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ACC 5500 Managerial Accounting

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    The University of North Carolina at Pembroke


In this intensely competitive macro-environment, the management of a firm needs to generate maximum value from its human resources. In a decentralized organization, lower-level management and individual teams play a pivotal role in decision-making (Wooll, 2021). Both the lower-level management and individual team get the autonomy to take the necessary action to manage any challenges. After analyzing the concept of decentralization, it can be said that the firm's management needs to focus on using this tool effectively and decentralized the organization. In order to do that, the management needs to focus on communication across the organization. In order to promote more informed and rapid-fire decision-making, the management needs to create standard communication practices across the organization.

The management needs to emphasize organizational values and culture so that it can guide the employees while making the decisions. Including all employees will allow the management to get more insights into any issue. The firm's management needs to organize cross-training programs that will educate the employees about organizational culture, value, and management structure. The management must foster a teamwork culture to reduce conflicts among the employees and superior authority and develop mutual respect for colleagues. In order to motivate the employees, the management needs to support the employees to advance their carrier. Employees will acquire new skills, expertise, and knowledge, which will allow them to utilize career growth opportunities. It will allow the employees to focus on innovation (Gaspary, Moura & Wegner, 2020). By using these strategies, the firm's management can decentralize the organization.


Gaspary, E., Moura, G. L. D., & Wegner, D. (2020). How does the organisational structure influence a work environment for innovation?. International Journal of Entrepreneurship and Innovation Management, 24(2-3), 132-153.

Wooll, M. (2021). What are decentralized organizations?. Retrieved 13 February 2022.

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