Managers often find it necessary to change an organization’s degree of centralization or decentralization. Begin this exercise by reflecting on two very different scenarios in which this issue has arisen: 

Scenario A. You’re the top manager in a large organization with a long and successful history of centralized operations. For valid reasons beyond the scope of this exercise, however, you’ve decided to make the firm much more decentralized. 

Scenario B. Assume the exact opposite of the situation in Scenario A. You still occupy the top spot in your firm, but this time you’re going to centralize operations in an organization that’s always been decentralized.  

Exercise Task 

Now do the following: 

1. For Scenario A, list the major barriers to decentralization that you foresee. 

2. For Scenario B, list the major barriers to centralization that you foresee. 

3. In your opinion, which scenario would be easier to implement in reality? In other words, is it probably easier to move from centralization to decentralization or vice versa? Whatever your opinion in the matter, be ready to explain it. 

Given a choice of starting your career in a firm that’s either highly centralized or highly decentralized, which would you prefer? Why?