Article Evaluation on Decentralization

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Article Evaluation on Decentralization Main Idea The article seeks to analyze and explain the relationship between decentralization and company efficiency. The author, Selina Marina, believes that companies which delegate control have a higher chance of developing than those with a centralized systemCITATION Sel15 l 1033 (Selina, 2015). She proposes that family-owned businesses face managerial challenges because they are not willing to give power to strangers. The article compares the results of two other articles involving eight countries. More so, the article suggests that training, research, and innovation becomes part of the human resource duties for better results. The cultural background from some of these countries encourages centralization for prestige and power. Most of the companies with a decentralized system are involved in international trade or in specialized fields which require extensive knowledge. Decentralization offers economic advantages in terms of growth and development and depends on the management style established by the CEO. Relevance of the Article The article touches on an emerging trend in management especially for large scale companies. The ability to branch out geographically determines the success of any growing industry as well as individual firms. Thus, the article is significant for someone like me who deals with managerial issues. Most companies focus on increasing the profit margin and forget the internal structure and organizational culture. As Selina (2015) affirms, decentralization results in better efficiency from the results displayed on the article. The reason for this may vary depending on factors such as expertise, company

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