there is a lack of price transparency for bond markets.
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Structure of the Federal Reserve
- The Federal Reserve System (The Fed) was designed in order to maintain the central bank's independence and promote decentralized power.
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Appear as Many, Not as One
- Furthermore, by behaving in a decentralized manner, you avoid stimulating centralization of opposition.
- There's a difference between actually being decentralized and simply striving to appear that way.
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Introduction to Committers
- (Note that the commit access means something a bit different in decentralized version control systems, where anyone can set up a repository that is linked into the project, and give themselves commit access to that repository.
- Nevertheless, the concept of commit access still applies: "commit access" is shorthand for "the right to make changes to the code that will ship in the group's next release of the software. " In centralized version control systems, this means having direct commit access; in decentralized ones, it means having one's changes pulled into the main distribution by default.