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Why Decentralization?
In centralization, a limited amount of authority
is delegated. In decentralization, a significant amount of authority is
delegated to lower levels. Each form has its advantages and disadvantages
and is affected by a number of factors, such as size of organization and the
amount of geographic dispersion. If the organization is very large,
diversified or geographically dispersed, the limitations of expertise and
personal resources will generally lead to decentralization of authority to
the heads of these different businesses. Innovative enterprises, where speed
and adaptability to change are characteristics of the business, tend towards
decentralization.
Why Delegate?
At a certain point, there are just too many
facets to running a successful business to continue doing it alone. In an
increasingly complex business environment, with all the trends affecting
business today, such as globalization, the information technology explosion,
strategic alliances,
increased mergers and
acquisitions, heightened competition, and higher expectations of nearly
every customer, it just isn't possible to still be that one person in
control of everything. Bringing in others to manage is an absolute necessity
for survival now.
Owners and managers should concentrate on the
activities they do that bring the most value to their organization. You must
perform only "essential activities" that give the company its
competitive
advantage over other companies in the industry. Learn to
do less and manage more.
The delegation task is in finding the right
persons and giving them the right work. The sheer volume of management
responsibilities necessitates delegation. Always drop unnecessary work
altogether; concentrate only on the tasks that nobody else can do. Necessary
tasks that can be done by others should be delegated.
Often the need to delegate is sparked by rapid
business expansion,
particularly as a result of acquisition.
How to Delegate?
Resist the temptation to keep tasks to yourself
as a means of control or a demonstration of power. Be a
leader rather than a
mentor.
The first step is to recognize when it is time
to delegate. Then determine what to delegate, how, and to whom.
To help you define and allot tasks, including
your own, ask yourself three of Peter Drucker's questions:
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What am I doing that does not need to be done at
all?
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What am I doing that can be done by somebody
else?
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What am I doing that only I can do?
Delegating responsibilities to those you trust
would free you to focus on what you are best at. Promoting from within is a
valuable tool for retaining and motivating your people. However, if current
employees don't have the skills your business needs, don't hesitate to hire
someone who does. It often makes sense to search for someone who can
immediately add value to your management team as well as transfer some of
his or her skills to others in your organization.
The Secret of Successful Delegation
Explain the task, tell your people what should
be done, but don't tell them how. "This is the secret of successful
delegation. When you tell somebody exactly how you want a task carried out,
it removes any creativity. It becomes completely boring, there is no
challenge and they do not have to develop in any capacity whatsoever3".
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