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METRICS IN ORGANIZATIONAL CENTRALIZATION AND DECENTRALIZATION

Vladimir Modrak (), Mihai Radu Sorin and Jan Modrak
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Vladimir Modrak: Faculty of Manufacturing Technologies, TUKE
Mihai Radu Sorin: University of Petrosani
Jan Modrak: Faculty of Manufacturing Technologies, TUKE

Polish Journal of Management Studies, 2014, vol. 10, issue 2, 104-114

Abstract: Continual improvement of business processes requires, apart from other efforts, to develop effective metrics, by which managers and/or process engineers will be able to manage the organization's growth. Obviously, there are plenty measures that can be taken to optimize processes. Once effective metrics are identified, the assessment team should do what works best for them. In this paper, an organizational “centralization” or “decentralization” is a matter of interest. The dichotomous term “centralization/ decentralization” itself is somewhat inappropriate in the sense that an organizational centralization is not a goal, but rather a means to help us plan and to set goals. Naturally, approaches to the “centralization/ decentralization” measures depend on many factors. The paper's scope is explicitly limited to the vertical decentralization that is concerned with the delegation of decision-making power down the chain of authority. Subsequently, we are also interested to explore network centralization issues.

Date: 2014
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Citations: View citations in EconPapers (2)

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