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4 advantages of decentralized management for the business

4 advantages of decentralized management for the business

The technological advance of the last decade has transformed the market, which started to behave in a much more dynamic way. To ensure the competitiveness and survival of businesses in the midst of this revolution, many companies decided to invest in reducing bureaucracy and implementing more agile processes.

The model that offers this agility is decentralized management, which, through the flexibility of decision-making, allows the resolution of problems in less time and with more assertiveness.

Are you wondering about the challenges that your company faces? Learn about the benefits of decentralized management and how it can help you.

How decentralized management works?

In this management model, the operational process is less bureaucratic and responsibilities are distributed to hierarchical levels that are closer to the area in which the demand occurs. Thus, the decision power is diluted among many people, providing greater agility in the resolution of problems.

What is the difference in relation to centralized management?

If you are more familiar with centralized management – which concentrates decisions at the top of the hierarchy -, you will realize that this is the major difference between these two management models: the gap between the core of the demand and the agent with decision power, resulting in a delay in solving problems and a certain inefficiency in managing resources.

What are the advantages of decentralized management?

This management model offers many benefits; we have listed the 4 most important advantages below.

1. Agility and efficiency in decisions

In the decentralized model, decision-making is usually more agile and correct, as the team involved has greater knowledge of operational processes and competence to better assess the impact on the sector.

Problems can be solved in less time and don’t have to involve senior management. This autonomy is very welcome in emergency and unplanned situations, in which the response time is crucial.

2. Democratic leadership

The hierarchical flexibility in decision-making creates a work environment where there is a greater appreciation of individual skills and responsibilities. This is reflected in more engagement and availability of those involved, as it allows them to feel more valued.

The speed and assertiveness of decisions in the decentralized management model usually have a positive impact on productivity, given the high level of employee satisfaction.

3. Less staff turnover

Investing in the improvement and training of personnel has an important impact on the costs of a company, therefore, it is important to reduce employee turnover by engaging them.

Decentralized management allows the preservation of a motivated team of professionals, which helps in retaining talent, stimulates the formation of leaders and favors the implementation of a career plan.

4. Positive effect in the relationship with the customer

The agility and assertiveness in resolving demands have a positive impact on the relationship with customers. Given the perception that there is a team prepared and ready to answer questions and solve problems, the customer feels safe and well attended, becoming loyal.

In order to implement a decentralized management, it is necessary to have efficient management systems that can integrate the company sectors, automate tasks, and allow easy access to information. Once technical issues are resolved, it is necessary to modify the organizational structure and the perspective of employees. It may seem very complex, but with information and good planning, it is possible to implement these changes.

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