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Metrics In Organizational Centralization And Decentralization

Author

Listed:
  • Vladimir Modrak

    (Faculty of Manufacturing Technologies, TUKE)

  • Sorin Mihai Radu

    (University of Petrosani)

  • Jan Modrak

    (Faculty of Manufacturing Technologies, TUKE)

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.

Suggested Citation

  • Vladimir Modrak & Sorin Mihai Radu & Jan Modrak, 2014. "Metrics In Organizational Centralization And Decentralization," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 10(2), pages 104-114, December.
    • Handle: RePEc:pcz:journl:v:10:y:2014:i:2:p:104-114
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    References listed on IDEAS

    as
    1. Gert Sabidussi, 1966. "The centrality index of a graph," Psychometrika, Springer;The Psychometric Society, vol. 31(4), pages 581-603, December.
    2. Hammer, Michael & Champy, James, 1993. "Reengineering the corporation: A manifesto for business revolution," Business Horizons, Elsevier, vol. 36(5), pages 90-91.
    3. Nicolaj Siggelkow & Daniel A. Levinthal, 2003. "Temporarily Divide to Conquer: Centralized, Decentralized, and Reintegrated Organizational Approaches to Exploration and Adaptation," Organization Science, INFORMS, vol. 14(6), pages 650-669, December.
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    Cited by:

    1. Slavomir Bednar & Jan Modrak, 2015. "Product Variety Management As A Tool For Successful Mass Customized Product Structure," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 12(1), pages 16-25, DEcember.
    2. Voinea Dan Valeriu & Opran Elena Rodica & Busu Oprea Valentin & Vladutescu Stefan, 2015. "Embarrassments In Managerial Communication," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 11(2), pages 171-180, June.

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