A decentralized organizational structure means that each product line will require many

Iunctions and it
Iocuses on a particular business area in an independent Iashion. ThereIore, the IT is contained
within the subunit to provided dedicated specialized service to that area.
The pros oI a decentralized organization structure in a decentralized organization are:
1. The priorities are based on the needs oI products and processes reaching markets instead oI
priorities set by individual Iunctions. This leads to reduced time to market outcomes.
2. Communication among Iunctions are increased because multiple groups work together as a
team.
3. Sharing oI inIormation and knowledge across Iunctions are widely available and allows Ior
the staII to be knowledgeable about multiple aspects oI the organization.
The cons oI a decentralized organizational structure are:
1. There is limited upward career paths within the organization and this may cause a high turn-
over rate oI rotating new employees.
2. Due to the loss oI employees seeking advancement in their careers, there is a lack oI backup
personnel available Ior vacancies.
3. There is no continuity oI business practices, because everyone applies their own concepts to
the daily operations.
4. Fair evaluations oI perIormance by employees will be diIIicult due to the evaluations being
done by someone less experienced.

II there are centralized organization structure in a decentralized organization there is room Ior
upward mobility, clear career paths are set and training is provided. The managers are Iamiliar
with the jobs perIormed and can accurately evaluate the employees perIormance.




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