Advantages Of Decentralization In The Ford Company

Decentralization is the systematic delegation of authority or distribution of power to the lowest level executive in management. The bottom level management such as supervisor, unit manager, and divisional department managers have the enough power to make decisions without the involvement of higher authorities or top management.
According to Allen, “Decentralization refers to the systematic effort to delegate to the lowest level of authority except that which can be controlled and exercised at central points.”
However, the delegation or distribution of decision-making authority from top management to the bottom level management bring benefits to the Ford Company.
Benefits of decentralization to Ford Company is reduces the burden of the top management. Through decentralization the division managers or line managers will take action or perform tasks in other regional such as Europe, Asia and Australia. So, the Ford Company's top management relieves from operating details or routine work from those divisions. This help them to spend time on more important tasks or policies which help the growth of their company.
Second benefit of decentralization is more efficient decision-making. The lower level executive or divisional managers of Ford able to make decisions more efficiently or quickly through decentralization because they do not have

Decentralization also have some pitfalls which cause failure to the Ford Company. First disadvantage of decentralization is lead to problems of co-ordination of different divisions. All divisional or regional managers are independent to make decision, to work, and plan their tasks schedule. Every regional have different vision, mission, and standard which not meet the Ford Company’s standardization. This lead to problems of co-ordination because the standardised Ford’s policies and procedure not follow by the regional