Crypto Academy Week 9 - Homework Post for @yousafharoonkhan
Question no 1 :
Decentralization, within the most easier words, refers to the authority of a central government is shifted to a transnational entity. apart from this generalised concepts, the method of decentralization could be a advanced undertaking, taking up totally different meanings in numerous contexts and in line with the needs and plans of these answerable of its design and implementation. There are some ways during which a government could devolve power to the sub-national level. Thus, decentralization are often political, body, fiscal, or economic. In several cases, these differing types of decentralization applied administrated at the same time but, adding to the complexness of the method.
Transnational refers to the delegation of some parts of labor and also the associated responsibility by a superior to a subordinate. In easy words, once delegation is distended on associate degree organisational level, it's known as decentralization.
Centralization refers to the method during which activities involving designing and decision-making inside a corporation are focused to a particular leader or location. during a centralized organization, the decision-making powers are maintained within the head workplace, and every one and all offices receive commands from Highest office. The executives and specialists whose create essential choices are primarily based within the head workplace.
The main aim of any Centralized structure in any business firm is to employ a stratified framework if there is Incompetent management in the board
As such centralization is very important in an organisation that have a given objective to be visualized.
Hence, it is important to know that Centralization has a very important role to play in any given firm and necessary knowledge should be understood.
Centralization and Decentralization are the only two different modes of operating of a corporation. In centralization, the upper positions of the management hold the decision-making authority. Further, in decentralization, the management disperses the decision-making authority across the organization and brings it nearer to the supply of action and Informational data.
Centralization structure implies that all power, authority is upheld at the topmost level. In Decentralization structure, all Power , authority are upheld by middle and lower management. There are three types of centralization. The first type is the departmental centralization. The second type is the performance centralization and shirt type is the management centralization.
Question no 2 :
Centralization and Decentralization structures are two different structures of delegating authority and responsibility in any firm and It still exists. There are different structure of companies alignment for Centralization and Decentralization
The difference between Centralized and Decentralized structures in an organisation is that the king power of planning and decision making is only in the favours of the top senior management. Implying that all power and authority is completely concentrated at the highest level. Decentralized structure undergo the assignment of responsibility to middle or lower management. There is a way creating a ranking order in any business structure or firm, to ensure easy orderliness of an organisation to keep the system alive. And that is achievable because every hierarchy has a responsibilty to carryout.
Any organisation that wants a smooth orderliness of work is expected to laid down a hierarchy order in terms of planning, power of authority and the process in decision making. The hierarchial structures of centralization and decentralization are very crucial to any organization, hence cannot be sidelined. They are two ways of operation in any organizational firm.
In centralization, there is a rank of formal power and authority for making all the important decision for the organization in centralized structure while decision making is left for the middle and lower level of organization in decentralized structure meaning that all power of authority are delegated amongst middle and lower management.
It should be noted that both Centralization and Decentralization have an important set of structures. Both are very crucial in relation to the organisation's distribution of responsibility.
The Flow of Communication in Centralization Vertically aligned meaning that Centralization in any organization has the flow of communication designed upright, so as the middle and lower management has to strictly follow the directions of the senior management. while in Decentralization there is No alignment, it is free and more open
In Centralization, the Decision-making process is slower, while in Decentralization decision making is comparatively faster.
In Centralization the Authority and Power is only in hands of the Senior management and Since authority, power is influenced by senior management. The decision-making process is time-consuming and slower. while decentralization delegate responsibility and accountability to Middle and Lower management have reasonable authority.
The Suitability of Centralize structure is that there's No proper control over organization while decentralized structure have suitable Proper control over organization.
Centralization is usually Implemented in small sized firms that have a high number of employees, while decentralized structure is usually Implemented in large sized firms.
The main aim of a Decentralized structure in organisation is to lessen the loads of more responsibility and equally distribute among lower and middle management.
Hence, it is very important to also understand, that Decentralized structure has important value to any firm that keenly delegate the responsility among the order of the working force.
Question no 3 :
Advantages of Centralization
Centralized organizations Is very important because it has accuracy when decision is been made, Transparency in implementation of strategies and resources, and proper management over the policies direction of the firm.
There could be strictly enforcement of uniformity of approach and strategy. Thus helping in the eradication of overrun or more than one activities and reduce costs.
The advantage of the centralization structure is that the middle and the lower level people in an organisation will not be distracted from their roles about the decisions of the firm.
There is a better approach of supervising activities of the firm by establishing harmony in operations and conformity in making decision.
The main advantage of a centralized structure is that it has a focus vision by establishing universal purpose for all the section in the firm and helps them in working together for making society a better place to live.
Disadvantages of Centralization
The primary disadvantages of centralized organizations can include limited opportunities and creativity for employees to provide feedback and a higher risk of inflexibility thus requiring staff members to wait for approval from the top management before making any decision that would nurture inflexibility.
Sometimes the top management might not make decisions up by that may prove worthy for the organisation this would give chance to inequity, because of the rigid adherance to the firm's staff or too much rules and regulations will be brought about thus, limiting decisions and delay work,
Employees will only work based on what has been dictated to them, and they are not given the authority to make any decisions on a particular issue, even if the top management are not on desk thus encouraging dictatorship.
Centralization has poor quality of communication on small business if it is implemented to any firm and as a result of tight control, workers would not be allowed to use emails to communicate with their top leaders, as they might not have freedom with the hierarchy, where they can only share their ideas the managers.
The general system of centralization is difficult to handle, given that there is a very thin line between the norm and the results.
Advantages of Decentralization
In decentralized structure, every employee of the firm working at any level is informed about all what is happening in the organization and for the organization.
There is fastness in decision making and response are implemented in a timely manner. So as to remain competitive, it is important for organizations to take advantage of opportunities that fit within the organization’s strategy to get the better quality of decisions
Decentralization is important for organizations to constantly explore new opportunities to provide goods and services to its customers as this will enable better expansion of the firm
Decentralozed organizations spend in advancing exceptionally competent workers who were able to make good decisions that help the organization succeed its goals.
In decentralized structured organizations, the success of the firm depends on its ability to achieve, expand, and retain competent and motivated workers.allowing the middle and lower level to make decision boosts up their morale.
Disadvantages of decentralization
When power of authority given to the middle and lower hierarchy, they may not have the strength of making the right decision.
Decentralization structure might puts More burden on department managers to conceive turnover at any cost. Thus leading to inter-departmental contention leading to bitterness and enmity.
Decentralization structure organizations end up getting same staff effort. To be autonomous, each department should have access to purchasing, personnel, marketing and other specialists.
Exceedingly and skillfully persons might not be available to run the different department of the firm. Power in decision making might lead to heterogeneousness of decisions.
decentralization required training programmes for the staff which is usually time-consuming and relatively costy.
Question no 4 :
Decentralized structure is better for business because any growing business that is manage with decentralized structure tends to has a very low level of engagement in the day to day decisions making of the organization, but rather the top management focus on strategies policies and decision that would have a long term achievement of success to the firm as the daily issue of decision making are delegated to others and this would allow the top management to focus on expanding improving implementing and supervising the performance of the firm with regard to the objective aim of the firm.
Question no 5 :
blockchain is said to be in a decentralized way when no any individual or group has control—but rather, all users collectively retain control.
Decentralized blockchains are unchangeable meaning that it is irreversible when data is entered. For example, Bitcoin is a blockchains that is decentralized, this implies when transaction is being made they are permanently recorded and viewable to anyone.
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remarks : Plagiarism content
actually professor I am sorry for that. I guess it was when I was doing research about the homework task