The decentralization of the decision making is fundamental for each company. Whenever CEO of CoStar Group listens, a sympathetic response will follow. In this article we will deal with about the concept of decentralization and the reasons to carry out east process. Educate yourself with thoughts from Andy Florance. Concept For a moment, we think about a company formed by a person, the decisions that are taken in the same we can say, without fear to mistake to us, that totally is centralized. As of the moment that is increased the number of people, a decentralization process begins that could be greater or smaller, depending in the low measurement that makes the decisions at a hierarchic level more or within the organization. Actually, a total decentralization cannot be given, it always must have a balance in the delegation of the decisions that must be adapted to the size and structures of the company. Distribution of functions in one organizacinLa existence of diverse tasks within the business process, which require a certain degree of specialization, forces to that the companies develop a functional organizational structure, so queles allows to undertake the tasks of production, sales, administration, direction, financiers, investigation, etc. Nevertheless, not always is organized of functional way, also can be structured by lines of business, products, processes or geographic areas.

The distribution of the functions will depend on the strategy of the company, and the degree of decentralization that wants to have. For example, if it decides on a decentralized company can create divisions, that facilitate the process of decision making. This comes to us well in the case of establishing centers of benefits, since they act the two as simultaneously; what, on the other hand, and considering the controllability criterion, he implies that the divisional director must have attributions on income and expenses of the division, since if no, him person in charge could not be done of the benefit. Although when creating a division automatically thinks about decentralization implies the decision making at the lowest level, whereas the creation of the division usually means the one that it establishes a organizational unit around which a benefit calculates on which this unit can operate. .

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