The Need for Organisational Resilience - Chapter 4

Centralisation

Decentralisation

Hierarchy

The principle of centralisation is that key decisions should be taken at the

Decentralisation is where decision-making is devolved further down the

top of the organisational hierarchy. Senior managers, having the greatest

organisational hierarchy. It is assumed that at the ‘front-line’, people are most

knowledge of the environment and the ‘big-picture’, are best-placed to

sensitive to what is going on. Hence, decision power migrates to where a

decide on key issues of long-term strategy, planning, and resourcing.

strategy is enacted, to a tactical level. In contrast to a centralised way of

Control is from the top, and the mechanisms for that control come through

working, decentralisation implies more of a bottom-to-top flow of ideas and

the organisational systems and processes.

decision making. It does not mean that higher echelons of management are

not influential. They define a strategy, but allow it to be put into practice by

front-line employees.

Autonomy

The freedom to act and implement a policy or plan is defined and

Decentralisation is not an invitation for front-line employees to form their own

constrained by frameworks of rules and procedures. Those frameworks

organisational strategy. Plans are similarly conceived at the top. The

define boundaries of decision-making power. In addition to these

difference is in the execution of those plans. The superior tells his or her

boundaries, plans are conceived and broken down into instructions and

subordinates what to accomplish, but not how to accomplish it. In military

delegated to lower echelons of the organisation. In case subordinates are

terms, lower-level ranks are being provided with an intent, a vision of the

unable to carry out these instructions, issues are escalated up the

intended outcome, with less of a detailed breakdown of the specific tasks to

hierarchy. Plans – outlining what tasks have to be carried out and how to

carry out. Being compliant implies conformance to the intent, not to individual

accomplish them – can only be changed by those higher-up. Any change

tasks that may not fit the fluidity of the evolving situation.

to strategy will be converted into new instructions for subordinates to carry

out. This does not mean that staff at the ‘front line’ are not skilled

professionals, though. They need to be experienced enough to carry out

the task at hand.

Initiative

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